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How Are Chatbots Effective in the Banking Sector? | by Rebecca James | Apr, 2021

credit appinventiv.com

Do you know what irritates the customers when they visit their nearest banks? It’s their poor customer service. Clients want their queries to get resolved soon, but long response time and lack of free operators make them switch from one bank to another. If you want your customers to stick with you, you must ensure that you provide them excellent customer service. One way banks can deliver exceptional customer service to their clients is through chatbots.

Chatbots are known for boosting customer experience and, at the same time, helps bank staff in automating their routine work so they can focus on other important work. With this, they attract more new customers. It’s all because now chatbots have emerged more mature and secure. Before, chatbots only deal with customers’ predefined questions. But, now, advancement in Artificial Intelligence technology has transformed these bots into digital assistants.

To aid our readers more in this regard, let’s dive into this article and dig out more about how chatbots are useful in the banking industry. But, before that, let’s first discuss the role of chatbots in the banking sector.

The following mentioned below are some of the most significant roles of chatbots in the banking sector:

  • Cost-Effective: Chatbots are a one-time investment, and that cost is less than hiring a digital assistant in person. Like other separate apps, chatbots need less coding, which means low cost and is also supported by a wide range of platforms.
  • 24/7 Support Center: The 24/7 support feature of the chatbots attracts the customers the most. All those banks that support this feature can hold their customers for a more extended time.
  • Provide Suggestions on Financial Matters: Some banks are now using advanced bots to access customer data. These bots track how much the customer spends, manages their budget, and sets spending limits. Such bots also offer recommendations for money management. Isn’t it great?
  • User-Friendly: Compared to other traditional apps, chatbots are user-friendly, easy to use, and offer a personalized user experience. There’s no download process while using chatbots. All this is because of AI and ML technology.

1. Chatbot Trends Report 2021

2. 4 DO’s and 3 DON’Ts for Training a Chatbot NLP Model

3. Concierge Bot: Handle Multiple Chatbots from One Chat Screen

4. An expert system: Conversational AI Vs Chatbots

With the progress in AI technology and the conversational approach, chatbots can now communicate with customers. Like any other sector, there are several practical uses of chatbots in the banking sector as well. Here, mentioned below are some of them. Let’s discuss them one by one.

The advanced chatbot helps the customers manage the necessary banking activities such as EMI installments and collect the loan payments within the chat window. This function is the most effective use of chatbots in the banking sector. Your clients appreciate you for having someone who deals with all such work and is present around the clock at any time. Moreover, chatbots allow customers to make transactions, pay an invoice, and even apply for a loan by communicating with a bot.

Chatbots are known to handle transactional activities, and they securely do this job. They don’t make any errors while making transactions. Isn’t it great? You should take care to test your chatbot solutions before you make them live to avoid any further inconvenience.

Gone when customers visit the bank and the first thing that annoys them the most was waiting in long queues and personalization. For this reason, many of them switch from one bank to the other. But, with the arrival of chatbots, there’s much ease in bank employees’ and customers’ lives.

Chatbots offer a personalized banking experience to their customers. The customers don’t have to visit the banks quite often to inquire about their account balance, update their credit card details, know about the latest schemes, and get the monthly statement. Chatbots do all these tasks. It saves much time and leads to a higher customer experience level and more business productivity.

The bank statements and credit card bills have a PIN code, which only you know, and you can access the main document after entering the main document. Banks take this initiative because of the increasing threat landscape and prevent different kinds of cybercrimes and social engineering techniques like phishing. Thus, it is the customer’s responsibility to set a complicated password to break by any malicious agent. For a more secure browsing experience, while they use their banking services, users can use a VPN service that makes them anonymous over the web and encrypts their data traffic.

Banking chatbots also help customers in filling out application forms for different purposes. Be honest, and answer. Don’t customers get frustrated when they witness that the entire application form process is time-consuming? Of course, it is. Many customers often complain about this to the bank manager, but all in vain.

But, with AI chatbots, this problem can get fixed. The AI-based chatbots offer help in requesting the customers for the needed documents and images at the time of form filling. The customer onboarding process brings new opportunities for businesses to enroll in more new customers. While this process through chatbots results in higher usage rates, which is a plus point for the banking sector.

Nowadays, the majority of people use mobile banking apps. No doubt, these apps have their worth and are also in need of time. The biggest drawback of these apps is that it’s impossible to get customers’ feedback about your service. Users usually open the apps when they need them and close them once the work is finished. You can’t figure out your services, and either they need improvement or customers are satisfied with them or not.

But, with chatbots, there comes a solution as well. Chatbots offer specific tools that ask the customers for rating their services. The AI chatbots by asking questions like; was this conversation helpful for you? identifies the users’ behavior patterns. They gather massive user data about their moods, preferences, and behavioral patterns. In this way, banks get a chance to improve their services and introduce new ones if needed. Their main aim is to provide users a more personalized approach that leads to more conversion rates.

For customers to stay loyal to your brands, it’s essential to take care of customer needs and demands. Both business growth and customer relationships go hand in hand. At times, customers do face issues about fixed deposits or transactions. In such a situation, all they need is a quick response. Before, it wasn’t possible, but with the emergence of chatbots, customers now receive satisfactory responses to their problems that, in a nutshell, are proof of improved customer service.

As mentioned above, the most significant chatbots feature is that they are available 24/7 to provide solutions. It’s most welcoming from customers’ perception as well. Suppose a customer has lost their credit/debit card, and he needs to block it urgently. They don’t have to wait to visit the bank for this. The AI-powered chatbots provide them quick help in this matter.

Final Thoughts

To sum up, most organizations think that deploying chatbots risk their employees’ jobs. This is a big misconception. Chatbots are there to assist the employees. They automate most of their routine tasks and allow them to focus on other vital tasks. This not just saves much time but also brings more business opportunities.

The banking sector is now shifting more towards the adoption of chatbots. There are several benefits of having chatbots in the banking sector. Chatbots engage clients, save their time, and improve the customer experience. Moreover, they’re available whenever you need them. They have come out as a versatile tool that is improving the banking sector in many ways.

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