How Chatbots Are Delivering Lasting Benefits For The Financial Services Sector
Companies in the financial services industry that leverage chatbots can gather user feedback, providing greater insight into customers and their expectations. Conversations from chatbots serve as a detailed record of pain points so companies can improve their products or services.
How Chatbots Are Delivering Lasting Benefits For The Financial Services Sector
Most importantly, financial institutions can greatly benefit from these technologies. Emerging technologies in the financial services industry like chatbots and automation reduce man-hours, improve the quality of customer relationships, and improve profitability. While the impact of new technology in financial services will differ based on the function, you can likely adapt and greatly benefit from many of them.
Chatbots and other artificial intelligence solutions are increasingly part of the digital transformation in banking. They are popular amongst financial institutions of all sizes, with everyone from large-scale banks to tiny credit unions implementing them. While chatbots are the more publicly visible versions of artificial intelligence, AI impacts back-office, product delivery, risk management, marketing, and security. Machines use simple algorithms to complete everything from data entry to risk evaluation to loan form processing, clearing up hundreds of thousands of employee-hours for top banks. These emerging technologies in the financial services industry are readily available for smaller banks as well, with tools to automate specific processes such as documentation, data sharing, data analysis, customer communication, and much more.
Why should banks use AI and chatboxes? Artificial intelligence is capable of making smart, agile decisions, cutting man-hours, and reducing time-investment for banks. Implementing simple chatbot solutions will allow you to offer faster customer security and improved response time to customers. It also reduces strain on first-line customer support, simply because many customers can get answers from the chatbot rather than a human. Implementing backend automation into risk-management, security, document processing, and so on has many other benefits, but is a new technology in the financial services industry that is still not widely adopted.
While developing chatbots, experience portals, or a blockchain solution yourself would be inefficient and costly, these emerging technologies in the financial services industry are becoming increasingly accessible to banks of all sizes. Digital experience platforms and developers specifically develop solutions for financial institutions, allowing them to lease and modify apps, chatbots, and other solutions that would otherwise take years to develop to any standard of quality. Financial institutions can then benefit from emerging technologies without steering away from their core business.
In fact, chatbots have now become the new normal in the delivery of financial services to the extent of removing the need for long queues and hassles of visiting the office. The use of financial services chatbots is projected to save businesses $7.3 billion in the next two years.
Chatbots are gradually gaining wide acceptance in the financial sector. They are not only simplifying the processes for businesses but also enabling quick access to services that were formerly confined to apps. In fact, chatbot business benefits are many when financial services are delivered using them as it can always ensure a boost to customer engagement.
Automation is clearly the most vital necessity for financial services as it will help cut down on operation costs and enhance the digital experience of customers. Keeping this in mind, banks and insurance sector companies need to find ways to implement financial services chatbots in their processes and deliver value to customers.
The revolution with chatbots in online banking has been incredibly phenomenal. Banking chatbots are providing excellent customer service and improving how customers interact with banks and other financial institutions. In fact, chatbots are revolutionising the way banks offer their services to customers.
Global inflation is expected to temper in 2023 by some projections, but the impacts of the ongoing conflict in Ukraine will continue to strain the global financial services sector as the prices of energy commodities raise production costs.
Incorporating more automation into the business model increases efficiency and decreases cost. Automation is a key way to free up needed resources. Implementing chatbots, virtual agents, and other automated technologies, will help financial services stay competitive in the market.
Many executives, in particular those in healthcare and financial services, are cautious about certain technologies due to security and privacy concerns. Businesses are concerned about hackers and outsiders accessing confidential data on patients or customers that can seriously affect their hard-gained reputation or result in penalties. This means that many companies in the financial sector are taking a slow approach to social media to not receive sanctions or be part of any scandals. This cautious approach also transcends to rushing in to deploy other technologies and monitoring them accordingly.
On the consumer side, chatbots are performing a variety of customer services, ranging from ordering event tickets to booking and checking into hotels to comparing products and services. Chatbots are also commonly used to perform routine customer activities within the banking, retail, and food and beverage sectors. In addition, many public sector functions are enabled by chatbots, such as submitting requests for city services, handling utility-related inquiries, and resolving billing issues.
Trust and confidence in financial services is key and achieving good outcomes for consumers will help do this. I worked closely with many firms during the pandemic and really saw the industry pull together to support consumers, businesses, and the wider economy. We began to see the trust growing. The new Consumer Duty will help build on this. And this ultimately benefits businesses, the economy and growth and productivity.
Cost savings is just one aspect of the benefits that chatbots offer to banks and their bottom lines. They can (and should) be used to increase revenue, too. Typically, customers only use a fraction of a banks' products or services. A chatbot can act as a personal sales rep suggesting the most relevant financial products to every customer based on their data. They can even streamline the application process to increase sign-up rates.
Chatbots are quickly becoming essential customer support and sales tools in the banking sector. They provide a range of benefits, from a better customer experience to increased adoption of your various financial products. Finding the right chatbot tool is key to unlocking these benefits and use cases. Freshchat is the perfect platform to build a banking chatbot thanks to:
For the 2.5 billion adults who transact exclusively in cash due to lack of effective access to formal financial services, having digital access to financial services may be transformational. The benefits of digital financial inclusion for the financially excluded and underserved are the following, among others:
Customer uptake of digital financial services in many markets suggests that on balance these risks may not be perceived to outweigh the benefits of being financially included. Nonetheless, the case is strong for appropriate regulation and supervision.
Bank of America has introduced a chatbot named Erica, an AI-enabled tool, which provides customers with financial guidance via voice and text messaging. The service allows customers to access services 24/7 and to perform day-to-day transactions. Their chatbots are helping to ensure that, over time, less-typical queries have pre-prepared responses.
During the past decade, the world of artificial intelligence (AI) and smart algorithms has known drastic changes and developments, with its main goal to make our lives simpler. With many virtual assistants already booming like Alexa by Amazon and Siri by Apple, smart interfaces are making their way up across various sectors, including financial services and banking.
As consumer expectations grow, many financial institutions are investing and experimenting with artificially intelligent solutions. Banks, investment institutions and fintechs are re-imagining customer journeys to improve their overall customer service and enhance customer engagement. The use of chatbots benefits both the financial institution and the customer.
Nowadays, chatbots are the most popular technology for customer service automation in the financial sector. According to a study by Juniper Research, the use of chatbots will save banks up to $7.3 billion by 2023. This type of deployment is very important for financial companies who wish to carry out their digital transformation and gain a competitive advantage.
Chatbots in the financial sector have several uses including digital banking and account services, customer onboarding, customer service agent assistance, refund management, self-service insurance operations and much more. Here are some of the most successful uses of chatbots in banking :
Financial services chatbots can help clients complete various financial transactions in a fast and secure way. From checking their accounts, reporting lost cards or making payments, to requesting and processing refunds, customers are now able to manage simple tasks on their own.
Erica is the virtual assistant of the Bank of America and it is one of the most talked about banking applications. The AI solution is tasked with providing day-to-day assistance to customers by helping them conclude transactions and paying bills. Through the chat, Erica can check payments, process transfers between accounts, block credit cards or send money to someone. It is one of the best financial services chatbots in the market.
The technologies that underpin fintech business models vary considerably. They include blockchain technology, artificial intelligence (AI), machine learning, and other big data functions like robotic processing automation (RPA). Each use case is unique, but the underlying theme is a collective effort to disaggregate the financial services sector, which, historically, has enjoyed a highly protected status due to high levels of regulation.