Exploring The Role Of Chatbot In Banking & Finance
According to a study, the chatbots will contribute to about 85% of all customer applications by 2020. The acceptance of chatbot contributes in retaining $8Bn by 2022 in the banking sector. So, you can say that Chatbot In Banking & Finance is the future.
How a chatbot can contribute in the banking sector has a detail explanation. But, before planning to build a chatbot, you should have a proper guide. A guide can be a company or a freelancer.
So, let’s start the show, right here, right now.!
Chatbot In Banking & Finance
1. Common Features Of Chatbot
Numerous features of Chatbot In Banking & Finance can help the business in saving a lot of costs.
A leading Chatbot App Development Company can provide you suggestions, understand your requirements, and deliver you a quality product.
A few features are as follows:
- Auditory or Textual Conversation
- Easily Integrates with CRM
- Intelligent & Understanding
- Open for Exploration
- Builds with Modern & Trending Technology
The chatbot is trending technology, and people have started unlocking the possibilities of it.
2. How a Chatbot in Banking & Finance Works Very Well?
Banks are flooded with customers and their queries. Banks aim to provide satisfactory responses by resolving their issues.
The integration of Chatbot In Banking & Finance can be a blessing. The banks can integrate the chatbot, and use it to respond to the customer queries.
The chatbot is known for its conversational maturity, and the banks can be the first to reap the core functionality.
The chatbots can answer multiple queries and respond to multiple customers at a time. It closes the inquiries quickly. Also, It is believed that chatbot saves a lot of time than traditional call centers.
3. Advantages Of Chatbot In Banking & Finance
3.1 24*7 Customer Support
The quick acceptance of internet banking shows how weak is our traditional banking system. The users have no time to stand in long queues and wait for hours.
They expect a quick solution to their queries. After researching customer behavior towards traditional banking, the bot was developed for the banking system.
Chatbot In Banking & Finance requires training to deliver the service to the customers. The training includes:
- Answering to Customer queries
- Providing Effective Solution
- Resolving Issues
- Updating them with the upcoming Schemes & Offers
The bots are proven to be advantageous, and that is the reason the customers have quickly accepted it. Hiring manpower could attract a hefty investment.
Also, they require training, and that too paid. Moreover, we cannot expect the best service from the operators even after investing time and money.
On the other hand, bots are available for 24*7. They are specifically designed in such a way that they don’t get biased and also deliver quality service.
The banks’ design chatbots in such a way that they solve Millennials queries in seconds so that the customer will get quick answers to their queries which they expect, and also a bot leave a positive answer in the minds of the customer.
As there is a bot to handle the queries of the customer, the resources can focus on strategic decisions and understand the in-house queries.
The banks have started accepting bot technology, and below is the example of it:
HSBC has its chatbot, i.e., Amy. It functions in resolving customer queries in Hong Kong. Amy is available on mobile and desktop in both the languages Chinese & English.
It provides comprehensive answers to a lot of questions. The core function of the bot is to deliver quick and effective solutions to the customer’s queries.
Additionally, it learns to process complex and broader problems by memorizing and understanding customer feedback. HSBC is considered to be the busiest bank of china.
Amy has proven to handle and deliver effective solutions to all the customers of the busiest bank. It has made a significant contribution in bolstering the banking sector.
Moreover, if there is a complicated query from the customer which Amy has no idea about, it directly passes the query to a real consultant. The real consultant will have case details and will coordinate with the customers.
3.2 Employee Assistance
The chatbot is not only advantageous for bank customers, but it can also benefit bank employees. They can also reap the benefits from the bot.
Banks do believe that investing in chatbot would be a beneficial option. It can relieve the workload of the employee and make their lives simpler.
Training: The financial system is growing and expanding alongside the number of employees. As there is an increase in the number of employees, it requires training.
And, the training requires a trainer who has to have a sound knowledge of the banking sector. Instead, the banks can install a chatbot with training functionality that could save a lot of money as well as time.
The bots can train the employees to work with complex software, allowing them to remember security policies, etc. Also, it saves costs behind employing a human trainer.
Consultancy: Chatbots can go above and beyond in aiding the bank employees. The banks have the most advanced and trustworthy source of securing the system, i.e.,
Alphanumeric and symbol combo passwords, multi-factor authentication, etc. Bots can also support the employees by providing them with IT technical support. It provides consultancy in enhancing IT support.
Below is the example of Chabot aiding the bank employees in providing IT consultancy:
Aida by SEB Bank:
Aida delivers IT support to the employees. The idea behind building Aida is to replace manpower delivering IT support. The deployment of Aida is to free up the manpower and let them focus on core IT areas.
Aida functions to deliver minor queries of the employees. For example, if an employee locks a profile, then Aida can help in unlocking it without human intervention. Also, it has proven to save a lot of time for SEB banks by improving its technical assistance.
The HR department is flooded with questions, queries, concerns, and also hiring work. With the heavy workload, HR requires an assistant who can ease their task.
The chatbot can also help to answer the questions with HR intervention. You can go through a blog on Chatbot aiding HR to understand how it helps.
There is a chatbot that helps HR to focus on strategic decisions.
OCBC Bank HR Chatbot:
Buddy is the chatbot built by OCBC bank in Singapore. It supports the HR department of the bank. It answers all the questions related to HR scope.
Moreover, Buddy understands both spoken and written text, so employees don’t need to worry. The bots make the interaction easier, and also, the employees can reach out to them via mobile or PC.
Buddy has proven to be a helping hand of HR. It decongested the HR department and saved a lot of time.
