Сhatbots in Banking

The future is now. Chatbots prove it. Chatbots have undeniably taken various businesses and industries (including fintech) by storm, and this is only the tip of the iceberg. Experts predict 90% of customer interaction in banks will be automated by 2022. According to Insider Intelligence's Mobile Banking Competitive Edge Study, 89% of survey respondents said they use mobile banking. Further, a massive 97% of millennials indicated that they use mobile banking. What do mobile banking users want? A positive digital customer experience. What constitutes a positive customer experience? The speed of processing, simplicity, and variety of operations, and professional support. When it comes to these factors, chatbots (automated voice or text response systems) come into play. Banking chatbots are AI applications that automate the relations between the consumer and the bank by perceiving and executing banking transactions of clients. Thus, they offer a revolution beyond communication and create a smooth user experience.

In this article, we will explain why and how chatbots are used in banking and provide several use cases that will give you an insight into the integration of AI assistants into the financial institution’s workflow.

What are the benefits of chatbots in banking?

According to the survey, 44 percent of people surveyed would rather communicate with a chatbot than a real person, assuming it could answer their questions as reliably as a live agent. Indeed, chatbots offer certain advantages both for banks and customers.

Benefits for banks

• Improved employees’ performance

AI assistants provide users with basic information and solve routine tasks, so employees can focus on solving complex problems and not waste time on general questions.

• Reduced costs

Chatbots work 24/7, can serve multiple customers simultaneously. Besides, the integration of the chatbot is cheaper than hiring employees. According to some forecasts, chatbots will be responsible for cost savings of over $8 billion per annum by 2022, up from $20 million this year.

• Fraud reduction

The security problem is one of the most pressing for banks because many financial institutions are exposed to cyber-attacks. Chatbots detect and prevent fraudulent schemes. They ensure the security of customer data as they regularly monitor daily transactions, verify customer documents, and monitor the legality of transfers, and inform customers of suspicious transactions.

Benefits for customers

• Ease of use

Thanks to the ability to integrate chatbots into mobile apps and websites, most banking activities can be done using a chatbot. This improves usability and subsequently enhances the user experience. Thus, chatbots can satisfy the requirement for instant messaging regarding the young audience and suit the needs of elderly people by providing voice responses.

• Personalized client experience

These virtual assistants have access to the full information about the client, and they recognize the customers instantly. Thus, they greet a client by name, offer personalized financial plans, and suggest promotions.

• Fast customer service

Waiting for a connection with bank agents can be a time-consuming process, while chatbots can provide fast-paced communication. They improve the speed of processing requests, access to information, and ensure pleasant communication because their behavior doesn’t depend on the mood.

Potential use cases for chatbots in banking

Virtual assistants can perform various mundane tasks as effectively as live chat agents. According to the survey conducted by Statista, 30 percent of respondents from the United States stated that they found chatbots very effective at resolving their issues, and 54% find that they are somewhat effective. Here are the potential use cases for chatbots in banking.

• Round-the-clock customer support

Chatbots are available 24/7 and can provide consistent basic information about the bank, services provided, account settings, as well as in-app navigation, and answers to the frequently asked questions.

• Feedback collection

Users do not like to fill out feedback forms because it is a monotonous and boring process. Chatbots can make this process faster, more natural, and more fun for users.

• Opening bank accounts

Previously, this process would be time-consuming and complicated, but with the digital opening of accounts through an AI assistant, it can be fully automated. So, the automatic system recognizes the provided documents and checks their reliability, organizes a video call to check the data (this process is carried out in the same chat, and the user does not need to change the communication channel). At the end of the process, the client signs all documents with a digital signature or provides biometric data (fingerprint, face, voice, or iris recognition), and the chatbot processes the information. These authentication methods are reliable and secure, and all data can be easily verified without additional steps.

• Transactions and personal finance management

With the help of a chatbot, clients can perform various financial transactions and manage their finances using text or voice commands. Virtual assistants use automatic speech recognition technology and speech-to-text (STT) technology, collecting information about customer contacts and the most frequent operations.

Thus, the execution of financial transactions becomes a simple and pleasant process, and the involvement of the bank in the daily life of its customers increases. Yojji will help you implement different scenarios, depending on the preferences of your clients.

• Apply for services

Time-consuming processes that involved many documents and the need for signatures are a thing of the past. Today clients can apply for services quickly and easily from the comfort of their home.

For instance, clients can determine the desired loan, provide all the necessary documentation, and sign all the necessary documents online. So, for a home loan, a client sends the relevant data about the house, its cost, the loan amount, and a tax declaration. All documentation is processed automatically, and then the virtual assistant sends the client notification of approval. Besides, chatbots help to issue new cards or apply for reward programs.

• Assist in cases of suspicious activity

Chatbots send notifications about suspicious payments and immediately take action when a consumer asks virtual assistants to take measures (for example, block the card). If consumers complain that their card has been hacked, then AI assistants instantly redirect the request to the support agents.

• Leads

Chatbots conduct conversations with consumers to gauge their interest in a product and purchase intent. Lead data are sent to the appropriate department of the bank to process and complete the sale process. Some brands have seen as high as 600% increase in the number of leads collected using chatbots as exposed to traditional mechanisms.

Conclusion

Thereby, chatbots can benefit any financial organization greatly because they bring your company significant savings and enhance the user experience. If you are looking for high-quality AI solutions, we are ready to develop a custom-made chatbot for your business. Contact us, and our experts will provide you with all the information you need.