In the 1990s, people had to stand for hours at the teller’s window for making deposits and withdrawals with no other option. Later, the era of the internet ushered that brought the concepts of digitization and internet banking to the limelight. By 2010, chatbots powered by the best of Artificial Intelligence were added to the banking and financial systems. They very soon became the disruptive force that transformed the way banks conduct operations and deliver services.
These evolving phases of the banking and financial industry reduced the friction from the banking and gave the banks a distinctive edge in the financial world. Not only this, the financial institutions started meeting expectations of the customers and increased the return on investment in addition to providing better customer experiences.
Let us get deep into the evolution of AI-powered chatbots to gain a clear and complete understanding of how chatbots are revolutionizing our world.
What Is A Chatbot?
The chatbot, an acronym for chatbots, can be defined as a conversational robot that is trained to offer data for natural language processing (NLP) by using Artificial Intelligence (AI) Technology. Chatbots mimic human interactions via a conversational interface and are capable of performing simple as well as complex operations.
Let us now find out chatbots are revolutionizing the world of FinTech and the segment of traditional banks that is slowly but steadily and surely catching up with AI.
Why Is Chatbot Integration Becoming Essential?
Simplifying banking apps by removing the complexity aspect
There is no rocket science to claim that the banking apps have brought an end to the long queues in the banks. Moreover, these customer-centric applications have assisted the customers to operate at their convenience and from the comfort of the couch. However, a poor-performing app may do more harm than good by failing to live up to the ever-evolving expectations of customers. These “ruined” customer experiences mean the customers will hesitate to or simply stop banking with the bank. To avoid such situations, today’s banking and financial institutions are identifying better and innovative ways for improving customer experiences so that customers can conduct transactions directly, smoothly, and securely.
Today, banking bots are capable of assisting customers to check the recent transactions, the amount transferred, and the available balance without even visiting the ATM or the bank by helping customers do these and many more operations using their mobile. The best thing about chatbots used in the financial and banking sector is that modern chatbots can comprehend the customer needs as well as the context. After that, smart suggestions are offered to the customers, courtesy predictive analysis.
Staying Ahead Of The Competition And Complying With Regulations
In today’s tech-savvy world that is taking a giant leap into the world of digitization, traditional banks are almost standing at the bleeding-edge of intense competition where the concept of chatbots must be implemented to stay relevant and progressive. Banking and financial institutions that have refused or delayed embracing innovation have gone extinct from the world. On the other hand, banks that have open-heartedly endorsed and embraced the latest technologies such as Artificial Intelligence, Machine Learning, Big Data, and more are better positioned than ever to compete against the best and make enough revenue to stay afloat.
With every passing day, world economies are following a progressive and innovative attitude and this also means that they need to stay strict about regularly updating the financial regulatory requirements. However, this is an exhaustive process. Thankfully, AI-powered chatbots tick the compliance and regulatory boxes by smartly and efficiently taking care of all the financial regulatory requirements associated with customer on-boarding and related charges.
Maintaining Good Terms And Pace With Next-Gen Customers
Next-gen customers or Millennials, the driving force behind banking innovations, are known for their spending power and high standards & expectations for customer services and convenience. That’s the reason why banking and financial institutions after the financial crash of 2008 and market volatility completely overhauled their systems to win the trust of the next-gen customers and win a big share of the millennial market share to retain the competitive edge. It is for these and many more reasons that banking and financial institutions are adopting technology to the core. By deploying chatbots, financial institutions allow millennials to conveniently access their products and services.
Fraud Detection And Prevention
Fraud, breach of trust, malware, phishing, spyware, and data intrusions – they’re the biggest nightmares for every bank and its customers as no one wants the security to be compromised at any stage. However, unlawfully and unwillingly they happen all the time, and the numbers of frauds and similar occurrences are continually increasing. Chatbots can be the perfect solution for detecting and preventing fraud in real-time and in an automated fashion.
Handling Complex Data
Banks and financial institutions have a wealth of data but the partial or complete lack of actionable data insights often don’t allow them to provide personalized services to the customers. This is exactly where Artificial Intelligence can help them. By communicating directly with customers, the bots can easily gain access to invaluable insights into customer concerns, behavior, and expectations in addition to information about personal financial transactions.
Innovating The Product Strategy
Banks should continually innovate the products, services, and processes they offer to seize a distinct edge over the competition. It is important to note here that emphasis merely on the internal innovation is not sufficient and banking & financial institutions should also emphasize on external changes to ensure the product stays relevant and competitive. Moreover, they are required to strictly follow regulatory compliances to achieve the strategic vision of their institution. However, the associated costs are too high and involve time-consuming processes. Therefore, it makes sense for them to embrace FinTech chatbots that significantly cut down the costs and eliminate the bottlenecks.
Improving Customer Engagement
The chatbot technology is revolutionizing the way banks and financial institutions perform their operations. A chatbot could easily prove out to be the best tool in their armor when it comes to driving engagement. This is simply due to the fact that bots have the unique ability to push the best and relevant content and continuously test the interest level of customers through the provided responses.
Chatbots, powered by the best of Artificial Intelligence, are enabling the banks and financial institutions to take proactive decisions, streamline the customer experience, improve customer satisfaction, improve profitability through marketable and powerful customer insights, and increase market share. The most interesting part is that FinTech AI chatbots are becoming intelligent and smarter with every passing day. Is your financial institution ready to embrace and turn to the disruptive technology for competing, transforming, and delivering value? If so, let the AI-powered chatbots get on with engaging conversations with your customers and start exploring the wonderful and exciting opportunities now!