How Chatbots in Banking 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 chatbot to engage with their customers. 

Some of the banks and financial institutions leading by example are Societe Generale, TransferWise 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 frauds or mishaps while also providing a good customer experience. Chatbots in banking can help with both.

The banking industry involves thousands of financial transactions every day and requires monitoring and assistance to avoid any mistakes. And, since this sector directly interacts with the customers, the need to improve the customer experience is relatively high.

With the rise in digitisation and the increase in demand for online services, the need for online help is high. This is where chatbots come into play and function in the banking sector. For example, the AI chatbots in banking allow customers to use banking services even on the holidays or after working hours.

Chatbots have seen a technological advancement that is changing most industries’ landscape, including the banking sector.

According to research, by the end of 2022, the banking system will automate approximately 90 per cent of its customer interactions. 

Some of the most prominent uses that are leading to better customer experience are listed 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 a 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 per cent 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 (or any business in that case) 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.

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, 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.

4. Collect and verify data and documents

Chatbots in banking are not only good for sharing information with customers but also collecting their consent, KYC documents 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 per cent of consumers will shift their visits to brick and mortar banks with their voice assistants 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 documents and schedule an appointment to take things forward.

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

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.

The author is CEO & Founder, Verloop.io (Customer Support Automation Platform)

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.