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Chatbots: The Next Frontier in Retail Banking

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The contemporary Homo sapiens’ life centers upon money and technology. As a result, the banking industry is always the first to adopt new trends. A decade ago, digital banking ended the three-hundred-year-old ‘custom’ of queuing.

We may now open accounts and utilize financial services without ever entering a physical bank. eBanking was a major step forward for customer care, but it has created an uncomfortable sense in Customer Support departments throughout the world. What are our next steps?

In the previous several years, client expectations have skyrocketed. Deloitte’s Reshaping the Retail Banking Experience – For the Customer of Tomorrow report verified this trend. Future customers are described as well-informed, connected, suspicious, and demanding.

Financial institutions must continually provide quick service to their clients and regard them as ‘bank ambassadors.’ The most critical stage of the banking sales funnel is already customer service. Even if the consumer is not totally delighted with the offer, knowledgeable agents may keep them loyal.

Unfortunately, competent customer service professionals are difficult to come by. Customer service and sales need a lot of experience, and most talents advance up the management chain or transfer to other departments once they have mastered all of the essential abilities. Why would somebody spend their entire career gathering client information? Chatbots, it appears, are unconcerned about this.

Chatbots: the first step toward intelligent customer service

One of the critical priorities for improving financial institutions’ ability to meet consumers’ demands, according to Jim Marous’ Improving the Customer Experience in Banking report, is the implementation of advanced analytics, machine learning, and contextual engagement to provide a highly personalized experience.

Chatbots are the most common type of customer support technology right now. By taking over the earliest steps of client engagement, they enable banks to depend on small and highly skilled customer care staff. They also handle all of the mundane operations such as account registration, authentication, card cancelation, and customer onboarding. All the dull stuff.

What distinguishes chatbots from online forms?

Today, most online interactions between banks and customers take the form of web forms. Although they are quite useful in terms of customer service, forms must always have a live help channel. No matter how basic the form is, there will always be clients who do not grasp it.

Filling out lengthy forms may be tedious and aggravating. We’re all sick of the judgmental red letters that appear after hitting the submit button. Chatbots, unlike online forms, utilize more sophisticated approaches to acquire customer data. Aside from the standard conversation flow, they include user input, rapid answer, and menu capabilities, making them the ideal choice for uncomplicated customer interactions in the banking industry.

Banking via conversation

The days of automation being the most essential priority in the banking business are long gone. Personalization is the frontier in the Digital Banking Era, when most institutions have fully automated their client interactions.

Conversational banking is a relatively recent notion that is based on the expanding capabilities of artificial intelligence. Clients have control over the engagement and may receive the information they need without having to follow predetermined navigation and forms.

The most recent chatbots may be readily trained to identify and use the clients’ language, providing them with cutting-edge service in real time. With technologies like Botdesk, businesses can simply add extensive FAQ messages into chatbot scripts.

Most platforms enable developers to construct bots to answer to many variants of the same inquiry, as well as synonyms, colloquialisms, and slang. Some systems also include established bot templates, which make creating dialogue much easier. The Snatchbot platform, for example, offers a banking template with pre-made bot statements that guide customers through the loan and credit card application procedure.

Other advantages that chatbots provide

Apart from their chattiness, bots provide other advantages to banks and their customers. These are some examples:

  • At any time of day, you may get real-time assistance. Only for this function would banks need to hire at least four customer service personnel, schedule their shifts, and pay overtime.
  • Support and financial services are available through many channels at the same time. A single chatbot may interact with customers via the bank’s website, app, social media, and messaging applications.
  • Offers that are relevant and up to date for various customer segments. Chatbots can select which plans to provide based on the information gathered throughout the chat.
  • Chatbots can help banks create connections with their customers instead of depending on one-sided communication.
  • Because there are hundreds of free building platforms, the simplicity and cost of chatbot production may also be considered as a positive.

The revolution of chatbots has here!

Several large banks have already implemented chatbots. These are just a few examples of financial firms that have recognized the benefits of artificial intelligence:

  • Bank of America – Later this year, BofA will launch Erica, its first chatbot. It will assist customers in dealing with debt and saving more money.
  • JPMorgan Chase – Rather of making their COIN bot available to the general public, JPMorgan Chase has employed it to improve the productivity of their back-office processes. COIN saved over 360,000 labor hours in only one year.
  • Capital One has previously introduced two virtual assistants. Eno, the most recent edition, addresses consumers’ inquiries about payment history, transactions, and credit limitations.
  • American Express– AmEx utilizes a Facebook Messenger bot to make life easier for their customers. The bot delivers real-time purchase alerts and assists clients with linking their cards to Facebook accounts and using them for in-app transactions.

The application of artificial intelligence in banking extends far beyond the capabilities of chatbots. Nonetheless, the miracles they do for client engagement have transformed them into a customer service game changer. The bot development is a worthwhile investment for banks of all sizes, and that is the least we can say about the technology that has managed to transform customer care job into a nice chat.

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