Chatbots in Banking: Pros and Cons

Your banking customers will always be curious, so make sure to have a bot that’s equipped to answer the most popular questions. This type of bot helps users save money, reduce expenses in their day-to-day life, and provide a follow-up of their AI Chatbot for Banking transactions, through messages on WhatsApp or Facebook Messenger. From branches to bank bots, customers now find quick responses and online support 24 hours a day. It becomes less necessary to visit a bank branch to resolve a question.

• Customer feedback collection – they can be deployed in a mobile app or website in order to collect what customer likes or not and replace the forms.
• There is little surprise then that the new wave of digital banking is all about customer experience.
• They receive a custom banking experience based on their relevant needs without having to journey through irrelevant web pages of confusing information.
• With an AI banking bot, consult people on finances and money without any human intervention.
• With basic queries handled by a chatbot, agents have more time to spend answering sensitive and complex issues, ensuring that every query is given the time and attention it needs.
• Customers are understanding banking in a better way and are updated with services and products, push notifications or reminders are adding value for timely payments.

To conclude, banks today are serving a wide range of customers, of which the majority are the millennials who prefer the tech-savvy approach. Some of the banks and financial institutions leading by example are Societe Generale, TransferWise, ADIB and Swedbank. Here are some use cases of AI chatbots that will truly help you reap their benefits. Analyze customer’s sentiment and respond them in tune with their moods.

How Chatbots Can Help RIAs and their Client Service Associates

The bot allows every banking task, right from bill payments to money transfers to account information requests, etc. It helps customers do virtually every task, be it getting quick answers to FAQs, making various payments, or checking on a loan status. NOMI is a banking chatbot that hails from the Royal Bank of Canada, the country’s largest bank. NOMI is a chatbot that sends alerts, reminders, and tailored insights based on a person’s banking habits. Available in the RBC mobile app, it provides tools to help people manage day-to-day spending, including a calculated budget recommendation based on unique spending habits. As per the reports by Juniper Research, the operational cost savings from using chatbots in banking will reach $7.3 billion globally by 2023, up from an estimated $209 million in 2019.

If some of these factors are new, an chatbot can immediately ask the user some of the questions from the previous context to identify that it’s the correct person engaging. If there are some concerns, then a more detailed authentication activity can be involved to verify the user is who they say they are, which may include escalation to a live agent in some cases. And if the chatbot is integrated with WhatsApp, the messages are end-to-end encrypted.

Provides On-time Notifications and Reminders

Personalization– personalization involves chatbots tailoring the interaction based on customer profile and behavior. For example, an AI bot could provide a hyper-relevant cross-sell recommendation by learning that a customer prefers certain brands or types of products. By incorporating customer experience personalization, chatbots respond on an individual level, providing more meaningful interactions.

On the other hand, chatbots are able to handle more conversations with customers at a lower cost. This means you will not have to have as many employees working in your customer service department. However, we’ve seen a shift in how enterprises are investing in technology to reduce customer support costs and automate the bulk of customer requests.

» Secure transactions with financial chatbots

Streebo in collaboration with its technology partner deploys highly intelligent pretrained Bots that can emulate business processes pertaining to various Banking and Financial Sectors. Check out the client’s Case Study where a chatbot provides 3x higher conversion rate than a website alone. They want to be able to receive notifications about all their transactions instantly. And if they’ve set any budgets, they’d like to be informed when they’ve reached their limit.

With pattern-based bots, what a user says must explicitly match with how a bot was pre-trained in order for it to understand and move the conversation forward. In regard to this, variations of a question must be pre-trained for a chatbot to accurately understand what a person is trying to say. For instance, a virtual assistant is trained to understand “Where’s my order? ” If a customer asks the same question slightly differently, “Is my package arriving today? ”, the bot will not accurately understand the intent of the question is “order status.”.

Chatbot ROI Calculator – How much could your team save?

