A complete guide to banking chatbot use cases & examples

No more long waiting times. Transform your banking experiences with an omnichannel AI-powered chatbot.


Banks are looking to automate maximum of their repetitive tasks with better utilization of AI, especially in customer services. Now customers no longer need to wait in long queues to get their desired assistance. Also, the improved CX functionality reduces 50% level-1 support cost for banks. 

In recent years, an emerging technology- Chatbot has significantly shaped how banks communicate, operate, and function with customers. The integration of chatbots has brought revolutionary upgrades to digital banking experiences. 

Let’s guide you in detail on how chatbots have come forth to be the next game-changing feature in the banking industry. 

What is a banking chatbot?

A banking chatbot is an AI-enabled conversational interface to interact with customers and provide help. It uses artificial intelligence or simple if/then statements to recognize words or phrases and respond accordingly.

Chatbots for banking are incredibly powerful and can manage smart communications on behalf of the bank. With a banking bot, it’s possible to handle millions of users simultaneously and enhance their experience.

The evolution of chatbots in banking

During the initial stages, financial institutions such as Bank of America initiated trials with basic functional chatbots primarily focused on customer support. As an illustration, Bank of America launched "Erica," a virtual financial assistant aimed at aiding customers with fundamental banking activities. These initial chatbots operated as rule-based systems, functioning based on predetermined scripts and decision trees.

As time has progressed, there has been a significant development from rule-based systems to AI-powered chatbots in banking. Around the mid-2010s, financial institutions like Wells Fargo and Capital One embraced technological innovations, integrating NLP and AI functionalities into their chatbot systems.

Around the years 2019 to 2020, notable banks including JPMorgan Chase and HSBC made significant financial commitments to AI-driven chatbot technologies. The progress has continued since then. At present, a large number of banks are heading towards digital banking, incorporating banking chatbots as their core functional system in customer engagement. 

In addition to banks, globally renowned fintech pioneers have also begun harnessing the innovative capabilities of chatbots since then. bKash, a leading global provider of Mobile Financial Services (MFS), overhauled its customer app in September 2019, integrating cutting-edge technologies and customer-focused features to enhance user experience. As a part of the advancement, bKash introduced a chatbot as part of its customer service solution in 2022.

Banking chatbot examples

Customer service chatbots

Customer service chatbots in the banking industry are focused on assisting customers with general inquiries, troubleshooting issues, and providing support. They can understand and respond to a wide range of customer queries related to account management, banking products, and services.

Transactional chatbots

Transactional chatbots are designed to handle basic banking transactions and inquiries. They interact with users to perform tasks such as checking account balances, transferring funds between accounts, paying bills, and providing transaction history.

Personal finance chatbots

Personal finance chatbots offer tailored financial advice, insights, and recommendations based on users' financial data and preferences. They help users track their spending habits, set savings goals, create budgets, and manage investments.

Lead generation chatbots

Lead generation chatbots engage users and collect information to generate leads for banking products or services. They interact with users to gather data such as contact information, preferences, and financial needs, which can be used for targeted marketing and sales efforts.

Educational chatbots

Educational chatbots in banking provide users with information, resources, and guidance on various financial literacy topics. They offer tips, articles, tutorials, and interactive tools to help users improve their financial knowledge, skills, and behaviors.

Security chatbots

Security chatbots focus on ensuring the security of banking transactions and accounts by proactively identifying and addressing security threats and providing guidance to users on security best practices. They monitor account activity, detect suspicious behavior, and alert users about potential security risks.

Minimize confusion by adopting co-browsing. Seamlessly transfer chats from bot to human.

The benefits of chatbots in banking systems

Ensure next-level customer support

  • 24/7 Availability: AI doesn’t sleep. They can answer basic to complex questions, resolve incoming issues, and offer support around the clock, regardless of time zone or holidays.
  • Faster Response Times: Customers don't have to wait in queues. It can answer many questions instantly, significantly reducing resolution times and frustration.
  • Personalized Interactions: REVE Chatbots can learn from previous interactions and responses based on customer needs. This creates a more relevant experience.
  • Multilingual Support: Chatbots in banking can communicate in multiple languages, catering to a broader audience and offering inclusive service.

10x faster resolution for customer inquiries

  • Immediate Availability: Unlike human agents, chatbots are available 24/7, allowing customers to get answers or initiate actions instantly, saving valuable time.
  • Streamlined Interactions: Quickly guide customers through well-defined processes. Eliminates wait times and reduces back-and-forth communication.
  • Automated Tasks: Automate routine tasks like balance inquiries, bill payments, and password resets instantly. Free up human agents for more complex issues.

Competitive advantage over modern banking

  • Data-Driven Insights: Chatbot interactions generate valuable data on customer needs and preferences.
  • Fraud Detection and Prevention: Real-time monitoring of transactions and activity allows chatbots to flag suspicious behavior and alert customers immediately.
  • Accessibility for Diverse Users: Text-based chat interfaces overcome physical or language barriers to ensure inclusivity and equal access to banking information and support.

