Chat Banking: The Future of Financial Services

December 17, 2018

AI chatbots are not being used solely for communication purposes. It would be right to state that chatbot app development is bigger than what may seem to the general public.

Chat-Banking-Future-Financial-Services-SignitySolutions

On the other hand, financial bodies are considering AI chatbots to be the right customer-facing tools. Big names in the financial world, such as American Express have already started using bots to connect an eligible US Card to Facebook Messenger account to get the messages in Messenger app for every purchase a cardholder makes. And also, it is possible to get additional information about the new offers, card benefits, and much more. Along with this, an Amex advisor can answer your simple questions. If the bot is not able to answer, it will ask to chat with a customer care officer. Selecting the top chatbot development company enables in delivering an AI-based safe and secure banking bot.

So, getting back to Chat Banking, what actually it is?

 

Consider one day you are planning a trip with your friends on your WhatsApp chat group. You wonder whether you have enough amount in your current account to cover the expenses of the trip. Instead of going through your bank’s app or internet banking, you can find your bank as another contact saved in your WhatsApp, so you just type “Balance,” and bank immediately replies back with your current account balance. Next, you want to transfer money to your friend for all the booking. So again, you text “Pay cash 4000” and the bank transfer that amounts to your friend’s account.

It is not about the technical integration that is connecting the various service providers but, the seamless user experience that the app is offering. Currently, the financial service providers are putting users at the forefront by offering these services without requiring complex transactions or interactions.

The 21st century leaves no space of old-schooled banking as the modern world is fast-paced and technology-driven. Just imagine the process of getting loan twenty years ago. First, the customer had to call an advisor during the working hours and then he had to go through a pile of paperwork. Finally, he used to wait for a long time for the bank to decide whether he is eligible or not. Let’s admit – nobody wants to go through this old process. And while the chatbots are really handy, the process relies totally on automation, removing all the inefficiency.

How are big financial institutions close to making Chat Banking a Reality?

 

While Chat Banking is in the early stages, the evolving technology has already been in the market for years. Yet firms are still struggling to develop mobile apps that are versatile enough to hold a relevant conversation. Mobility service providers are still trying to build apps that can continue to learn the behavior and the preferences of individuals, and adapt accordingly.

According to a recent study by IBM, 70% of the consumer respondents who did not adopt voice command capabilities cited the reason as – Disappointing experience. This is because the chatbots are pre-programmed with defined questions and answers. Therefore, a conversational style chatbots are preferred and using cognitive engines, but these kinds of AI chatbots are just emerging in the financial industry.

Gartner stated that by 2020, customers will manage 80% of their transactions with businesses with no human interaction. 

Organizations like Bank of America uses Erica, the digital assistant provider, updates the customers at real-time about their finances. The predictive analytics and cognitive messaging help the customers make payments, check the balance and pay down debts.

The other bank is Swedbank, whose digital assistant is Nina. The bank claims that Nina resolves 40,000 conversations a month that is 81% of the total issues. At the moment, Nina operates only in Sweden. Now, the bank is planning to extend its services to the Baltic markets too.

Use cases of Chat Banking 

 

1. Frequently Asked Questions – 

Chat banking is capable of providing automated services, such as answering common questions, profile or account details, simple bank-related queries,  and upcoming offers or loan details. This will free up your resources and give them an opportunity to work on tasks that are more important and require more research or logical reasoning. 

Chat banking bots can act as your financial concierge and answer simple and common questions instantly without the user personally visiting the bank or withholding the long IVR  

2. Feedbacks

As every brand-conscious financial institute looks for all the pitfalls in their services, they take up customer feedback to continuously monitor their company’s performance and make the desired changes. 

With Chat banking, financial institutes will not require a specific tele-team for the collection of feedback. But rather automate their systems with bot who can easily take-up feedback, without any wastage of resources or costs. 

3. Customer Support –

With smarter customer care chatbots, companies are now capable of having smarter and compelling conversations with their customers. This means companies can handle a variety of customer queries with an automated feature. 

These bots can be placed on the most accessible touch-points like social media, websites, or apps, so the users can easily contact them and get an instant direct solution. 

4. Proactive Recommendations –

Digitally savvy customers in every industry sphere are testing various companies that could offer them insights and recommendations for better customer experience. Similarly, they are showing interest in the financial space to look for insight and recommendations in investment options, insights on their money, ways to utilize or increase credit card points, and a lot more. 

5. Fast Authentication –

Companies are experimenting with chat banking to initialize faster authentication process based on voice and video documentation. Authentication is an important aspect of the finance industry mainly because of its security issues. By making this process easy and automated, businesses can expand their corporate boundaries and improve their customer satisfaction rates. 

Automated authentication via chat banking can prove to be a powerful security mechanism. Since every authentication policy will be blindly followed and there will be no space for discrepancies. 

In a nutshell, AI chatbots can additionally be used for the following purposes –

  • Getting and Processing orders from social media platforms
  • Providing banking Details
  • Notifying clients about the upcoming payments
  • Creating realistic budgets for the consumers

Implementation of chat banking is still in its infancy phase. Big financial institutes are still exploring ways to automate their takes via a bot and make their customer experience more powerful and convenient. 

A lot of industry leaders prefer AI consulting initially to expand the functionality, in streamlining their systems. 

And, here’s the infographic.

infographics-chat-banking-SignitySolutions

Takeaway

 

Mobile phones have offered a lot of opportunities for the finance world. Consumers these days are relying on mobile devices. And in particular, mobile chat agents provide a compelling avenue for enhanced customer engagement. This is still a growing area with a long road ahead. But the reason to pursue is the sophistication of chatbot development that is continuing to increase as the knowledge base grows.

At Signity Solutions, we are helping financial sector including banks to build a chatbot according to their requirements, so, if you are looking for a company providing professional chatbot development services, hire our outsourcing team.

Priyanka Mehra

Priyanka Mehra

Sr. Digital Marketing Specialist at Signity Solutions
Being an online marketer, she loves to learn, explore and implement new marketing strategies.She is insightful when it comes to marketing challenges, trends, and growth hacking.
Priyanka Mehra

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