Why Do Banks Need Chatbots for Digital Transformation?

Along with other industries, the banking industry has also adopted AI technologies to drive digital transformation in their business. The pandemic accelerated the adoption of conversational AI and chatbot in the banking industry to enhance their customer experience. 

Chatbot technology or chatbot is an artificial intelligence technology that simulates a conversation with a user or customer in a natural language and human-like behavior through mobile applications, websites, and several messaging applications. 

The necessity of a chatbot in banking is increasing progressively, with many businesses steadily implementing it in their systems. They power intelligent customer service, increasing user and customer engagement. 

AI in financial services is helping banks to improve their efficiency, provide a quality and highly personalized customer experience, and reduce costs. Evidence shows that an increasing number of customers, especially millennials, opt for AI-powered services and chatbots rather than human interactions to seek help for financial decision-making and advice.

Let us look at the need for chatbots for banks and their use cases. 

Chatbots in Banking: How will they Transform the Industry?

Here are the three needs and requirements of chatbots in the banking sector and industry. 

 

• The requirement of speed

 

Along with other business sectors, banking also experiences website abandonment. In fact, the abandonment rate in the banking industry is tremendously high, especially for secured and unsecured loan applications. And only a few banks follow up with their prospects or potential leads within a working business day. 

This is why it is highly critical for banks to adopt chatbots to bridge the gap. Chatbots regularly follow up with their prospects on multiple channels and even provide suggestions or solutions on the bank website or on their bank account website. Thus, chatbots offer an enhanced AI user experience. 

 

• The requirement of data and information

 

Banks need and require chatbots in order to collect and deliver the correct and insightful data and information to their customers. Chatbots intelligently store data from customer interactions and provide relevant and accurate information to customers through smart data discovery. Smart data discovery helps customers in getting data and selecting desirable products and services with no hassle. 

The public domain consists of a vast amount of information, making it difficult and time-consuming for customers to search for the relevant information they require. But with smart data discovery, customers can easily find any data or information they need on any banking channel, either through voice or text. 

 

• The requirement of personalization

 

Personalization has huge importance in customer interaction in the banking sector. Many banks have driven the digital transformation in their systems by incorporating chatbots to provide customized and highly personalized customer service. 

Chatbots perform an emotional and sentimental analysis and respond to the customers based on their sentiments, tone, and emotional state of being. In addition, bots also check your transaction history, like transaction category, value searches, and the time period, and provide suggestions on future spends based on your past history of transactions. 

Moreover, banks also help customers pay bills, buy insurance, perform internal and external money transactions, apply or cancel a cheque, and more, making it convenient for customers. 

Summing Up

With increasing progress and development in artificial intelligence (AI), the future of chatbots in banking seems promising. Banks understand the importance of providing the correct and personalized data and being available to the customers 24×7, any time, any day. 

Chatbots are in for a longer time in the banking sector, and for good reasons. However, it is essential to buy from leading and reliable providers to ensure the quality of service. You can check out the chatbot services from providers like interface.ai, which help banks and credit unions reduce operational costs by delivering intelligent AI solutions.