Chatbot for Banking: How it could Revolutionize the Finance Industry

Personalized banking or relationship banking is an aspect that focuses on effective customer engagement and Artificial Intelligence (AI) is a powerful tool that can help a business achieve results in this area.

Due to its excellent customer engagement abilities, AI is being adopted by a majority of industries and the banking and finance industry is one with immense possibilities.

There are many processes in the banking industry that are not automated and thus, consume a lot of time. AI chatbotbanking can be deployed for such processes as they can deliver better results without the disadvantages of human downtime and fatigue.

Chatbot for Banking

Customer engagement is an integral part of any sales-driven industry and the banking sector is not an exception. Effective customer engagement can do wonders for an institution and here is how an AI chatbot can improve the customer service experience in the finance industry.

• Personal Banking

It has become a highly popular phenomenon in 21st-century banking where financial institutions are providing personalized banking solutions. Financial products are unique and the same policy or service may offer different financial advantages or disadvantages to two different people.

Therefore, institutions are focusing more on gathering wealth-related information about their potential and existing customers and offering products and services accordingly.

AI chatbot for banking can be of great help in collecting crucial data and conducting surveys that are precise, relevant and brief.

• Personalized Marketing

AI chatbots can be used for personalized marketing as well. Institutions can collect highly personalized information from existing and potential customers such as their income, income sources, investment habits, and preferences.

This information can be used for creating personalized marketing campaigns and ultimately personalized products. Such a marketing strategy can be implemented for customers that have similar informational databases.

• Automated 24/7 Customer Service

AI chatbots are the primary step in revolutionizing customer services where there is virtually no need for a customer service department or call center.

A 24/7 Customer support can be fully automated by integrating chatbot to the information database of the institution as they can fetch the information directly and manage queries.

This is a scenario where on-call support is provided only in situations that require the exchange of highly detailed information.

This can be an ideal automated customer support scenario in which transferring calls to specific departments and delays in information transfer can be eliminated completely.

In addition, automated customer service is to-the-point and it ensures effective customer engagement as well. The reason why customers refer to customer support is either for information or a dispute.

In both situations, prompt response and precise information can guarantee effective communication and AI chatbots are specifically designed for that.

• Eliminate Unnecessary Information and Feedback

A chatbot can help a business by improving the workflow and integrating processes with each other. However, these are not the only benefits as some additional perks follow automatically. Integrated processes do not require entering the same information over and over. This controls redundancy in both the processes and databases.

For instance, transactional disputes are common issues in the banking industry and these can be resolved with increased efficiency with the help of AI-enabled chatbots. When a customer enters the transaction number or receipt number through a chatbot, the information goes directly to the database and concerned authorities.

Even when the bot refers to the customer to an on-call expert, they do not have to repeat the whole process. This eliminates both data redundancy and repetitive processes.

• Improved Employee Productivity

AI chatbots can significantly improve employee productivity by allowing the business to utilize the full potential of the employees. In an organization, there are many tasks that are mundane and do not require the use of human intellect.

Therefore, automation enables the organization to use their workforce in areas where creative ideas and critical decision-making is required rather than for routine work.

• Better Sentiment Analysis

AI enabled chatbot for banking to follow Natural Learning Process (NLP) which allows them to gather information and learn as per their interaction with the customers. These can be highly beneficial in consumer sentiment analysis which is an automated process in itself. Sentiment analysis is a process that involves collection, analysis, and refinement of huge amounts of consumer data which is then utilized for gaining strategic insights.

Here, AI chatbots can be used for data collection that is a multidimensional process. Businesses engage their customers at various touchpoints such as website, mobile app and retail branches. This helps in the collection of excessive data about every single consumer which is then analyzed further. Both virtual and physical chatbots are seamlessly integrated with each other and the central data storage, therefore, they can be amazing data collection tools.

• Quick Feedback

Honest customer feedback is crucial for improving the quality of product and services. Chatbot for banking can help in generating feedback from the customer through short and simple measures such as ratings to understand their views and overall purchasing experience.

In addition, the feedback is quick, and whether the consumers want to express their opinions in detail entirely depends on them. This way, the feedback can be directly transferred for analysis and the true consumer experience can be measured.

• Reduced Survey Costs

AI chatbots can conduct automated surveys where consumers do not have to fill online forms or talk to customer support executives. Automated surveys are simple and quick, thanks to their bite-sized questions. Chatbots can conduct thousands of surveys every single day and collect vital consumer data.

This eliminates the need for conducting surveys separately as the institutions can make it a part of their purchasing activity. This is a highly cost-effective approach due to which manual surveys are rapidly becoming irrelevant.

Business organizations that aim for long-term benefits always think ahead of their time. Although AI chatbots are not a thing of the future anymore, they have a lot to offer in terms of effective customer engagement and automation.

Shubham Sharma is a tech enthusiast & passionate Digital Marketer. He is passionate about technology, internet marketing, content marketing, and writing. He majorly writes about Mobile app development technologies, artificial intelligence, chatbot,