Chatbots in Banking Sector_ Benefits, Use Cases, and Future

1. As consumer expectations rise, AI is playing an increasingly important role in the financial services industry to meet expectations. Many financial institutions are experimenting with chatbots to offer new and better financial services to their customers and for general customer service. Chatbot Application Developmen t in the finance industry add significant value to user experience and cost management budgets. In any business, customer support and satisfaction are the basic pillars. Therefore, it is important to build a strong foundation of these pillars to have a successful business. By incorporating AI chatbots for banking , chatbots can handle simple requests like balance inquiries and payment information, thereby reducing the workload of call center employees so that they can focus on other challenging tasks and strategies that require a higher level of expertise. Benefits of Chatbots in the Financial Services Industry Chatbots are gradually gaining wide acceptance in the financial sector. They not only simplify processes for businesses but also enable quick access to services previously limited to apps. In fact, chatbot business

2. benefits are much greater when delivered using them, as it always provides a boost to customer engagement. AI chatbots can provide many benefits in financial services: Improved customer experience – Chatbots can effectively manage financial services and perform activities once performed by agents, thus providing faster responses and personalized service to customers. Task Automation – Financial companies are deploying chatbots to automate many tasks like handling customer complaints, answering queries, providing investment advice to improve the customer experience. Onboarding – Bots are often used in the financial industry for onboarding purposes by allowing customers to smoothly set up a new account without going through the usual steps at the branch. Support Cost Reduction – Financial chatbots help businesses reduce customer service costs by up to 30%, and that's why the finance industry can use them for quick resolution without the need for support staff. Increase in revenue – Companies that have implemented financial services chatbots in their processes are able to acquire new customers on the back of quick support and excellent services that help them increase their revenue. Recommended To Read: Top finance application development companies in bahrain Let's look at some of the use cases of chatbots: 1. Transfer of money Users can use chatbots to pay bills, set or cancel payments, and track monetary transactions. Chatbots can also pay credit card bills or charge prepaid cards.

3. 2. Answer the basic questions AI use cases in finance - Chatbots can answer many basic questions regarding customers or accounts of banking products. For example, chatbots can answer questions like “How do I apply for a credit card?” 3. Provides on-time notifications and reminders Many banks use chatbots to provide timely reminders and regular notifications to their customers regarding their bank accounts. Some of the reminders that customers often get are related to their bill payment due date, last day offer of loans etc. All these reminders are meant to inform the customers about all the activities that can benefit them and stay with them. 4. Check account balance Users can ask chatbots to provide account balance details with their names. Chatbots can alert customers if an account balance is at risk of falling below the average balance. 5. Provides complete account details Apart from account balance, users can also ask about other account details such as recurring payments and expenses, card reward points and money transfer limits. One can refresh their account details and make changes like updating their current address or phone number. Recommended To Read: Use of Artificial Intelligence in Banking 6. Real time location tracking Depending on the location, answers to user questions may vary. For example, if a user asks, "Where is the nearest bank branch?" In this scenario, the chatbot will answer based on the user's location.

4. Additionally, chatbots can track location via mobile GPS, thus providing the right answers every time. 7. Address urgent issues on priority Chatbots in banking industries help customers with complex but urgent issues. These issues include unlocking or locking cards, resetting, checking bank statements and completing fund transfers. An AI chatbots allows customers to complete the entire process without waiting on the phone. The future of chatbots in banking Chatbots are the biggest development trend today. From emerging startups to large enterprises, chatbots play important roles in businesses where automation is the time of need. Be it customer service or digital banking, chatbots are facilitating human-machine interactions. Banking systems have long been a popular case for chatbots, but technology has only recently made them sophisticated enough to be truly useful. Initially, chatbots were simple FAQ engines that could only answer questions that were already available in their database. With the rise of ML and NLP ( Natural Language Processing ), bots can have more meaningful conversations by interpreting queries that are not in the database. However, when it comes to responding - responses are usually templated. Recommended To Read: How much does it cost to build digital banking app like RAKBANK In the future, we can expect more non-template responses from bots. We are rapidly advancing to a time where it will be difficult for customers to guess whether they have just chatted with a human or a machine. The end

5. All in all, 2022 will be a year of chatbot adoption. Chatbots are being adopted in healthcare, real estate and many more industries. Choosing the best features of a chatbot from the variety of chatbots available in the market can be tricky. As banking is a sector that improves the customer journey and experience at all stages, banking is already well ahead of the curve when it comes to adopting conversational AI solutions. AI based chatbot service for financial industry and voice bots have significantly helped banks engage with customers at every stage of the customer life cycle and will eventually evolve to interact with customers with a more human touch. This helps in cost efficiency and makes the customer experience more realistic. Therefore, the future of chatbots in banking is more virtual than in-person.