Chatbots in Banking: 10 Ways to Improve Customer Experience

Inbenta’s chatbots allow banks to interact with their customers on their favorite channels at any time of the day. Do you ever wish you had a personal assistant to make your banking tasks easier? AI chatbots are transforming how financial services are delivered, making it simpler and more efficient for customers to interact with their banks. Banking institutions have embraced this cutting-edge technology to provide customers with a more personalized and efficient experience. Amy is a popular virtual assistant chatbot available on the HSBC website’s several product pages. It provides 24/7 instant online support to customers with any type of banking inquiries, and can also offer quick answers to common questions related to the bank’s products and services.

For this purpose, they use the questions that customers ask, for example, to learn their account balance, as a training data. We were able to see a 20% dip in customer service request escalations in a few months using Kommunicate. Our waiting queues are dissolving much faster, and users are coming back to the chatbot, making it a preferred channel question. A service company with a product mindset developing custom digital experiences for web, mobile, as well as AI-based conversational chat and voice solutions. Another use case for a generative AI chatbot is to provide financial product suggestions that can help users with budgeting. For instance, the chatbot could automatically transfer a certain amount of every paycheque into a savings account and potentially set alerts for when a certain amount of money is spent.

Finance and Banking Industry

We live in an era where technology is changing the face of industries, and banking is no exception. Today, AI bots in banking are no longer a novelty but have become vital cogs in the wheel that drive this sector. Be it transaction management, account queries, or personalized product recommendations, KAI makes every banking experience unique. They meticulously analyze countless data points and customer transactions in real-time to identify patterns and extract meaningful insights. While the technical aspects are important, never underestimate the power of simplicity and a well-designed interface. An AI bot’s interaction with customers should be as ‘human-like’ as possible.

Customers can simply chat with the bot, instruct to pay a specific bill or transfer funds to a certain account, and the bot executes these tasks almost instantaneously. Long gone are the days of navigating through complex banking interfaces to conduct transactions. Think of your AI bot as another employee – it needs to fit into your organization’s culture and communicate with your brand’s voice. Customize your bot to be ‘on-brand’ and add another layer of uniqueness to your banking services.

Questions must be programmed beforehand

They give financial advice by tracking the financial market and the customer’s expenditures, give pending payment reminders and automate scheduled payments. Banking chatbots are also capable of streamlining banking processes that would ordinarily take multiple hours and paperwork to complete. From opening a bank account to providing balance information, assisting in simple transactions, giving debit and credit card reports, accessing specific bank details, and so much more. This is one of the best banking chatbots that offers automated accounting and finance processes. It also provides invoice processing and expense tracking with reporting, which can help improve money management for your clients. Kore.ai also acts as a conversational AI bank agent that helps customers keep track of their money with balance notifications and bill reminders.

This results in a more holistic customer experience where the bank’s customers always get the help they need whether it’s from a human or a machine. It’s also a win-win for support staff who now spend significantly less time dealing with repetitive questions and can focus instead on more meaningful interactions that bring greater value to the bank. No artificial intelligence-powered virtual agent can claim to effectively handle every single customer query. Since October 2018, DNB has implemented Aino as first-line customer support, routing all customer service traffic to its website through the virtual agent first before customers are able to reach human support. A confident move by the technologically-forward bank that delivered immediate results.

With chatbots continuing to increase in popularity, experts predict that chatbot demand among consumers will continue to grow as well. Chatbots are computer programs that use artificial intelligence (AI) to simulate conversations with users, providing quick and efficient assistance. In the banking industry, chatbots have the potential to revolutionize the way customers interact with their financial institutions. Overall, Generative AI can add significant value to banking chatbots by improving communication, providing better customer service, reducing fraud and risk, and increasing accessibility to banking services.

