What is Conversational Banking?

A new form of digital banking that enables customers to interact with their banking vendors through text and voice channels in real-time. It allows effortless communication, quicker responses, and more rewarding customer experiences.
Conversational banking allows banks to offer personalised solutions to their customers aside from convenience and tailored support.

Why is conversational AI the new face of banking?

The rise of technology has altered customer perceptions and demands across all aspects of life. Its no surprise then customers expect the same in banking operations. Better banking experiences mean more room for self-service, highly personalised interactions, convenience, and accessibility.

Conversational AI-powered chatbots can solve for a number of usecases for smoother banking operations. Conversational AI chatbots can resolve repetitive queries, manage transactions, empower customers to self-serve, provide always available support, and so much more!

Better customer experience:

Conversational AI powered chatbots and voice bots can offer around the clock customer support and better convenience for users. Customer queries are resolved almost instantly and AI can also enable self-service for customers. Aside from this, AI can eliminate a number of manual processes, ensuring a seamless experience for customers.

Improved Customer Experience

Better compliance

Banks require a strict adherence to rules and regulatory laws to ensure financial safety and eliminate the risk of fraud. These regulations are subject to change quite often depending upon the governing bodies. AI is capable of keeping up to date with these regulatory requirements and ensure that banking organizations are updated and aware of compliance laws in the decision making process.

Tap into newer opportunities

AI is a great tool for upselling and cross-selling to existing customers. This is because AI with the help of predictive analytics can read into behavioral patterns and correlations. Understanding these patterns can help banking organizations serve their customers better and even uncover new sales opportunities at the right time. Thai improves revenue.

Tap into newer opportunities
Improved Customer Experience

Improve operational efficiency

One of the biggest applications of AI is that it can be used to automate repetitive manual tasks. For instance, AI can easily automate the process of KYC capture and validation. Instead of having your agents take up such mundane tasks, AI can complete KYC validation in minutes. This leaves your agents with enough time and resources to focus on more complex and more demanding tasks. This increases operational efficiency.
Your go to guide on Conversational AI solutions

Your go to guide on conversational AI solutions

What can conversational AI do in banking?

  • Disseminate information
  • Accelerate KYC validation
  • Intelligent advisory

Conversational AI enables seamless banking operations with:

Chatbots –  With chatbots, banks can offer intelligent and instant support to their customers without relying on human agents.

 Voicebots -Customers can use voice bots to access banking services by simply using voice commands or through their words.

Open the Lines for Better Communication

The benefits of conversational AI in banking

A Complete Guide On Conversational Banking

Enable customers to self-serve:

Customers may often find themselves grappling with questions related to banking processes such as loan applications, investments, transactions, and more. Reaching out to an agent any time such a query arises is hardly practical. Implementing conversational AI powered chatbots can help customers find answers to such FAQs instantly and leave agents with enough time to resolve more complex queries. This improve agent productivity and increases customer satisfaction

Conversational Intelligence

Higher conversions:

Chatbots are great for growing your customer base. They can be used to dispense relevant information and capture customer details any time a user visits your banking website. Customised interactions leave a positive impression on the customer. Aside from this chatbots can segment and profile users for better lead qualification, resulting in increased conversions.

Document validation:

One of the key aspects of banking is to collect important customer documents and validate them to avoid cases of fraud. Conversational AI can be used to collect customer consent and carry out KYC validation in minutes. Customers can simply upload their documents online, get it validated in real-time, and move on to other processes without wasting much time.

Collecting Customer Data
Improved Customer Experience

Around the clock support:

The best part about chatbots is that they can be leveraged to provide always available assistance to customers. Instead of relying on human agents, chatbots can be used to deliver omnichannel support 24/7, providing quicker access to customers.

How conversational banking enhances customer experience

Omnichannel, multilingual customer support

Be where your customers are. Conversational banking allows you to reach out to customers across channels such as Facebook, website, WhatsApp, and more. Aside from this, conversational AI enables customers to interact with banks in languages of their preference, leading to a well-rounded customer experience at every stage.

Conversational Intelligence

Safe and secure communications:

Banks are always at risk of being exposed to fraudulent and malicious activities when it comes to online banking and transactions. Conversational AI-powered chatbots can verify and validate customer identity through two-factor authentication. Chatbots can also alert customers whenever suspicious activity is detected. This ensures all online transactions are carried out with utmost safety.

Personalised services:

Chatbots are capable of collecting important customer data. This can then be used to profile users and better understand their interests and preferences. Based on their portfolio and other aspects, customers can seek out tailored recommendations and services from banks even during holidays without hassle.

Collecting Customer Data
Improved Customer Experience

Better opportunities:

Chatbots can collect customer feedback periodically. This allows banks to analyze what’s working and what’s not. Understanding weaker processes and improving them is key to strengthening customer relationships and creating better opportunities for consumers.

Conversational AI in retail banking

One of the biggest challenges with retail banking is to deliver interactive, engaging, and immediate experiences to customers.

