The Incredible Story of Chatbots in Banking Sector

By Shiva Gaur
July 30, 2019 | 1310 Views

Latest Industry insights to keep you updated on the latest happenings.

In our previous blog we covered how chatbots are being used in financial services, now let’s understand how the banking sector is making use of chatbots to enhance their services and customer experience.

With increasing consumer expectations, the use of innovative technologies such as Chatbots, Artificial Intelligence, Machine Learning is making banks smarter day-by-day. 

Want to know how?

The integration of chatbots helps banks to:

  • Facilitate two-way communication by replacing channels such as phone, text, email, etc
  • Offer quick transactional and customer support
  • Provide employee assistance
  • Measure customer satisfaction
  • Guide on financial matters
  • Streamline routine back-office tasks
  • Offer personalized marketing strategy

To serve their tech-savvy consumers more banks are leveraging AI chatbot solutions. Thus, improve their digital banking experience.

Moreover, studies have shown that chatbots are going to save billions of dollars in the coming decade. According to Gartner, by 2020, chatbots will be handling around 85% of the customer service interactions without any human support. 

Isn’t it surprising?

6 Ways Chatbots can improve Customer Experience in Banking

Now when bots are embarking a new phase of banking. Offering a myriad of facilities and advantages from mobile banking to conversational banking.

Let’s take a look at the possibilities that chatbot has to offer to this sector as well as the consumers.

1. Personalized Banking Experience

Traditional banking processes were no doubt, extremely hectic. Standing in long queues, waiting for your turn to submit paperwork and then get access to your banking services. It was not only time-consuming but also tiring.

But, today the banking experience has transformed. Consumers can create their personalized accounts, perform activities like checking balance, transferring money, and updating account details on the go.

How?

By simply using a chatbot.

Not only this, consumers today can access their income and expense trends to get help from chatbots in investing their money.

Chatbots have given customers the leverage to make use of various banking facilities without putting much effort and time. They have also reduced the workloads of the bankers making different processes seamless. 

The best example of such a bot is of Erica, a chatbot and a voice bot of Bank of America that assist customers to make faster and smarter banking decisions. 

2. Ease of Use

It is annoying when you’re asked to fill your details whenever you visit a banking platform. Here, chatbots play a significant role and rescue you without compromising on the authenticity and security aspect.

The best part of having chatbots in your banking system is that they do not ask any detail of the customers, instead, they check their authenticity with their conversational elements. 

A Chatbot allows customers to repeat their past transactions easily by using a single command. Also, customers need not log in to a particular platform to get the banking perks, the bot serves them with the best suitable services without any hassle. 

3. Automate Banking Processes

Traditionally, bankers were unable to concentrate on other crucial tasks as they were occupied with tasks like customer assistance for a large period.

However, bots have freed up the bankers by handling the daily banking chores or by automating repeated tasks like resolving customer queries and have eliminated the need of hiring the extra workforce.  

The best example of such a bot is of Ally from Ally Bank. The job of this bot is to assist customers, monitor their accounts, make transactions, pay bills, track transactional patterns and so on using NLP (Natural Processing Language).

4. Simplified Workforce Functioning

Chatbots have no doubt made the complex banking services much easier for the customers. 

But did you know that how helpful the chatbots have been to smoothen the workforce functioning of banks?

Yes, they have simplified the workforce functioning up to a great extent.   

Employees are no more required to meet HR to ask for leaves or to login to the HRMS for the same. Using AI-powered bots, employees can apply for leaves, check their payrolls, and request for overtime payment.

Not only this, apart from resolving customer queries, chatbots have the ability to clarify the employee’s doubts as well. At the same time, they motivate and encourage employees to perform better and work even more efficiently. 

The innovative technologies are enhancing the banking sector by delivering contextual as well as personalized responses. Despite the unclear future of conversational banking, the growing adoption of chatbot developing services proves that it is worth investing in the technology. 

5. Fraud Prevention

Whenever you do a transaction, you get an OTP or an alert message acknowledging the respective date and time of that particular transaction. The message also states, “If the transaction is not done by you, contact your branch immediately.” 

As we know banks are known for their stringent policies, it becomes crucial to maintain and adhere to those policies, rules, and regulations. 

And what else could be better than chatbot keeping an eye on actions done by customers in the real-time such as swiping card or withdrawal of money?

The role of chatbot here is to send notification as soon as you have done any financial activity. This help banks to prevent fraud using chatbot development services and this build customer loyalty. 

6. 24×7 Digital Assistance

In the busy world where people work day and night or have to travel for work irrespective of time, it has become extremely important for banks to provide 24/7 digital support.

The best part of integrating chatbots in customer support is they do not feel tired and can deliver exceptional services to the customers 24 hours 7 days a week.

Chatbots can assist with queries about schemes or services or account-related issues, etc.

Unlike having a conversation on a helpline where all the queries are not resolved in the real-time, the chatbots are capable of resolving your queries in minimal time. In fact, customers can ask multiple questions in a single conversation with the chatbot.  

Isn’t it great!

What’s the best way to Design a Chatbot?

Chatbot development companies help banking firms develop a chatbot for providing customer help. They have full-fledged knowledge of advanced and robust technologies. 

All you need to do is explain your requirements, the type of features you would want to add in your chatbot application, and the purpose of building a chatbot. They themselves will suggest you various chatbot models and functionalities that will be beneficial for your business. 

Moreover, when it comes to the cost of developing a chatbot, it highly depends on the type of chatbot you’re asking them to develop. It may also vary from company to company. 

Now that you know the benefits of chatbots to the banking sector, hired a company as well for its development, start thinking the name of your chatbot and get ready to launch it ASAP!

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