Chatbots in banking are redefining the way people interact with banks. We look at how banking chatbots are improving customer experience.
People around the world are warming up to the idea of using chatbots in banking. Likewise, we are also seeing some of the world’s prominent banks integrating live chats into their websites and using WhatsApp chatbots to engage with their customers.
Some of the banks and financial institutions leading by example are Societe Generale, TransferWise, ADIB and Swedbank.
It’s only a matter of time for others to follow suit.
Banking is one of the sectors that require safe and secure technology to avoid any chances of fraud or mishaps while also providing a good customer experience. Chatbots in banking can help with both.
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According to a research, by the end of 2022, the banking system will automate approximately 90% of its customer interactions. It indicates that the banking chatbots have seen a positive response from the customers and expect to see an increase in demand.
With the rise in digitisation and the increase in demand for online services, the need to have online help is high.
This is where Conversational Banking, where chatbots perform banking functions comes into play. For example, the AI chatbots in banking allow customers to use banking services even on the holidays or after working hours.
Potential uses of chatbots in banking leading to better experiences
While one talks about the banking industry, it is truly vast. From account maintenance to managing insurance and loans, there are innumerable services that are offered. In the same way, the potential use cases for chatbots in banking are immense.
We discuss some of the most prominent uses of chatbots in banking that are leading to better customer experience below:
1. Easy to use FAQ
There are various questions that a customer might face related to banking. The question can be about starting a new account, applying for a loan, investing funds or just checking their account balance.
Using an FAQ chatbot in banking websites will let customers get answers to their queries instantly. And even if they have to follow up on their question, instead of being handed over to a new agent (in which case the customer will have to repeat their query), the chatbot can give an update.
A smart AI-powered chatbot can automate up to 80% of the queries. The ML algorithms are built such that every time a customer asks new questions, the AI trains itself to provide a better service next time. This improves the self-service experience too.
2. Relevant information and increased conversions
A bank needs to get new customers to keep growing. Chatbots in banking can help with that. When a customer visits your website, the banking chatbot can greet the user and share the right information or point them in the right direction.
With the ease of use and better presentation of the options, chatbots help the banks offer customised and personalised strategies. This leaves a positive impression on the customer.
Banking chatbots, by asking relative questions, can also profile users. Based on this data, you can qualify leads, send targeted messages and increase conversions.
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3. Timely notifications
When it comes to money, people are very cautious. 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.
AI chatbots can inform customers with this information, right on their preferred channel of communication. With proactive communication, customers trust the bank more. Small actions like this can do wonders for your bank’s image with the customer.
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4. Collect and verify data and documents
Chatbots in banking are not only good for sharing information with customers but also for collecting their consent, KYC documents verification and other data.
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.
Using chatbots, customers can upload their documents online. Bank’s AI can then verify these documents and do this in real-time. The bank can send confirmation right after receiving all necessary docs and schedule an appointment to take things forward.
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5. Quicker help across the platform
With the increasing demand for 24/7 assistance, chatbots can ensure that customers’ service is accessible over all the platforms and all the time. In addition to this, the use of AI in banking assures collaborative assistance across platforms to allow banks to deliver informed value services.
With chatbots, banks can have an omnichannel presence. They can integrate all platforms in one place for better and quicker access. This allows customers to get prompt and easy assistance across social media platforms, instant messaging apps, android apps and websites.
6. Personalised service and financial planner
No matter what the time is, AI in banking allows the customers to get personalised suggestions anytime. In case of emergency, even during the holidays, the chatbots’ use allows the customer to seek personalised advice based on their portfolio.
Customers can also select the language they prefer while chatting with banks. This way, the customer feels more connected with the banks.
On the other hand, chatbots offer contextual messaging. 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.
And if the chat has to be transferred to a human agent, the customer will not need to repeat the question as the agent will have all the relevant context required to solve the problem.
Suggested Reading: 11 Ways To Automate Customer Support Without Losing Personalisation
7. Secure Communications
Banks face the problem of malicious activities when it comes to online transactions and communication. Chatbots in banking come to the rescue by alerting the customers instantly about any suspicious activity. Chatbots can also verify a customer’s identity through two-factor authentication.
And if the chatbot is integrated with WhatsApp, the messages are end-to-end encrypted. So the customers prefer chatting with banks on this platform as there’s one less thing to worry about.
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). This leads to fewer fraudulent activities.
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8. Easier to give feedback
For any bank to grow, it is essential to secure feedback and work to improve. With the power of conversational AI, chatbots can ask the right set of questions to customers, without them getting bored. This process is faster and more engaging.
What’s also important is that chatbots can get feedback instantly, when the matter is still fresh in the customer’s mind.
The chatbots’ feedback allows the banks to know the aspects that require improvement compared to others. The AI in banking allows the use of technology and information to get feedback and create better opportunities.
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Chatbots in banking: a new customer experience
To conclude, banks today are serving a wide range of customers, of which the majority are the millennials who prefer the tech-savvy approach.
Chatbots in banking provide the customers with a customised and personalised digital environment for quicker and simpler use. After all, chatbots analyse the banking habits based on which they can suggest the best recommendations to meet the customer’s needs most efficiently.
There’s widespread use of chatbots across industries, particularly in banking. And considering the rising competition, customers are looking for banks that provide a good experience. Now is the time for banks to find innovative ways to retain their customers.
At Verloop.io, we’ve worked with many banks and financial institutions on various use cases to smoothen the working process. If you’d like to know what you can automate for your business and how you can ensure a delightful customer experience, give us a call.