How Companies Can Leverage Chatbots in Financial Services

By Alka Singh
June 24, 2019 | 527 Views

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

In a recent survey by Oracle, the company found that by 2020, 80% of companies will be leveraging chatbots. But, the future of chatbots in financial services is still cloudy.

 

Banks and fintechs have already introduced chatbots in different business line support systems. Erica, the virtual assistant of the Bank of America and BMO Bolt from Bank of Montreal are just perfect banking chatbot examples that depict the future of banking.

Therefore, here it is essential to ask every finance company that is your business equipped to compete with today’s’ and future business requirements?

In the past few years, the financial services industry has witnessed drastic change and competition. The sector already has lots of things to manage and regulate and emerging competition, rising customer expectations, and regulation just pushed the industry to look back to their IT and come with game-changing innovation.

On top of that, FinTech start-ups are booming like mushrooms across the world. These start-ups are intruding upon established markets. They have begun to lead with customer-friendly solutions developed from the ground up and do not have a burden of legacy systems.

The expectations of customers also have increased due to other industries. They are now demanding better and seamless experience regardless of channel.

application of artificial intelligence in finance

Technology offers solutions, allowing financial institutions to cut costs and become more efficient at what they do. There are several financial services technologies continually evolving, and a lot still needs improvement to achieve the desired outcome. Among all, a chatbot is one and started delivering the expected results.

Are Chatbots Functional?

Have you ever paid attention to the moment when you browsed a company’s web site, a small pop-up window appears on the screen and greets you with the asking, “How can I help?”

Such way of greeting visitors on websites is becoming highly common. Companies these days suppose every visitor a first-time visitor, and it could be their first interaction with the firm. Therefore, they are using this pop-up window to perceive their customer service. But the warm greeting a visitor receive is hardly served by a human being. Your conversation at that pop-up window could nearly be with a chatbot.

application of artificial intelligence in finance

A Growing Market

  1. 67% of industry professionals believe that chatbots will outperform mobile apps in the next five years
  2. Predictions that bots will save businesses $8 billion per year by 2022
  3. By 2022, we’ll be talking to bots more often than we talk to our friends.

What Is A Chatbot?

Chatbots are forming conversational experiences using artificial intelligence and natural language processing. AI and NLP engines allow a chatbot to mimic conversations with real human beings. A chatbot today can mimic conversation in both written and voice formats.

Chatbots technologies have evolved to the extent that they can identify and understand the underlying intent of a human phrase.

The more a chatbot interacts with human, more its software learn from conversations and produce improved responses over time. Experiences chatbots are today capable to provide range from functional to fun.

Types of Chatbots?

With the help of custom bots development services, conversational experiences can be designed for AI-powered chatbot to accomplish different kinds of jobs. Chatbots in financial services and banking solutions holds tremendous scope and addresses several business use-cases. Therefore, strategic investment in a virtual agent could prove for an organization a highly advantageous business move. Here are top areas where the application of artificial intelligence in finance will help receive higher ROI.

1. Informational 

Although informational chatbots are considered the simplest type and usually designed to provide general information like FAQs, news stories, and push notifications. It is changing habits how we store and access financial information. A visitor can ask questions that range from the latest account balances, when certain bills are due, the status on accounts and more.

2. Transnational

Concluding transactions and paying bills through a chatbot is much different than asking general questions. But AI and allied technologies used in Chatbot has grown and facilitated transactions of money for products or services in the chatbot window.

A user doesn’t need to worry about security concerns as the chatbot first authenticate the user account via OTP or other convenient yet secure ways. Chatbots in financial services could help users have a hassle-free transnational experience that ranges from paying for booking a hotel, transferring money between accounts, help to block cards, and more. The chatbots can be designed to help users in day to day requirements.

3. Advisory

Self-learning conversational UX is the next evolution in chatbots. These bots are designed to learn from computer interactions. Therefore, it will be able to determine the appropriate next steps. These types of chatbots in financial services have huge scope in advisory requirements.

People have been hesitant to discuss their financial conditions and investment requirements with experts. On the other hands, so much time of agents spent on answering clients questions through call or email like what is your hourly rate? How many people can we have under one profile? Real-time chatbots are a go-to solution for these issues.

application of artificial intelligence in finance

Benefits of Having Chatbots In Finance Services?

Chatbots are data-driven, scalable, and enable a richer customer experience. A well-designed chatbot can work the same way not in finance, but in banking, retail, hospitality, and many other sectors. Since chatbots are designed to offer a personalized experience to users, here are the benefits finance businesses could experience from Chatbots.

a) User Engagement

Customers are asking for instant communication. Emails and phone calls have become things of the past after the presence of social media and messaging apps. Chatbots bridges this communication gap excellently between organizations and customers.

It is tool users embracing the day in and out. Chatbots can really grow customer satisfaction for financial organizations and professionals, instead of replacing them. Take for example, Bank of America rolled out “Erica” – a chatbot and has seen impeccable results.

b) 24/7 and Scalable

Conversational agents stay on computing systems, thus allowing an organization to provide service to their visitors throughout the day. Evolving technologies also allow them to be like a trusted, always available and accurate partner. Once a company builds and use conversational experience, it helps them serve users 24/7.

c) Intelligence Advantage

NLP is evolving every passing day, so does chatbots. These small behind the screen technology is now capable of understanding how customer speaks and respond accordingly. Integrating intelligence in an experienced chatbot is designed for creates a more robust business model that could be difficult for competitors to replicate.

So, At Last

The bot phenomenon will cause broad disruption in many areas of finance and economy of the world. But here it is important to take note that despite their popularity, it is not as easy as it seems to create a truly valuable chatbot. A chatbot needs to be designed and developed to create an experience that provides value both to the customer and business.

Do you need a bot for your business? Only rely on professional bot application development service providers.

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