Customer expectations in the banking industry have continually been evolving in recent times. Despite having the facility of digital and app-based or web banking, customers still want more to remove friction with everyday banking.
85% of consumers now interact with businesses even without speaking to a human.
More banking firms now look to devise a conversational banking strategy to deliver a personalized customer experience. This is where chatbots can help a lot by making customer service faster and more productive.
The use of chatbots is the future in banking as they can free up agents for more complex issues and ensure an improved customer experience. Chatbots in banking can help combine technology with a human touch to deliver improved customer service and make banking tasks a lot easier.
Benefits of chatbots in banking
Automation can transform digital banking and bring many advantages to both customers and businesses alike. Bots can interact with customers, offer prompt answers, and speed up response time, therefore making the human touch redundant to some extent.
Chatbots can be used to enhance the digital customer experience in banking and also to achieve a range of benefits:
- Improved customer service – Chatbots are the foundation of conversational banking. Banks can use them to provide 24×7 support, give prompt answers and enhance customer interactions in a great way.
- Personalized customer experience – Customers always expect banks to adopt an individualized approach and treat them special. Chatbots can use customer data and analytics to deliver a personalized customer experience.
- Automated banking queries – Banks can leverage bots to automate common queries related to their products, services, offers, and other key aspects. When queries are automated, responses are always quick and this helps enhance customer experience.
- Higher productivity of banking agents – AI chatbots can make banking agents more productive by allowing them the freedom to focus on more complex problems instead of being stuck with basic customer queries.
- Reduced customer support costs – Chatbots can help banks automate a lot of systems and processes and solve a lot of queries in a quick time. This can save costs on customer support as there will be less requirement of human resources to do the banking tasks.
Chatbots for Banking: Examples and Use Cases
Chatbots have truly revolutionized the banking sector with their ability to be at the center of different banking activities. Banks are using AI-powered bots to serve customers promptly and efficiently, therefore changing the landscape of customer service.
Chatbot use cases are varied and their utility to the banking sector is huge and that’s why customers stand to benefit a lot.
- Acquire new customers
- Provide automated support for basic answers
- Send notifications and reminders
- Engage consumers with proactive communication
- Assistance with financial advice
- Monitor account
- Payment processing
- Fraud prevention
- Collect customer feedback
Let’s dive into each of the use cases that chatbots in banking have.
1. Acquire new customers
Many banks are deploying chatbots on their sites to help customers with various types of loan requests. Such bots can be available 24×7 to answer the queries of the borrowers and ease the process of the loan.
The OCBC Bank is a great example of how to use chatbots to help the bottom line. Its chatbot “Emma” has proved its worth in turning cold leads into pre-qualified leads with a total of USD$7,117,945.30 in loan applications within 3 months.
How banking chatbots can help in acquiring new customers?
- Leveraging chatbots for loans helps banks cut the cost of running customer support operations and boost conversion.
- When the credit process is automated, it minimizes human errors and increases customer satisfaction.
2. Provide automated support for basic answers
Banking chatbots generate better results and enhanced experiences for Financial Services companies.
Chatbots can help to automate support for basic and common questions of customers. Banks are using bots to handle various non-complex queries related to banking products and customer accounts.
HDFC Bank’s EVA (Electronic Virtual Assistant) is an AI-powered chatbot that offers quicker and better services to customers related to services FAQs, eligibility & interest rates, and payments. It has over 85% accuracy and holds over 20,000 conversations daily with customers from around the world.
Key benefits of offering automated customer support
- Automated support can disengage agents and give them time to focus on other essential banking tasks.
- By providing automated support, banks are able to offer quick replies to routine customer questions and help them make smarter decisions.
3. Send notifications and reminders
The importance of chatbots is huge for banks for push notifications to make customers understand banking services in a better way and become aware of products and features.
Sending timely notifications is a key aspect of conversational AI banking as it can deliver great value to customers.
Nomi chatbot from Royal Bank is a good example to benefit customers from the power of an advanced virtual assistant and help them make smarter decisions. The bot sends regular notifications to customers, recommends budget settings, and sends timely reminders about payments.
How chatbots in banking help in sending notifications?
- It’s possible to program the bot in a way to send important reminders, like for bill payment deadlines; or send timely notifications, like banking news and changes in credit score.
- By sending timely reminders and notifications, banks can boost their cash flows and win the trust of their customers.
4. Engage consumers with proactive communication
Chatbots give banks a great opportunity to engage customers with proactive communication and improve their experience. Bots can be deployed within an app or on the website, or on browsing pages to adopt pre-empt customers with quick answers.
Amy is an AI-powered chatbot solution for corporate banking at HSBC Bank (Hong Kong) that provides real-time responses to customer support queries. Apart from helping customers access information regarding the bank’s products and services, the bot has the capability to process and analyze customer feedback to help scale up its customer support.
How banks can use chatbots for proactive communication?
- Bots can help start proactive conversations with visitors to understand their needs better and serve them efficiently.