3.3 Personal Banking
The technologies have made life much easier than earlier. People start accepting technologies that come in any shape.
Also, the development of technology to ease human lives have raised the expectations of people. People adopting technology expects to have a swift response and service.
People are so dependent on the technology that they want personal assistance to manage their bank accounts, make legit transactions on behalf of customers, and show them balance on request.
The users prefer the technology that easily understands them without even writing or texting. Users prefer to adopt live chat mostly while using their applications as it doesn’t require testing.
People prefer conversational interactions with the bots as such communication offers natural to people. Also, it raises the standards of the banks. Below is the bank that has adopted the technology:
Wells Fargo Chatbot:
Wells Fargo is an American Bank that has built their chatbot on Facebook instead of an application.
The chatbot has proven to be an innovative innovation by the bank. The user can seamlessly enjoy banking services such as requesting bank balance, view recent transactions, fetch data about spending, etc.
3.4 Customer Satisfaction
In today’s world, nobody has time to rate the service. The user opens the application, does their needful task, and exits the application.
It becomes difficult to fetch the user experience data from the application. The user has to fill in the rating meter to allow the app owner to know about the product’s feedback.
Apart from showing rating meter at the time of closing the app or asking a common question that says, “How would you rate the service?”
AI Chatbots can help in this situation by fetching out the data of the user’s preference and their behavior patterns.
The information would help the bank to improve its service and also update themselves with the latest trends and technologies. A personalized approach could be a cherry on the cake as it helps in bringing new leads.
3.5 Marketing Strategies
In the world of technology, there has to have innovative ways of advertising products. People are well-versed with the modern products of the banking sector.
They would want more information about them. Availing those information could require meticulous research that results in wastage of time.
Chatbots quickly delivers vital information to its users and saves a lot of time. Delivering personalized information could be an effective marketing campaign. Also, it can improve strategies and work on new ways to deliver information to customers.
The personalized marketing campaign through chatbots can not only improve user engagement but also will contribute in raising conversion rates.
Below is the proven example that shows how an effective marketing strategy proves in retaining and pulling existing and new customers, respectively.
Gina, a chatbot that offers promotions after analyzing the user’s location, preference, and interest. ImaginBank is a mobile banking organization that operates in Spain.
The chatbot interacts with human and understands requirements. Also, it analyzes human behavior and offers various services to them. Moreover, it offers deals in different forms of entertainment to accomplish aim faster.
Around, 30 percent are non-customers of the bank that have come into contact with the chatbot. An average customer contacts the bot once in a week. The above statistical data shows how a bot is helpful in bringing new customers and retaining existing ones.
3.6 Suggestion for Financial Issues
A lot of people earn well but don’t manage their funds properly. They always seek someone whom they can trust and share their financial flow. They consider banks to be the most trustworthy and that is the reason they ask them for help.
In the above situation, banks play a vital role for their customers. They can deploy a chatbot who can be a one-stop solution for their customers.
It becomes an opportunity for banks to work for the betterment of employees and gain more customers.
The customer will also feel secure in sharing their financial flow and ask a good suggestion from a bot.
And, a live example of aiding customers with financial management is Bank of America. It has built a chatbot that provides solutions for financial problems and ways to save money. Let’s have a look at the chatbot developed by the Bank of America.
Erica by Bank of America:
Erica is a chatbot developed by Bank of America. It advises the customer on how to save money and how to cut down unwanted expenses. Also, it helps the customer in planning for a certain investment.
In addition to that, it also calculates how much amount a user can save in a year if he/she cuts down the unwanted expenses. And, it provides the best solution and shows them what they can afford.
Moreover, the chatbot can be integrated with useful materials and educational videos. It can help the user in understanding the different tactics of saving money.
3.7 Automating Back-office Tasks
The banks have numerous tasks that require an eye on it, which could bring in a hefty investment. Instead, a bank can streamline those tasks and save a lot of time and money.
The banks might take hours to confirm a document while a bot does it in seconds. This type of multiple tasks can be automated and executed.
The chatbot is capable of replacing accountants or lawyers by executing their tasks. On the off chance, they can also become their helping hand by simplifying their work and making it easier for them.
JPMorgan Chase, a multinational financial institution, has its chatbot that is proven to be a blessing. A COiN is a chatbot of JPMorgan Chase.
COiN by JPMorgan Chase:
COiN, a support system for the giant financial institution, simplifies their task. It processes the documents fast than an employee. The bank calculates that around 400,000 employee hours were saved with the help of a chatbot.
The chatbot processes images and verifies legal documents by fetching out vital information. The chatbot helps a user to save time and process documents faster.
Building a Chatbot requires the use of cognitive technologies and years of experience, which would be difficult to find in a freelance.
You have to hire a dedicated developer from a company that has years of experience and have a sound knowledge of both traditional as well as modern technology.
Chatbot In Banking & Finance matters a lot. It not only saves a lot of time but also delivers effective and quick service. Also, it can provide an effective solution to the problems.
Moreover, the chatbot is designed in such a way that it retains existing customers and brings in new customers.
A chatbot is an ideal option in streamlining humdrum tasks. A bot will always become a helping hand of employees and will never take over the jobs.
By automating monotonous tasks, it helps employees to explore the other banking products.
Chatbots have given outstanding results to the banks. Banks that have launched AI & Bot programs have witnessed the success in one or the other sphere.
A chatbot is proven to be versatile in resolving issues of banks. Also, it can uplift the customer engagement ratio, and improve conversion rates.
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