As the business dynamics go roller-coaster in the banking industry, customer expectations are changing at an unprecedented rate.
Even though digital or app-based banking and RPA in banking & financial services have taken over the BFSI industry, the tech-savvy customers want more – they want to progress towards a seamless banking experience on a daily basis with a personalized feel through human touch.
As a result, more banks are attempting to design a conversational strategy in order to provide a tailored customer experience while freeing up personnel to handle more difficult issues.
The Future of Digital Banking
As Covid-19 has sped up the use of these technologies, with people getting dependent on them even more, the need for the bank to digital transformation is getting ardent. Despite the rise of internet banking, banks had never anticipated not having face-to-face interaction with customers for an extended period of time or having employees working from home. As a result, banks are prepared to handle these problems in the future and avoid making the same mistakes. This entails quickly responding to difficulties such as outbreaks and devising solutions that ensure business continuity in the event of a catastrophe.
People’s purchasing habits, communication patterns, and work habits have all gone for a toss, thanks to social distancing. And banks have had to lessen their reliance on humans to become a lights-out business that fulfills client needs for 24/7, omnichannel access to services.
Banks must spend in strengthening their touchpoints with consumers outside their branches or outsourced call centers, whether it’s for processing transactions, consulting information, or obtaining customer care. And technology has truly turned into the savior here, with digital solutions providing the much-needed competitive advantage to them.
Why Should Banks Invest in Chatbot Services?
Chatbots can help banks and financial institutions streamline daily operations and improve overall performance.
- Improving Customer Service
Conversational AI chatbots are the future of digital banking. Certain fundamental components of customer care and support, such as speed, access to information, and pleasant interactions, are slowly becoming more viable with the introduction of banking chatbots. - Customized Banking Services
Customers are increasingly demanding personalized services that are suited to their specific demands. Personalized experiences and services are expected by the majority of the users.Chatbots use client data to provide a completely customized digital banking experience that is personalized to their specific needs. - Lower your expenses
Chatbots implemented across the digital banking and healthcare industries might save more than $8 billion per year by 2022. According to some estimates, traditional financial institutions might save $1 trillion by 2030 by implementing artificial intelligence and cutting costs by 22%. - More Effective Risk Mitigation
Conversational AI chatbots can help manage and simplify the process of reviewing vital data about prospective customers’ loans, market trends, and the borrower’s most recent financial actions, as well as generating credit reports and offering risk advice. Chatbots help detect fraud and streamline processes by reducing human mistakes. - Increase Work Productivity and Reduce WorkloadCustomers’ waiting time to reach out to the teller or sit on the phone wringing their hands is reduced when an AI chatbot can handle their questions. Instead of answering basic consumer inquiries, agents aided by AI smart bots may focus on resolving complex issues.
To know more about banking leaders’ take on leveraging RPA, read our blog
Chatbot Use Cases in Banking Industry
Now that we know the benefits, let’s refer to the top banking-related chatbot use cases that have improved daily operations and the omnichannel client experience.
- Money Transfer
Chatbots are used to pay bills, track money transfers, and schedule or cancel payments. Chatbots can also be used to charge prepaid cards and pay off credit card bills. - Check Your Account Balance
Within seconds, customers can ask chatbots to check their account balances. AI assistants may also assess account balances and alert consumers if their accounts are going to fall below a specific limit. Customers can better manage their accounts without having to log into their e-banking account or call their bank. - Send Notifications and Alerts at Appropriate Times
Chatbots can provide important reminders and notifications on a regular basis, such as bill payment deadlines or the delivery of specific financial transaction paperwork (e.g., loan applications). They can even provide vital alerts, such as financial updates and changes in credit scores.These push alerts and notifications may make customers aware of the information they were previously unaware of, leading to increased use of digital banking services and higher customer satisfaction. - Keep Track of Transactional History
Bots can assist users in better management of their money by summarizing their transactions and providing a recurring weekly or monthly report on expenditures. Chatbots can send rapid alerts when a payment, withdrawal, or reimbursement occurs in the account. - Investigate Suspicious Activity
Users frequently come across a questionable activity that could jeopardize their bank accounts and cash. Customers can receive notifications and assistance if their account is hacked, and they can contact operators on a first-come, first-served basis with conversational banking.This is one of the most important applications for chatbots in banking because it protects account holders from suspicious and fraudulent activities while also safeguarding their hard-earned money. - No-hassle Application for Upselling
Chatbots can be used to apply for services like loans, new cards, and incentive schemes. It can give customers information like a list of documents that must be submitted in order for the operation to go well.Consumers will receive responses to their questions after completing the forms. In some ways, each minute saved equates to a more efficient banking system and a better customer experience.
- Customer Service with a Single Tap
Chatbots increase operational efficiency by automating customer service. In banking, They can improve the omnichannel customer experience by reducing response times and allowing customers to get their queries resolved quickly. - Simple Lead Generation
The use of chatbots in the banking industry has streamlined the entire lead generation process. The chatbots are installed on the bank’s official website/app and interact with customers to see whether they are interested in purchasing products from the bank.Following the initial interaction, the ‘leads’ may be submitted to the appropriate bank team for further follow-up in order to complete the transaction. When compared to traditional methods, banks have seen a significant increase in the number of leads obtained through conversational banking. - Help with Personal Banking
Chatbots can provide consumers with a variety of useful information, including spending trends, a year-end overview of recurrent expenditures, and charges for specific months or locations. They do analyze data to act as financial advisors. This is one of the potential uses for chatbots in banking, and it’s especially useful for those who don’t have access to financial advice owing to a lack of funds or a lack of location. - Add the Secure Factor
Chatbots enable users to make quick, painless payments in a matter of seconds while maintaining the highest level of security and data protection. Conversational banking chatbots make the payment process faster, safer, and more secure.
Banks must select a platform that can produce the desired results.
Customers’ banking experiences can be transformed by chatbots, but banks must select the correct platforms to deliver the capabilities that satisfy new client demands. Chatbots enable banks to communicate with their clients on their preferred channels at any time of day. Several integrations can improve customer support by automating end-to-end operations with enhanced FAQs and omnichannel chatbot capabilities that leverage symbolic AI to power their Natural Language Processing technology, allowing it to understand human languages in all of their varieties.
Customers can interact with banks by accessing information, checking accounts, and applying for cards or insurance without needing to visit a branch. Banks can also cut support expenses and discover how chatbots can help their agents by reducing the number of inbound contacts by 40% on average and providing agents with customer information when queries are escalated.
[Also Read : What is RPA in Banking and Finance ? Use Cases, Benefits, and Challenges in 2023]
With RPA in banking use cases, industry players are boosting operational efficiency, exploring new avenues for innovation, and providing an empathetic customer experience. AutomationEdge is revolutionalizing the BFSI sector by empowering its players to gain the edge with cutting-edge autonomous communication using RPA tools and chatbots. If you belong to the sector and looking for robust RPA tools or chatbot solutions, request a demo with our expert or visit www.automationedge.com.
