Home Finance Financial Services can Save Billions by using Chatbots and AI

Financial Services can Save Billions by using Chatbots and AI

Financial Services can Save Billions by using Chatbots and AI
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Chatbots seem to be the new norm in the banking sector.

Although it has been easy for technologically inclined companies to enlarge their customer base through services that are easy to use, old generation banks are having issues embracing these new ideas.

To keep their position as leading companies on the market, there will be a need for these banks to influence the technologically inclined customers by investing in new developments like robotics.

Chatbots in the Banking sector

As a cheaper alternative to customer services, the banking sector is currently turning towards chatbots.

Unlike banking apps, the development and coding required for chatbots are less. Cloud storage services and messaging apps also save banks the cost of data storage and having to run a channel.

Asides the improved loan support services that traditional banks have to offer, fintech companies like Stripe and Cleo, are now able to compete better with larger banks.

There are various chatbots like the Nuance NINA of the Swedbank and the Kasisto’s Kai used by the DBS.

READ MORE – 10 Applications of Machine Learning in Finance

READ MORE – Top 25 AI Software for the Banking Industry

Chatbots in the Financial industry

One industry where the use of chatbots will make the most impact is in the finance industry.

While it will be a good alternative in order to reduce costs, there have been comments from financial services on various limitations.

These include the resources, regulations, and budget necessary to go into this venture.

Rather than using chatbots to augment core products, Fintech companies have built their business around chatbots.

These include services that help set aside a part of a customer’s money as daily savings.

The use of chatbots also extends to identifying fraudulent activities, data analysis, and services to manage wealth for customers.

ERICA, the chatbot used by Bank of America, makes predictive analysis in real-time and sends updates to customers through a channel.

They can check their balances and also offset their debts.

The future of Chatbots

While chatbots may not be a new development, the use of this form of AI recently experienced rapid growth through its application in industries.

Financial services have seen rapid growth as AI continues to make advances, according to BI Intelligence.

Chatbots have become easy to integrate into messaging apps. As these apps become widely accepted, it offers banks a platform to meet their target demographic.

Original source BusinessInsider

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KC Cheung has over 18 years experience in the technology industry including media, payments, and software and has a keen interest in artificial intelligence, machine learning, deep learning, neural networks and its applications in business. Over the years he has worked with some of the leading technology companies, building and growing dynamic teams in a fast moving international environment.