Chatbot in Banking: A financial revolution in customer service
Almost every industry has been affected by advanced digital transformations, as companies try to gain a competitive advantage and cater to changing customer demands. Covid-19 has sped up the deployment of these technologies even further. Social distancing has altered how people purchase goods, communicate and work, and banks hadn’t relied not having face-to-face contact with people for a prolonged time or not having employees working in their workplaces. Consequently, they have had to reduce their reliance on people, whenever the situation allows, to turn into a lights-out business that that fulfills client needs for 24/7, omnichannel access to services.
You may be thinking about what banks have to do with chatbots. It’s simple: automate service. Service today is slow and sometimes unpleasant because people are prone to mistakes and misunderstandings. Technologies like AI and Machine Learning have transformed the banking services model due to customers’ faith in allowing the computers to decide for them and their significant financial decisions. Many large fin-tech firms are also in action with their digital payment programs. They also use chatbots for efficient sales and service by their online payment platforms. Nonetheless, there are many banks that do not support this kind of digital conversion because of their own concerns. Their profit is expected to decline by about 35%. But those who are more advanced can foresee the convenience of their customers. This will help them increase their profits by 45%.
According to estimations calculated by Juniper Research, in 2023, chatbot interactions will save 862 million hours for banks, which equals to $7.3 billion cost savings worldwide.
Chatbots in the digital banking sector can be deployed to accomplish several tasks to optimize daily operations and improve the omni-channel customer experience and also achieving a range of other benefits, such as:
- Improved customer service – Banks should use AI bots to provide 24×7 support, give prompt answers and enhance customer interactions, which thus, can set them up to confront the future difficulties of conversational banking without any problem.
- Automated banking queries – Bots are quite an excellent tool to automate common queries related to products, services, offers, etc., and banks can benefit from them to ensure quick responses and enhanced experience to customers.
- Higher efficiency of banking agents – Automation makes agents more productive by allowing them free time and by letting them focus on more complex problems rather than being stuck with common customer queries.
- Send Timely Alerts & Notifications – Chatbots can be configured to send valuable reminders and regular alerts, such as bill payment deadlines or the delivery of specific documents for financial transactions (e.g., loan applications). They can also send important notifications, such as banking updates and credit score changes.
- Decreased client service costs – The use of AI chatbots is an opportunity for banking companies to automate most of their customer-centric processes and save a lot of support cost that is otherwise spent on human resources doing the banking tasks.
- Tackle Suspicious Activities – Users frequently encounter suspicious activities that may put their bank accounts and cash at risk. With conversational banking, customers can receive notifications and help if their account has been hacked, and they can contact operators on a priority basis.
- Easy & Uncomplicated Lead Generation – The presence of chatbots in the financial area has simplified the entire process of lead acquisition. The chatbots are deployed on the bank’s official website/app and engage with consumers to see whether they are interested in buying their bank’s products. Following the first engagement, the ‘leads’ may be forwarded to the appropriate bank team for an additional follow-up to close the deal. When compared to traditional approaches, banks have noticed a substantial rise in the number of leads acquired utilizing conversational banking methods.
Chatbots for digital banking services are here to stay, and banks would be unable to function without them. The share of banks that use AI solutions and chatbots in particular are constantly rising. As another factor, the use of smartphones and other smart devices is also a rapidly growing trend. These two driving forces determine the near future of artificial intelligence assistants in the banking industry. Taking control of the situation now is the best course of action.
How SmartRep allows banks to interact with their customers
By integrating SmartRep Virtual Assistant with bank’s backoffice systems, we allow online customers to receive personalized answers with respect to their banking account, and can significantly optime the onboarding process, thus allowing customer service agents to improve response times, boost customer loyalty and deliver personalized experience by listening to what customers say and write and delivering results to keep banks ahead of the curve.
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