However, such a degree of authenticity is not needed in the banking sphere. Despite all existing and possible advantages, there is much room for improvement in the field of AI assistants. While artificial intelligence and machine learning technologies are constantly evolving at an astonishing rate, there are a number of flaws that bother users.

• In case, there comes a moment when you need human assistance, the bot carries forward your entire conversation to the human executive.
• Save time and money by letting bots handle basic queries and transferring complex ones to human agents.
• But waiting on a long list for an available live agent – is not the best option for the user, and here is where an AI banking chatbot can support.
• Banking is among the top three sectors where informational chatbots are most popular.
• Conversational chatbot solutions powered by AI also support multi-turn dialogue.
• While chatbots provide many benefits to organizations in the banking industry, there are some drawbacks.

Chatbots can also verify a customer’s identity through two-factor authentication. This means the customer’s chat history is saved and can be referred to later. So, when the customer starts a new conversation, the bot can quickly scan through previous chat and purchase history to provide customised offers and lead customers in the right direction. AI chatbots can inform customers with this information, right on their preferred channel of communication.

Our pretrained Banking Bots supports below mentioned use cases:

Banks need to improve the quality of their customer service without sacrificing time to redundant user queries. Subsequently, they now understand the importance of automation and 24/7 services that are not only convenient to them, but to their customers. This means seamlessly providing scalable 24/7 customer support on multiple channels and languages. Another benefit of these banking virtual assistants is that they can track recent transactions and charges, ready to answer these questions from customers about their latest spending activities. By automating these processes, the bank makes their work easier while simultaneously improving the overall banking experience. These conversational chatbots use Natural Language Processing to understand customer queries using specific keywords and answer accordingly easily.

They have to continuously innovate to build strong brand relationships and customer conversations are at the heart of this. By adopting AI solutions, banks now have the chance to innovate in new ways that transform how they capture brand awareness and build brand loyalty. Chatbots without artificial intelligence can only provide your customers with answers to questions that they already know.

For example- Erica is an AI chatbot launched by the United States, Bank of America. This chatbot can send notifications to customers, provide balance data, credit report updates, bill payments, and help customers with simple transactions. Also, this chatbot offer banking products and services like FDs, RDs credit cards, mortgage, and home equity loans to customers based on the data collected in earlier conversations. Numerous chatbots implement NLP, i.e., natural language processing, to analyze customer needs and provide accurate answers or solutions.

This leads to increased use of digital banking services and higher customer satisfaction. Chatbots simplify bill payments, money transfers, and scheduling and tracking transactions. Additional features, such as paying credit card dues and recharging prepaid cards, improve the utility of banking chatbots. But they also have the power to extend beyond the typical inbound customer service scenarios to engage across multiple touchpoints across the customer’s lifecycle, transcending traditional functional silos.

Citi Bot SG is quite a utility chatbot for customers for doing a variety of banking tasks. It helps users get basic account information through Facebook Messenger. The bot provides quick answers to queries related to account balance, transactions, credit card rewards and payment information.

• The best feature of conversational AI is, it functions on an omnichannel basis.
• For example, because of chatbots, banks are projected to save over 7 billion dollars next year.
• A well-designed bot can keep track of mobile banking behaviors, patterns, and needs.
• Chatbots indeed have the potential to replace the tasks of humans to a lot of extents.
• These conversational experiences can actually be faster than a user paying over the phone, website or even an app, due to the agility and speed of a chatbot and its ability to perform a multitude of tasks and actions.
• We, at Engati, believe that the way you deliver customer experiences can make or break your brand.

It is essential for banking chatbots to be available on most platforms to help educate and initiate easy banking via all channels. In 2022, it is expected that most businesses will integrate more payment services into chatbots. With this facility, the user will only have to say, “I want to make my credit card payment,.” The rest of the payment processing would be taken care of by chatbots via connecting it to a payment system. To ensure customers get what they are willing, chatbots need to be more understanding and able to provide human-like communications. Chatbots leveraging technologies like AI and NLP possess semantic analytics features and offer more human-like conversations than before. Access actionable reports on the performance of your chatbots and human agents.