How Chatbots are Simplifying Financial Services
Sangeetha P, Online Content Writer, siliconindia | Wednesday, 07 October 2020, 14:53 Hrs
Artificial Intelligence has encompassed almost every activity and every sector, and the sudden pandemic's impact has further boosted the usage of automation in every field especially in financial services that had a high demand even during the lockdown. AI has been induced in every aspect in the finance and banking sector from chatbot assistance to fraud detection and task automation. The OpenText survey on banking report states that about 80 percent of banking and financial institutions are aware of potential benefits that are brought in by AI and intend to implement it for day to day activities. However, 75 percent of respondents with more than $100 billion in assets have already installed it compared to 46 percent of banks with less than $100 billion in assets.
Chatbots have evolved to be a vital part of the current financial ecosystem. It is no more the programs that had a tough time answering customer’s questionnaire and leave them in limbo. The technological advancement has upgraded these chatbots to indulge in an effective conversation with the customers and keep them engaged. These smart digital assistant provide a personalized customer experience on par with human interaction.
Juniper’s study forecasts that installing chatbots would save the banks up to $7.3 billion by 2023 globally. While the Financial Brand predicts that AI’s chatbots would save the banking industry more than $1 trillion by 2030. However, the chatbots could meet the customer’s requirements by being available round the clock this could save about 862 million hours of work for the banks. Furthermore, the chatbots enhance the efficiency of customer service and cut down the human error as well as resolves the customer queries at the snap of the finger.
Regular Use Case of Chatbots in BFSI
Improved Customer Service: The chatbots installed in financial services has the potential to aid the customers by performing varied financial transactions in a secure and conversational manner. They enable the customers to review their account balance, policies, refund, digital transaction, lost card complaints, and other such minor tasks that could be performed by the customer all by themselves.
Curb Fraudulent: Security issues are quite crucial for the banks and financial institutions as compared to other businesses. Chatbots eases the process and offers efficient monitoring and provides quick alert upon any such fraudulent activity to the customers as well as the bank.
Provide Financial Assistance: Chatbot has the potential to quickly access the customer’s data and they also provide the customers with relevant financial advice and recommendations. They can also analyze the customer’s finance usage and give instant financial advice according to the customer’s requirement.
Reliable: Cash is very vital for every individual thus, providing tight security for the customer’s money is not just an essential aspect of the banks and financial institutes but their reputation relies on it. Thus, it is unacceptable to have any mistake or error-prone transaction executions which might even result in losing the customers. Hence, these financial institutions and banks work towards providing a reliable security system that is assured by the chatbots.
Multiple Channel: These chatbots could be deployed on various channels, permitting the customers to choose the model that is ideal for them. This way the user is eased out further increase the use-rate solution. However, some customer finds it comfortable to use the virtual assistant through a phone call and a few might prefer to use mobile apps, WhatsApp, Skype and more thus, these chatbots enable various modes of communication.
A recent survey unveils that about 95 percent of respondents predict chatbot usage would increase by in the future while 66 percent feel that chatbot's huge challenge would be enhancing their imitation of human behaviors. Thus, we could expect an advanced feature with technological advancement in the forthcoming days.