Banks experience more functional benefits

  • Cost Reduction: By automating systems using chatbots, banks can reduce half of their operational cost in customer services.
  • Operational Efficiency: Banks can handle more customer accounts at a time. This causes significant improvement in operational efficiency. 
  • CLTV: Providing customer lifetime value is another substantial benefit of banking bots. By increasing the number of satisfied customers, it reduces the churn rate and drags in more revenue.

Ensure happy banking with REVE Banking Chatbot.

Essential banking chatbot features to consider

Account management

Customers should be able to access basic account information like balances, transaction history, and recent statements.

Card management

Features like blocking lost or stolen cards, reporting suspicious activity, and requesting new cards can significantly enhance user experience.

Personalized support

Chatbots can leverage AI to personalize interactions by remembering user preferences, offering relevant suggestions, and tailoring responses based on past interactions.

Multi-factor Authentication

Implementing strong authentication methods like two-factor or multi-factor authentication is crucial to protect sensitive financial information.

Data encryption

All communication between the user and the chatbot, including login credentials and account details, should be encrypted using industry-standard protocols.

Fraud detection

Integrating AI-powered fraud detection systems can help identify and prevent suspicious activity, safeguarding user accounts.

How do banking chatbots work

According to our survey of current banking clients, 87% prefer receiving immediate support from a chatbot rather than waiting in a queue for human support agents. Here is how a chatbot works in the banking system.

Natural Language Processing (NLP)

NLP is a branch of artificial intelligence that deals with the interaction between computers and humans through natural language. For chatbots, NLP enables them to understand and interpret human language, whether text or speech.

NLP breaks down the input text into smaller units such as words or phrases. Then, it analyzes the grammatical structure of sentences to extract meaning. It Identifies entities such as names, dates, and locations mentioned in the text and determines the sentiment or tone of the text. The language model then predicts the next word or phrase based on the context of the conversation. Finally, it generates responses that sound natural and coherent to the user.

Machine Learning (ML)

Machine Learning is a subset of artificial intelligence that enables systems to learn and improve from experience without being explicitly programmed. Chatbots use ML algorithms to understand user input, learn from past interactions, and generate appropriate responses.

Now, in this model, chatbots are trained on large datasets of conversations to learn patterns and associations between user inputs. It identifies relevant features from the input text, such as keywords, entities, or context. The algorithm selects the appropriate ML algorithm based on the task.

Finally, The chatbot's ML model is trained on the labeled training data to optimize its performance. When a new input is received, the trained model predicts the most likely response based on the learned patterns.

Rule-Based Systems

Rule-based systems operate on predefined rules and logic programmed by developers. These rules govern how the chatbot interprets user inputs and generates responses.

The chatbot matches user input against predefined patterns or rules to determine the appropriate response. Once it finds a matching rule, the chatbot generates a response based on the corresponding rule.

The rule-based systems often include fallback mechanisms to handle inputs that don't match any predefined rules. For example, providing a default response or escalating the query to a human agent. The system requires regular updates and maintenance to adapt to changes in user behavior. Also, to add new rules as needed.

Hybrid Systems

Hybrid approaches in chatbots work by combining any two strategies of the given above. For example, a hybrid chatbot can leverage the strengths of both rule-based and NLP chatbots. Rule-based systems will handle frequent, simple queries efficiently, while NLP tackles complex questions and learns from interactions.

High programmed chatbots work under two-tier systems. The first tier is the rule-based system, equipped with a decision tree or flow chart. It handles common questions, pre-programmed responses. If more complex queries come, it escalates the conversation to the second tier of more advanced programming.

REVE Banking Chatbot partners experienced


Increase in incoming queries


faster response time


Less chat abandoned rate

Potential use cases for chatbots in banking

Account balance Inquiries

Customers can use the banking chatbot to check their account balances in real-time without needing to visit a branch or log in to online banking.

Transaction history retrieval

Let your customers retrieve their transaction history, allowing them to view details of past transactions such as deposits, withdrawals, and purchases.

Loan application and status updates

Customers can apply for loans through the chatbot and track the status of their loan applications.

Account statement requests

Eliminate the hassle of visiting branches for your customers to request and receive account statements.

Credit card management

Banking AI Chatbot can help customers manage their credit cards by providing them with information and alerting them with timely notifications.

General customer support

Chatbot for banking provides general assistance and support to customers, answering frequently asked questions, and providing information about products and services.

Branch and ATM locator services

Give your customers branch and ATM locations instantly without having to browse over internet pages.

How do banking chatbot improve customer services

Instant access and availability

Banking chatbots are accessible through various channels such as websites, mobile apps, or messaging platforms. Your customers can engage with chatbots instantly, without waiting in queues or navigating through automated phone systems.

Efficient query handling

When a customer interacts with the chatbot, it utilizes natural language processing (NLP) to understand the query. The chatbot then retrieves relevant information from the bank's databases to provide accurate responses.

