Unique use cases, examples and exciting advantages of using banking chatbots
Sep 29 • 6 min read
Although the pandemic has been harsh for many businesses, conversational automation has shown the potential to transform customer service and internal operations, easing the transition to the contactless future. In comparison with other industries, banks continue to use intelligent chatbots to expand their reach, lower costs, and meet the ever-growing customer demand.
According to Juniper Research, banks that use chatbots will see a cost savings of $0.70 per customer interaction, cutting business costs by more than $8 billion per year by 2022.
Even before the pandemic, customers had fewer reasons to visit the bank branch, given the popularity of online banking. From transferring funds from one bank account to another to keeping tabs on recent transactions, internet banking has lots of useful features to become a norm among fast-pacing tech-savvy consumers. Thanks to the pandemic, financial institutions are in dire need of finding solutions that provide an uninterrupted, positive digital customer experience.
Banks like Barclays, ATB Financial, Societe Generale, Capital One, and Bank of America have been early adopters and started experimenting with AI-powered conversational chatbots. For instance, the popular banking bot "Erica," launched by BoA in 2018, has served over 10 million users and could understand almost 500,000 question variations by mid-2019.
Retail banks can leverage conversational chatbots to provide robust services to their customers and stay ahead of the competition.
Save money and time
Chatbots can promptly answer frequently-asked queries, allowing banks to assign their human operators to solve more complex customer services problems, saving time and money. Furthermore, human agents can rely on chatbots trained using machine learning algorithms to get quick replies to advanced banking questions, improving productivity and efficiency. Reports suggest traditional banks implementing AI solutions will cut 22%, totalling $1 trillion in costs by 2030.
Increase loyalty and adoption
Banks can embed chatbots into their websites or apps to educate potential customers about the bank's new product or service offerings. Whether it is by asking if a website visitor would like to know about the loan application process or opening a term deposit, a chatbot can engage potential and existing customers by providing insightful information in a timely and less intrusive manner.
Maintain brand voice
With the conversational bot builder platform, banks can ensure that the chatbot is consistent with their brand voice across various channels, including their banking app and website. Hence, ensuring brand affinity for more loyal and dedicated customers.
Banks are tapping into conversational solutions, powered by AI and machine learning algorithms, to provide their customers with personalized and engaging experiences. There's so much more a virtual banking assistant can do. Let's dive into some of the perfect use cases of chatbots in the banking industry.
1. Applying for services and lead generation
With email campaigns and cold calls seeing a decline in positive responses from prospective customers, chatbots offer a more appealing touch to the entire process of lead generation.
Whether it is for a loan application, new credit cards, or redeeming reward points, chatbots available on the bank's website or app allow consumers to start a conversation and enquire about the products and services. Additionally, to make the experience seamless, a lead generation bot informs customers about all the prerequisites to avail a service so that they can fill the form and get immediate assistance.
Upon getting personal information from a potential customer, the bank's customer acquisition team can follow up and complete the sales. Compared to the traditional methods, banks have seen an increase in the number of leads collected using banking chatbots.
2. Automated support for frequently asked queries
Chatbots are available 24/7 to allow banks to solve customers' problems whenever they arise without the expense of maintaining a fleet of human operators. Starting with answering frequently asked questions and automating repetitive tasks, conversational banking chatbots use advanced algorithms and machine learning to learn and refine themselves to solve more complex commands.
NLP-powered chatbots can be plugged across many customer touchpoints, including social media platforms like Facebook Messenger, websites, apps, and other platforms. Banks using customer support bots witnessed a decrease in the volume of queries, especially basic repetitive questions that were addressed by their call centre agents and staff.
Streamlined uninterrupted customer support process leads to speedy response and allows customers to get questions answered even during non-banking hours or over the weekends, enhancing customer experience and increasing trust in the respective bank.
3. Banking activities on-the-go
Whether your customers want to send money, check account balances, or set up recurring payments, virtual banking assistants allow them to do all of that and more from the comfort of their homes.
Additionally, users can manage their accounts without visiting the bank branch or waiting in the long call centre queue. Such banking activities include setting transfer limits, getting alerts when the balance goes below a certain amount, updating personal information like phone number or address, paying off credit bills, and more.
4. Quick location-based information
Many banking-related questions require a response based on the location. For instance, if a user asks for the nearest ATM, a banking chatbot can ask the user to enter the name of the place they're looking for or enable their GPS. A virtual assistant can capture location information via GPS available on a smartphone and provide the answer accordingly.
5. Send payment reminders
Chatbots are beneficial to remind customers to pay their bills before the deadline or submit specific documents for any financial services. You can send these reminders as push notifications to increase customers' usage and understanding of banking services.
6. Gathering valuable customer feedback
AI chatbots rely on a conversational interface, making it easier for banks and other financial institutions to gather customer feedback, helpful to make service improvements. Instead of the formal and old-fashioned way used in surveys sent over email or physical mail, customers prefer interacting with businesses that communicate more casually.
Further, bots take an interactive approach instead of the conventional use of lengthy, static feedback forms, boosting customer engagements and increasing feedback from customers.
7. Monitor transaction history
Consumers can use chatbots to get an overview of their transactions. They can ask for weekly or monthly spending reports and even spending for a specific date, helping them make better financial decisions. Moreover, users can ask the chatbot to send alerts whenever there's a charge, deposit, or refund made to their bank account.
8. Send alert for suspicious activities
With increasing phishing attacks, customers are prone to hacking and face threats to their bank accounts and funds. In such cases, chatbots can send notifications to customers informing them of unauthorized access to their account and directing them to a live agent to fix the issue.
9. Provide financial insights
Apart from providing updates on withdrawal and deposit, as mentioned above, banking assistants can provide consumers with valuable insights, such as spending habits, an overview of categorize-wise recurring transactions, and charges on a particular month or with a specific merchant.
One of the fascinating use cases of chatbots for financial institutions, financial advisors-like chatbots collect and analyze data to help people who have difficulty accessing such services due to their budget or location.
With customer expectations for digital banking services on the rise, banks need chatbots to meet the growing demand or risk losing customers to other forward-thinking banks. Many banks and other financial services institutions have successfully implemented conversational solutions like chatbots to make things easier for their staff and customers.
Erica by Bank of America
Erica is an AI-powered virtual assistant available only via Bank of America's mobile app and can cater to many customer service requirements, including providing balance information, sending notifications to customers, giving credit report updates, sharing financial advice and money-saving tips, and other simple actions.
EVA by HDFC Bank
HDFC Bank's electronic virtual assistant, short for EVA, leverages natural language processing (NLP) to understand user queries and provide competent service to HDFC's customers. Some of the common queries catered by the assistant include accessing information regarding branch address, IFSC codes, linking Aadhaar card, account services, loan and interest rates, etc.
Eno by Capital One
Capital One's ENO is also exclusively available on the bank's mobile app and leverages machine learning to learn and adapt to customer behaviour over time. Customers can use the AI chatbot to pay bills instantly, check transaction history, get messages about their account balance, or keep track of their credit limit.
Build a virtual banking assistant with GenieTalk.ai
GenieTalk.ai's conversational banking solution allows banking and financial services providers to deliver next-generation financial experiences to their customers. When it comes to adapting AI-powered chatbots and voice bots, our robust platform has helped banks engage and delight customers at every stage of their lifecycle.
You can learn more about how GenieTalk.ai is helping banks and other financial institutions to serve at scale and enrich the digital banking experience of their customers.