Chatbots in Banking Industry: Use Cases, Benefits & Future

Oct 1, 2021 | Blog

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Chatbot Use Cases for Banking

Chatbots are the biggest development trend today. From emerging startups to large enterprises, chatbots play essential roles in businesses where automation is the need of the hour. Whether it’s customer service or digital banking, chatbots are simplifying human-to-machine interactions.

You might be wondering what banks have to do with chatbots. It’s simple: automate service. Service today is slow and sometimes unpleasant because people are prone to mistakes and misunderstandings. A conversational AI chatbot can be your employee 24/7 – always on hand, never gets sick or forgets anything, never gets bored or unproductive.

Transforming the Face of Banking Operations/ Enhancing Banking Services with Chatbots

As banking chatbots continue to evolve, many financial institutions are adopting conversational AI technology, with early successes coming in call center automation and marketing campaigns. This year at SXSW, Bank of America announced Project OpenWhisper, an open-source platform designed to help developers build better digital banking chatbots using the same underlying AI technologies that power its digital assistant, Cindy.

Digital agent assistants and chatbots have transformed personalized banking and customer service. Rapid processing requirements, unique customer needs, secure data management, and 24*7 availability have all been met with the advent of conversational AI Chatbots.

Chatbots for banking enhance the omnichannel customer experience while also broadening their reach. Banks have been highly effective at striking the ball and integrating bots into their daily operations. Banks are expected to save billions by the end of 2022 by saving time explaining customer questions.

What Benefits do Chatbots bring to the Table? / Why Should Banks Invest in Chatbot Services?

Banks and financial organizations can utilize chatbots to streamline everyday operations and boost company performance.

1. Enhance Customer Service

The future of digital banking is conversational AI chatbots. With the advent of banking chatbots, certain essential aspects of customer care and support – such as speed, access to information, and pleasant encounters – are more feasible.

2. Personalized Banking Experience

Personalized services tailored to a customer’s individual needs are the latest trend among customers. Around 63% of users expect personalized experiences and services.

Chatbots incorporate consumer data to offer a completely tailored digital banking experience that perfectly suits their customer’s needs (with the customer’s consent to send such data to the smartBots).

3. Cut Down on the Costs

By 2022, Chatbots in the digital banking and healthcare industries may save over $8 billion each year. According to some projections, conventional financial institutions may save $1 trillion by 2030 by adopting artificial intelligence to decrease expenses by 22%.

4. Better Risk Mitigation

Conversational AI chatbots can manage and simplify the process of evaluating critical data related to prospective customers’ loans, market trends, and the borrower’s most recent financial actions, generating credit reports and providing risk advice. Chatbots reduce human error in detecting fraud and streamline operations.

5. Improve Work Efficiency & Reduce Workload

If an AI chatbot can handle a customer’s queries, they won’t have to wait in line for a teller or sit on the phone wringing their hands. Agents assisted by AI smartbots may focus on addressing complicated problems rather than answering basic consumer questions.

Top 10 Chatbot Use Cases for the Banking Sector:

Chatbots in the digital banking sector can be deployed to accomplish several tasks to optimize daily operations and improve the omni-channel customer experience.

1. Transfer Money

Users may use chatbots to pay their bills, track money transfers, and set up or cancel payments. Users can also use chatbots to charge their prepaid cards or pay off their credit card bills.

2. Get Account Balance

Customers can ask chatbots to check their account balance within a few seconds. AI assistants can also estimate balances and warn users if their accounts are about to fall below a certain threshold. This allows customers to better manage their accounts without logging into their e-banking account or calling their bank directly.

3. Send Timely Alerts & Notifications

Chatbots can be configured to send valuable reminders and regular alerts, such as bill payment deadlines or the delivery of specific documents for financial transactions (e.g., loan applications). They can also send important notifications, such as banking updates and credit score changes.

These push alerts and notifications may make users aware of things they didn’t know, resulting in increased digital banking service usage and improved customer satisfaction.

4. Track Transactional History

Users may ask SmartBots to summarize their transactions and a recurrent weekly or monthly report on expenditure, which will help them better manage their money. When a payment, withdrawal, or reimbursement occurs in the account, chatbots can deliver quick alerts.

5. Tackle Suspicious Activities

Users frequently encounter suspicious activities that may put their bank accounts and cash at risk. With conversational banking, customers can receive notifications and help in the event that their account has been hacked, and they can contact operators on a priority basis.

This is one of the most critical use cases for SmartBots in banking since it protects account users from succumbing to questionable and fraudulent activity and protects their hard-earned money.

6. Hassle-free Application for Other Services

Users may utilize chatbots to apply for services such as loans, new cards, and reward programs. It can provide consumers with information such as a list of documents that must be provided to complete the procedure smoothly.

After completing the forms, consumers will receive responses to their queries. In a way, every minute saved adds up to a more efficient banking system and a better client experience.

7. Customer Support with just One Tap

Chatbots improve operational efficiency by streamlining customer care operations. SmartBots in banking also improves the omni-channel customer experience by reducing response times and allowing consumers to answer their questions in the quickest time possible.

8. Easy & Uncomplicated Lead Generation

The existence of chatbots in the banking sector has simplified the entire process of lead acquisition. The chatbots are deployed on the bank’s official website/app and engage with consumers to see whether they are interested in buying their bank’s products.

Following the first engagement, the ‘leads’ may be forwarded to the appropriate bank team for an additional follow-up to close the deal. When compared to traditional approaches, banks have noticed a substantial rise in the number of leads acquired utilizing conversational banking methods.

9. Personal Banking Assistance

Chatbots may give users various valuable information, such as their spending habits, a year-end review of recurring costs, and charges for specific months or places. They do so by gathering and analyzing data and hence serve as financial counselors as well. This is one of the possible applications for chatbots in banking, and it’s especially beneficial for those who don’t have access to financial guidance due to budget or location constraints.

10. Make Secure Payments

Chatbots allow users to make quick, hassle-free payments in a few seconds with top-notch security and data protection. Conversational banking chatbots simplify the payment procedure and make it swift, safe, and secure.

Chatbots are here to stay/ Upgrading to a chatbot might be the best business decision you can make/ This is the best time for chatbot integration

Banks are quickly incorporating chatbots into their operations to improve efficiency. Bots are assisting banks in interacting with clients at all stages of the customer life cycle.

Using the services of an AI chatbot creation firm may offer you compelling reasons to use chatbots and make your website/app a modern classic.

Chatbots for digital banking services are here to stay, and banks would be unable to function without them. Taking control of the situation now is the best course of action. Contact a reputable financial software development firm to save hours each day that can be spent on more productive tasks.

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