In this fast-paced life, humans are on the run to achieve humongous tasks that were once said to be impossible. Artificial Intelligence is one such thing adding significant values to various industries. The finance and banking industry is one among them that needs to invest in Artificial Intelligence and Chatbots to meet the demands that humans have created. They save time, user-friendly, assists thousands of customer queries and provides round the clock customer support. They are capable of verifying account balances, fund transfer, check interest rates, and more, seamlessly. The recent integration of AI services with NLP provides a more realistic, human interaction making it difficult to differentiate between an AI-powered chatbot and a human.
Why Chatbot now than ever?
According to Gartner, chatbots will be handling at least 85% of all customer service interactions by 2020 and juniper has quoted chatbots will be responsible for over $8 billion annual cost savings by 2022. Customers expect a seamless yet personalized experience while they use online and offline banking channels. Chatbots fulfils these needs using machine learning and artificial intelligence.
The finance industry has adopted chatbot implementation for the following reasons:
Effective – Chatbots are intuitive and easy to use where no download is required. They provide personalized assistance over time through machine learning and AI.
Financial Insights – the advanced chatbots accesses customer data, tracks their spending habits, provides credit scores, manages budgets, and set spending limits. This makes them recommend better management of investments.
Conversational Interface – Customers seek speed and personalized experience when interacting with their financial institution. Simultaneously, customers don’t prefer the impersonal experience of an email or online forms. Thus, chatbots help them with instant chats that is a combination of both live conversation and speed.
Security – In Finance, privacy and security are extremely significant. Chatbots ensures that the ownership of the conversational data belongs to and accessed only by the bank. Chatbots creates a positive impact on customer loyalty and brand engagement, while helping to increase revenues.
Multi-Channel – One of the advantages of the Chatbots are that it can be deployed on multiple channels allowing customers to choose their preferred channel, which helps to increase the use-rate of the solution. Some customers will use a phone call, others through the mobile app or through smart home devices, or WhatsApp or Skype. Therefore, chatbots are capable of porting an app to multiple channels.
Round the clock digital assistance – Bank platforms with chatbots holds a competitive edge in the marketplace since they can retain customers for a longer period.
Prominent Chatbots in Financial industry
Kasisto holds an AI platform which helps financial institutions to create chatbots assisting their customers. When a customer query can’t be addressed by a chatbot, the software sends the conversation to a service employee. Kasisto can incorporate into smartphone apps, websites, and dashboards for employees. The developed chatbots can assist in applying for credit cards, product discovery, managing funds, sending or scheduling payments or updating the terms of a claim.
PayPal provides an AI-powered chatbot that can run through Facebook messenger. The chatbot addresses far beyond the common queries such as declined payments, unauthorized charges, account holds and limitations, refunds, the status of the refunds and new requests. PayPal uses Machine Learning for fraud detection and mitigate risks in its payment platform. Within each transaction, they use hundreds of identifying factors to ensure no fraudulent activity occurs. This further includes chatbot interactions with certain questions asked recurrently within a certain time frame.
What’s Next with Chatbot Development
Chatbots are currently limited in its functionality, from understanding conversational interactions to using customer insight to provide advanced recommendations. Most chatbots are not able to handle requests that require knowledge outside their functional domain.
There is an opportunity for financial organizations to provide a differentiated experience by applying customer insights for advanced recommendations and advice. Here, we can further engage the customers in conversational banking where insights are delivered effectively using contextual decision making. According to PwC, they can provide an engaging experience. Customer engagement with chatbot assistance can enhance customer loyalty without costly manual intervention.
Financial institutions can leverage innovative technologies to integrate chatbots into more advanced uses such as Face recognition to enable zero-click transactions using chatbots, use virtual reality to visually represent the influence of savings for the long-term, to provide an effective status update on a transaction across borders, use IoT devices which are integrated with chatbot technology to converse through voice with customers.
From being just conversational chatbots, they have now turned into personal digital assistants at the hand gesture of every customer. However, the banking industry is still at its inception point concerning the potential of AI, machine learning chatbots and advanced technology. Implementing these advances can help them attain the required insights and apply advanced analytics to benefit their consumer.