- The use of chatbots will let banks analyze customer interests or behavior and then offer relevant information or services to them.
- Banks can also rely on AI-powered bots to proactively asking customers about their interest in any particular banking product or service.
5. Assistance with financial advice
AI chatbots are advanced to the extent of working as a financial advisor and assisting customers with different aspects of their finances.
Bots can be programmed and deployed on banking games to enable a personal financial guide on anything, from investing money in properties to buying a new house.
Citi Bank’s Citi Bot SG is a chatbot that delivers answers to customer questions through Facebook. The bot works as financial advice by answering queries related to account balance, transactions, payment details, credit cards, etc.
How banking chatbots play the role of a financial advisor?
- Bots can track spending habits, offer credit scores, set & manage budgets to give customers insights into their money.
- The financial industry can leverage the potential of a bot and turn complex finance terminology into simple language to ease customers and saving time with support requests.
- Artificial intelligence (AI) bots can offer regular advice and recommendations to customers for better money management.
6. Monitor account
Gone are the days when bank staff was needed to handle all customer requests related to the account. Bots have become quite advanced as they are powered by artificial intelligence (AI) so can handle account-related queries in a successful manner.
Chatbots in banking make it easy for customers to monitor and manage their accounts with seamless conversation.
Wells Fargo is an American multinational bank whose chatbot helps customers can ask for their account balance, most recent transactions, expenditure on day-wise, etc.
How banking bots manage the accounts efficiently?
- Banks often deploy bots to retrieve customer account details such as recent transactions, account balance, due payment dates, etc.
- Bots can work as a personal financial management tool by effectively managing various account details and customer intents.
7. Payment processing
Banks are using chatbots to help customers submit and process different types of payments in a quick manner. Such bots can proactively inform customers of due payment and amount, and can also confirm receipt of payments.
When bots are used for payments, customers are saved the inconvenience of giving details each time with a transaction. The use of artificial intelligence means the bot can authenticate customers in order to access their account information private and do the needful verification from the bank system itself.
Ally Bank uses a virtual assistant within the Ally Mobile Banking app and it can be accessed via voice or text command. The bot can help to carry out a range of activities such as making payments, transfers, and deposits.
8. Fraud prevention
Banks keep so much sensitive data and information that they can not always rely on human touch for customer support. Plus, insider theft is always a big risk, nothing less than outside hacks.
By deploying chatbots, banks can totally remove humans from the loop of PII exchange and thus increase overall security.
Chatbots can also be programmed to follow all the data privacy and protection policies to ensure safe access to the data.
Similarly, bots can send notifications about suspicious charges, provide quick help in case an account has been hacked, and prioritize requests when connecting to a live agent.
Chatbots in the banking sector help in fraud prevention in various ways
- Chatbots can be instructed to access the banking data in alignment with the data privacy and protection policies to engage customers for conversations.
- Banks can use the voice and facial recognition capabilities of AI chatbots to add another layer to the security and stop cases of identity theft.
- Bots can enable banks to provide personalized, data-powered advice by improving customer’s data security and therefore preventing any fraudulent activity.
9. Collect customer feedback
Chatbots can help banks simplify the way they collect feedback and surveys from end-users. AI bots can be deployed on the site or within the app to learn what customers like and dislike.
Some banks use chatbots to ask questions in a conversational manner to keep customers engaged and squeeze a better submission rate.
Based on the feedback received from customers, banks can easily redirect the conversation accordingly and enhance the experience.
With a conversational survey format, chatbots can become a vastly better alternative to the long, static feedback forms, therefore boosting the rate of feedback collection.
How do banking chatbots help to collect customer feedback?
- Chatbots are powerful and can easily collect tons of data from interactions with customers and help banks get a better picture of their customers.
- Financial institutions can use bots to run surveys and collect direct feedback from customers.
Future trends for banking chatbots
Artificial intelligence is going to pave the way for banks to build digital financial capabilities and deliver an improved customer experience. Financial institutions are able to combine the best of AI features with facial recognition, authentication processes, and security to change the way customers interact with banks.
Future trends for banking chatbots include:
- Using chatbots in banking will ensure operational cost savings of $7.3 billion globally by 2023.
- Chatbots will enhance the bank’s ability to quickly detect and resolve usability problems against the systems and applications.
- AI-based chatbots can enable banks to detect the problems such as payment order execution, clearing, settles, etc. early before customers do and ensure reduced churn.
- AI systems will spare customers calls at odd hours and suggests bank the best times to reach a customer and ensure personalized solutions.
Deliver superior customer experience with banking chatbots
Chatbots have become indispensable to the financial sector where providing high-quality customer support is the key to success. Banks need to ramp up their game and integrate these technologies into the workflow to keep pace with the changing tides of today.
The use of AI-driven bots can help deliver a quick and personalized banking experience together with helping banks meet and exceed lofty expectations easily. Thanks to the advancements in artificial intelligence technology, it’s possible to improve customer experience and deliver great value.