Conversational AI enables banks to provide well-rounded experiences to users at every stage of their banking journey. It can help with lead generation, around the clock customer support, digital sales, customer engagement, dissemination of critical financial information, and much more.

Chatbots and voice bots can revolutionize the retail banking experience by optimizing the customer experience and driving sales. For banks this is a win-win since not only are customers satisfied but the costs and resources required to run support centers are significantly reduced.

Customer self-service

Banking customers often run into issues that may not really need an agent to intervene at all times. For instance, queries related to booking appointments, checking account balances, locating the nearest branch, etc. can be resolved with the help of conversational AI powered chatbots. By training chatbots to pick up the intent from queries and then direct customers to a knowledge base or FAQ, banks can empower customers to solve up to 80% of queries on their own

Conversational Intelligence

Seamless integrations with customer-service platforms

A chatbot can be integrated with any customer-service platform of your support team’s choice. This enables support agents to get a unified view of the customer and deliver meaningful experiences. Chatbots can also hand over the query to agents any time there is a need for a human agent to step in. This ensures continuity in the customer experience.

Re-engage with lost or cold leads

Conversational AI can be leveraged to run re-engagement campaigns through the use of tailored messaging, updates, notifications, and alerts. This way you can bring lost leads back into the funnel.

How Chatbots in Banking Are Improving Customer Experience


Front-end operations

With front-end banking activities, there is a direct impact on the level of customer satisfaction. The objective at this stage is to make the customer experience as effortless as possible since this would be the first touchpoint in the customer journey. Conversational banking plays a major role in front-end operations such as trading, lending, payments, account management, and financial advisory

Conversational Intelligence

Middle stage operations

The middle-stage operations comprise activities such as KYC validations, compliance, authentication, and verification. By automating middle-stage activities through conversational AI, banks can improve customer retention

Back-end operations

This stage has little to do with direct customer interactions and is more about ensuring that banking activities run smoothly. This stage comprises several repetitive tasks that can be automated to improve agent productivity. Back-end operations majorly consist of fraud detection and cybersecurity

Collecting Customer Data

How does conversational AI improve banking operations?

Higher cost savings

Conversational AI can automate several mundane, repetitive operations. This allows banking agents to be more productive and work on more complex tasks. Conversational AI can also automate certain aspects of customer support. This results in higher operational savings for banks.

Conversational Intelligence

Reduction in errors:

Conversational AI-powered chatbots work off of customer data and training models. This means that chatbots are continually learning and improving their responses, leading to lower data errors and inaccuracies.

Better scalability:

The best part about conversational AI is that it is highly scalable. Chatbots can handle huge volumes of support tickets with ease. This reduces the need to expand your support team as your customer base grows, leading to frictionless experiences and better cost savings.

Collecting Customer Data

Success stories and usecases

Scripbox achieves a CSAT score of 95% with FRT of less than ten seconds with Verloop

Scripbox, India’s leading digital wealth manager, leverages Verloop’s FAQ builder to automate responses to commonly asked customer queries. The AI-powered FAQ builder can understand the intent of the query typed by the customer and sends an automated response with relevant information in response.

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Conversational Intelligence
Improved Customer Experience

Kaarva leverages Verloop’s chatbots to support, generate, and qualify over 100,000 customers

Kaarva uses WhatsApp Business APIs to interact with all its customers through a single number. With Verloop, this fintech business can automate conversations, improve customer acquisition, and even offer post-sales support.

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Setting up conversational banking: A step-by-step guide

Map out the customer journey

Evaluating your customer’s journey is important to identify the channels customers prefer to use when interacting with their banking vendors. Figuring this out will help you deliver consistent and meaningful experiences in every customer interaction.  

Conversational Intelligence

Narrow down the FAQs:

Identifying the different types of commonly asked customer questions can help you train your conversational AI-powered chatbot to answer these queries without a human agent. The chatbot can redirect users to the correct information through a knowledge base or a help center. In cases where the query is much more complex, chatbots can be trained to loop in an agent when required.

Evaluate possible vendors:

Depending on your business objectives, you need to identify and shortlist your conversational AI vendors. You need to consider factors such as scalability, functionalities, vendor support, and of course, costs  

Conversational Intelligence

Implement and track the ROI:

Once you choose a vendor, the next step is to implement and then set up metrics to track the success of your conversational AI tool. For instance, has the average resolution time decreased, have CSAT scores gone up, etc?
If you’d like a detailed consultation to explore how conversational AI can amp up your banking operations, simply schedule a free demo with our experts.

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Final Thoughts

As digital banking experiences continue to proliferate, conversational banking will become a critical factor in developing cutting-edge banking experiences. It enables banking vendors to elevate customer service and offer seamless banking experiences at optimal costs. This is important in building lasting relationships with your banking customers If you’d like a detailed consultation to explore how conversational AI can amp up your banking operations, simply schedule a free demo with our experts.