Seamless transaction support

Chatbots facilitate banking transactions directly within the chat interface. Customers can initiate transactions in real-time without needing to switch to a separate banking app or website. The chatbot guides customers through the transaction process, ensuring accuracy and security.

Contextual understanding

Banking chatbots leverage customer data and transaction history to offer personalized recommendations & assistance. by understanding the context of the conversation and previous interactions, chatbots can provide tailored solutions to customer queries.

Educational assistance and guidance

Some banking chatbots offer educational resources and tips on financial literacy topics. Customers can receive guidance on budgeting, saving, investing, or understanding complex financial products.

Escalation to human support as needed

While chatbots handle many customer queries independently, they also recognize when an issue requires human intervention. If a query is beyond the chatbot's capabilities or if the customer prefers to speak with a human agent.

Get rid of all at once with Banking Chatbot 

No more
long wait times

Cut excess
operational costs 

Streamline complex
support processes

Solve more problems in
a reduced duration 

How secure is AI banking chatbots

Encryption: Banks use secure encryption to protect sensitive information exchange through chatbots. It is thus, difficult for hackers to intercept and steal the data. Even if they manage to gain access to the communication channel, they are not able to enter the system.

Authentication: Chatbots usually require authentication before allowing access to sensitive information or performing transactions. This can involve multi-factor authentication, such as entering a password and a code sent to your phone, adding an extra layer of security.

Fraud detection: Some chatbots in banking use AI to analyze data and identify suspicious activity that might indicate potential fraud attempts. This can help to prevent unauthorized transactions and protect customer accounts.

Note: Chatbots in the banking industry offer a secure and convenient way to access banking services, but it's vital to remain vigilant and exercise caution when using them.

Addition of Safety Instruction for Users

Beware of any unusual requests: If the chatbot asks for information you wouldn't typically share with a bank representative, such as your full social security number or password, stop the conversation and contact the bank directly. Never share your login credentials through the chatbot: Always log in to your bank account directly through the official website or mobile app.

Review the bank's security policies: Understand how the bank protects your information and what steps they take to ensure the security of their chatbots.

The future of banking chatbots

Advanced AI and machine learning

In the future, more sophisticated AI and machine learning algorithms will enable chatbots to understand complex user queries, analyze financial data, and provide personalized financial advice and recommendations.

Proactive support

Chatbots will move beyond simply answering questions and evolve into proactive assistants, anticipating customer needs, suggesting personalized financial solutions, and offering timely reminders for important financial tasks.

Transparency and user control

Increased transparency about data collection and usage practices will foster user trust. Customers will likely have more control over the data they share with chatbots and how it is used.

REVE Banking Chatbot:
features and functions 

Make a zero-coding bot

Build a bot without any coding skill. Customize the look-n-feel of each aspect of the bot to meet your business goals. Build bot in no time and put to it work quickly.

Qualify your leads

Engage your visitors and stay available for them round the clock. Convert the website visitors into qualified leads automatically. Let AI bots transfer leads to your sales team.

Scale your sales

Deliver automated customer support and sales conversions with chatbots using REVE Chat’s AI powered live chat platform. With chatbots, reduce issues managed by live agents and enhance customer experience.

Deliver a Great conversational experience

Respond accurately to the inputs of customers with our bot. deliver authentic conversational experiences at each step of the way. Route chats to a human rep to ensure a humanized support to the complex queries.

Bulk ML training

Train your bot to deliver faster and effective answers to customer queries. Import all the general FAQs and answers to train your AI chatbot. Let training improve the overall accuracy of customer conversations.

Boost customer satisfaction

Analyze customer’s sentiment & respond them in tune with their moods. Use the power of AI to interpret customer’s queries and offer quick replies. Answer basic questions immediately to boost customers’ satisfaction.

What makes REVE Chat the top-rated option
as a banking chatbot?

Human + bots

Give your visitors the best of both worlds, the flexibility of switching to live chat with human agents for complex scenarios.


Collaborate with your customers using co-browsing to swiftly resolve their issues, enhancing understanding and eliminating confusion.

Frequently Asked Questions (FAQs)

In the future, chatbots will be able to handle a wider range of tasks, potentially including even complex financial transactions. They may use features like optical character recognition (OCR) to process documents. They will better analyze the data and provide tailored financial recommendations.

Around 65% of banks use AI at some point in their tasks. Among them 30-35% use chatbots to automate customer engagement. More number of banks globally are trying to implement chatbots in their systems.

Yes, the banking chatbot is available 24/7 to assist you with your banking needs, providing round-the-clock support and access to your account information.

REVE Banking Chatbot facilitates seamless human handover. If the chatbot is unable to understand your request or answer your question, it will often offer to connect you with a live customer service representative.

Yes, the banking chatbot uses secure communication protocols to protect your personal information. You should never be asked to provide your account login credentials directly within the chat.

Enjoy co-browsing and seamless human handover