Chatbot in Banking Examples, Best Use Cases and the Future

Moreover, Juniper Research estimates that chatbots can cut operational costs for businesses by up to $7 billion globally by 2023. Combine this with the Accenture report that indicates AI could add $1.2 trillion in value to the financial sector by 2035, and the implications are staggering. Chatbots for banking are essentially conversational chatbots deployed by banks to enhance customer experience on all digital banking platforms.

NOMI is a smart chatbot that eases banking tasks for customers and makes account management easier. It sends quick reminders and alerts to make bill payments easy for regular users. Customers can expect tailored insights based on their banking or spending habits. Plus, it has tools for customers to smoothly manage day-to-day spending and get a budget recommendation. Erica is an AI-powered virtual financial assistant available within the bank’s app. It’s a good bank bot to help customers manage their money more easily and in a smooth manner.

Build a Dialogue Chatbot using Azure OpenAI and Langchain

In this matter, chatbots are much more efficient in providing customized service to each customer by using customer data (after taking consumer consent to access their data). Chatbots in banking industries can help customers with issues that can be non-complex but urgent. These issues include unlocking or locking cards, resetting, checking bank statements, and completing fund transfers.

In fact, over 43% of customers in the USA use chatbots when dealing with their banking problems instead of going to a branch. That being said, messaging clients via financial chatbots can help your business slash customer service costs. This is because the organizations can use bots for fast resolution of issues without the need for support agents’ involvement. Your clients will never miss out on their payments or go over their budget again. This is because finance bots will send them reminders for bills and notifications for the balance. The users can also use this feature to set credit card payment reminders and build their score easier.

Top 5 banking chatbot best practices

There are simpler alternatives, such as rule-based bots and choice-based bots that have their own advantages. Though such types of chatbots have severely limited functionality, they utilize a more practical and efficient approach to solving problems. By using pre-programmed dialogue paths and pre-written responses, such bots do not need NLP to provide a swift answer, restart a dialogue, or switch the user to a customer support officer. As we begin our look at the benefits of AI-powered chatbots in banking, it’s worth starting with an obvious one, and the reason that chatbot use is growing – customers want to use chatbots! A recent study showed that 70% of consumers are either already using or interested in using chatbots for simple customer service.

With more work from home and online services, customers do not want to visit the bank’s branch anymore. Research by Capgemini suggests that 70% of consumers will shift their visits to brick and mortar banks with voice banking over the next three years for better support and servicing. Based on this data, you can qualify leads, send targeted messages and increase conversions.

Chatbots offer more than quick solutions; they offer personalized interactions. By analyzing a customer’s past interactions and preferences, chatbots can provide custom solutions and suggestions, enhancing the overall customer experience. We’re not just in a digital age; we’re in a “remote everything” age where the click of a button or a simple voice command can do wonders. Forget about the days of 10-minute hold times; we’re down to resolving customer queries in a mere 4 minutes thanks to the magic of AI chatbots. Banking chatbots can automate common activities like sending money, moving money between accounts, and paying bills.

HDFC Bank’s EVA (Electronic Virtual Assistant) is an AI-powered chatbot for banking developed with the objective of providing better and faster service to HDFC’s customers. Leveraging the power of Natural Language Processing (NLP), EVA understands user queries and fetches the requested information from thousands of possible sources, in a matter of milliseconds. Accessing information regarding branch addresses, IFSC codes, loan and interest rates etc. are a few of the common customer queries that EVA services. The bot has been deployed across a number of platforms, including Google Assistant and Alexa. EVA has answered over 5 million queries with over 85% accuracy – holding over 20,000 conversations daily with customers across the globe.

They can answer commonly asked questions, check the customer’s account balance, and offer financial advice amongst other functionalities. Financial chatbots can also handle multiple requests coming from a variety of channels, at the same time. Furthermore, chatbots can handle multiple queries simultaneously, enabling them to handle a high volume of customer requests efficiently. This can save banks time and money, as fewer customer service representatives may be needed. For instance, the chatbot of Bank of America’s virtual assistant, Erica, can help customers with a range of tasks, such as checking their account balances, making transfers and even disputing charges.

• BDO wanted to transform the way audits are run by making the collection and exchange of data between client and auditor more seamless.
• But when done right, the benefits that ‘AI bots for banking’ can bring to your banking services are immense and immeasurable.
• With a dedicated chatbot for your bank, now do quick customer onboarding, enable everyday banking tasks.
• Banks need to engage with their customers in the right way and in the right channels.
• This isn’t just your grandpa’s automated system; we’re talking about intelligent bots with a deep understanding of human language.
• Answers that are 100% scripted, don’t allow flexibility when it comes to regionalisms and different ways of asking questions.

To enhance your cybersecurity posture, you can read our cybersecurity best practices article. Chatbots can engage with the visitors on the bank’s digital platforms to generate leads and assess those leads with relevant questions. From the historical point of view, digitization of banks began with ATMs and then telephone banking.

But by providing customers with a  contextual banking experience, banks can drive personalized promotions and engagement in real time. Contextual banking is a model that offers a connected banking experience to customers, with offers and updates at the right place and time. Apart from providing regular updates and promotions, contextual banking also serves as an efficient tool to aid with upselling and cross-selling.

A non-AI chatbot can be an effective tool for answering if-this-then-that or yes and no questions. With carefully preset rules, these chatbots can handle most simple banking queries. Instead, banks should look to conversational AI chatbots that use Natural Language Processing (NLP), Natural Language Understanding (NLU), and Machine Learning (ML) to deliver a more personalized human-like experience. Using natural language processing (NLP), AI chatbot banking solutions provide a whole new way for banks to communicate with customers in a cost-effective manner, paving the way for a revolutionised era of customer service.

SOLUTIONS

Designed as an intelligent and insightful AI bot, Capacity’s focus lies in providing 24/7 automated support to customers. AI bots have stepped up to construct this bridge of personalization in banking. The dynamic world of digital banking, though filled with endless possibilities, also lurks with the dangers of fraudulent activities. AI bots have emerged as powerful knights in protecting the fortress of banking. Make sure your AI bot is immune to cyber-attacks and offers a secure environment for customers to conduct their banking activities. While we’re gushing over the wonders of technology, let’s not forget that your AI bot is a representation of your brand.

They keep this information secure and use it to give valuable financial advice to users, including set spending limit reminders, payment reminders and bits of informational advisory for education and habit development. Sentiment analysis is a technique that allows businesses to gain valuable insights into their customers’ thoughts and feelings. It includes analyzing social media posts, reading customer reviews, and also chatbot conversations.

• Customers can also verify the authenticity of banking chatbots as its usually available on the bank’s website, mobile app or WhatsApp (which shows a verification mark).
• Some clients are hesitant when it comes to giving feedback to their bank due to privacy concerns or feeling that it won’t make a difference anyway.
• Seamlessly combine RPA solutions with artificial intelligence in intelligent process automation for unprecedented efficiency, productivity, and agility.
• It consistently learns from customer interactions to deliver responses that are more accurate, relevant, and quick.
• The chatbot-based automation does a lot for us – trigger a conversation, resolve customer queries, and even generate business opportunities that we can redirect to our sales executives.

Whether it’s improving customer service, ensuring data security, or enhancing operational efficiency, the potential of AI bots to revolutionize the banking sector is immense. In simple terms, chatbots are digital systems designed to mimic human conversation. They use AI technology to understand and respond to user input in a natural, conversational manner. AI is not just about robots and futuristic technologies anymore; and it is already making our everyday lives easier and more streamlined.

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