In recent times, the banking industry has experienced increased use of chatbots, machine learning, and artificial intelligence in response to more consumer expectations.
As a result, credit unions and banks globally are trying out new applications as well as deploying news solutions in an attempt to boost customers’ overall digital experience.
In most cases, chatbots are created to enable two-way communication by replacing channels including text, email or phone. Their objective is mainly to offer transactional support and quick service.
Bots can undertake the most basic activities including handling loan queries, bank account details, and balance inquiry.
Also, chatbots are projected to help banks save billions of dollars in the coming ten years.
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Why Use Chatbots?
With the path taken and channels used by banking customers being excessively complicated today, coming up with a chart of one customer’s journey can be a daunting task.
As such, it has become quite difficult for banks to give customers a personalized experience.
Nevertheless, chatbots provide personalized and quick interactions between banks and their customers by utilizing artificial intelligence and machine learning as the foundation. Here is why banks should use chatbots for consumer engagement.
- Easy to use. They are easier to use and more intuitive than traditional banking applications.
- Cost-saving. They are affordable to create and maintain compared to their human counterparts. Chatbots do not require complex coding in comparison to standalone banking applications.
- Round the clock support. Chatbots allows 24/7 instant chatting, especially when integrated into a website.
- Financial advice. Since advanced chatbots allow access to all a customer’s banking data, they help customers make informed financial decisions.
- Conversational interface. Chatbots facilitate instant chat, which is much fast and less tedious compared to a phone call.
Disadvantages of Chatbots
- Not all consumers are comfortable or familiar with using chatbots.
- Languages and accents limit them.
- Expanding chatbots capabilities relies on the ability to partner with organizations or hire teams that are familiar with the technology.
- Their dialogue capability can only recognize a particular format of questions, established by the development team.
- They cannot reply to multiple questions simultaneously.
Chatbot Implementation Sampling in Banking
- Capital One
Capital One has a text-based chatbot dubbed Eno. It enables customers to manage their finances through their phones.
- Bank of America
Well-known for being a market leader in both AI implementation and mobile banking in the US, Bank of America has Erica. The chatbot sends notifications to customers, suggests how to save money, and provides balance information among other things.
SEB is known for releasing Aida, a female chatbot meant for customers. It also made a follow-up chatbot for its employees called Amelia.
What’s Next for Chatbot Development
According to PwC, chatbots can provide excellent user experience by using sentiment and advanced natural language processing abilities to gauge voice accent, emotions, and tone. As such, the solutions offered will be customized to the conversation.
PwC also recommended banks to use other innovative technologies to incorporate chatbots into additional advanced uses, for instance combining VR and chatbots to demonstrate the benefits of long-term savings visually.
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