Watsonx Assistant has been trained in Portuguese and in banking by a dedicated team to answer 10,000 customer questions. There are primarily three use cases for which Conversational AI solutions have proved to be effective in the banking sector. For further AI chatbot tutorials, please see our tutorials on how to build a chatbot widget, and don’t forget to check out the SmartAssistant AI Chatbot demo. Don’t hesitate to contact us if you need more information about this or our other products – Sendbird Chat, Calls, Notifications, or Live! If a customer needs further assistance related to fintech bot functionalities or other related queries, be ready to provide it.

Role of AI Bots in the Banking Industry

The banking industry is operationally intensive, and managing these operations can be expensive. It involves huge piles of paperwork manual processes, and requires a large workforce. Thus, finding ways to control these costs without compromising service quality is a significant challenge. Embodying a human-like understanding and responsiveness, these bots use AI algorithms to interpret user requests, recognize patterns, respond to queries, and even predict and fulfill customer needs autonomously.

You can use finance chatbots for your customer service, client support, account analysis, and even for detecting suspicious activities. These are just a few examples of hundreds of tasks that chatbots can help you with. In the nearest years, we will definitely see the rise of voice assistants in all fields, including the banking sector.

You can monitor customer opinions, improve your products, or prioritize customer service concerns by analyzing customer sentiment. For example, if the customer buys a plane ticket, a chatbot might suggest getting travel insurance or opening a foreign currency account. Data shows that banks that use chatbots in their customer service can increase their revenue by up to 25%.

It can reduce the workload on human employees and deliver more customer satisfaction by reducing the response times. Bank customer service staff are notorious for making customers wait an average of 10 minutes during working hours, making it seemingly impossible to reach an agent in case of emergency. A voice-based IVR (Interactive Voice Response) system helps battle this problem by providing customers with instant access to service through a voice-based conversational interface. In 2018, Kotak Mahindra Bank launched a voice bot called Keya aimed at helping users navigate swiftly and smoothly through the IVR systems.

What is a Banking AI Chatbot?

This means providing an omnichannel experience that gives customers control over whether they talk to a bot or a human – and customers are very clear on this point. The CFPB is actively monitoring the market, and expects institutions using chatbots to do so in a manner consistent with their customer and legal obligations. The CFPB also encourages people who are experiencing issues getting answers to their questions due to a lack of human interaction, to submit a consumer complaint with the CFPB.

All this has enabled BDO to introduce new pricing models for their auditing services. A not-for-profit organization, IEEE is the world’s largest technical professional organization dedicated to advancing technology for the benefit of humanity.© Copyright 2023 IEEE – All rights reserved. She has extensive experience in content creation for technology companies across the world, including the UK, Australia and Canada. The confluence of AI and banking isn’t merely a trend; it’s a powerful revolution that’s paving the path for a fascinating future. So, let’s walk you through the exciting use cases where AI bots are leaving their unique impressions. Incorporate strong data encryption protocols and adopt the highest security standards to ensure secure transactions.

• Whether you’re looking to open a new account or need to block a lost debit card, the bot is there to expedite the process.
• According to the research done by Accenture, nearly 57% have accepted that chatbots can bring significant ROI without much effort.
• We’ve already reached the point where bots help customers deal with banking issues and queries on a daily basis.
• A chatbot can act as a personal sales rep suggesting the most relevant financial products to every customer based on their data.

Initially, chatbots were simple FAQ engines that could only answer questions already available in their database. With the rise of ML and NLP (Natural Language Processing), bots can have more meaningful conversations by interpreting questions that are not within the database. In the mobile-oriented world, as both individuals and enterprises, we are all app fatigue. There are so many apps around and we can even see separate applications for different functions within a bank. The sustainability of these apps that create high costs for the banks and which are often insufficient in terms of the customer expectations seems to have decreased.

Easily integrate your chatbot with your websites, web apps, CMS, and mobile apps. In this article, we have explored the Top Generative AI Chatbot Use Cases in Banking and Financial Services, along with the advantages of incorporating such chatbots. “A poorly deployed chatbot can lead to customer frustration, reduced trust, and even violations of the law,” CFPB Director Rohit Chopra said in a statement. DRUID conversational AI helps keep finances under control by giving budget planning tips, or suggestions on how to save money based on transaction history.

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