Trend watch is the process of watching what words people search more than normal. It is a data-driven report that tells you where the consumer is going and where your business should be. It allows you to understand the ever-changing world. Trend watch is about business innovation. In this article, we are going to explore the trend of chatbots in banking.
In the early 1980’s numerous websites finally reached a wider audience. This was possible thanks to the user-friendly GUI elements. This included menus, icons, buttons, scrollbars, icons and windows. But the charm of these elements diminished with time. Banks have always been the ones who adopted the modern technology that saw commercial success.
Artificial Intelligence and Banking
When artificial intelligence came about it was only a matter of time before banks used this technology to meet the ever-growing expectations of their customers. Many businesses have been interested in chatbots and even implemented them. Chatbots are conversational interfaces that are enabled by artificial intelligence.
The chatbot converses with millions of customers on behalf of the bank at a fraction of the cost and time. Instead of clicking on icons people can now directly interact with the chatbots and submit their inquiries and questions. These banking chatbots enhance customer’s experience and benefit the bank in return by making them approachable. The banks had to change their business process a little bit but it wasn’t that hard for them. The long term benefits that this banking software allows them to make has made it worthwhile for them. Many companies are now moving towards the chatbot solution.
Advantages of Banking Chatbots for the Bank
Cost-effective
Banks engage with their customers in conversations through various means. This could be telephone discussions, calls with a salesperson or service representatives, digital chats via email, mobile apps, websites and in-person conversations. In-person conversations are the most effective but they are very time-consuming and expensive for the bank. Chatbots reduce the costs and provide a high-quality customer service.
Connect with the Current Generation
Millennials are the ones that are most active on mobile message services and social media platforms. Chatbot is a better approach to interact with them. This up to date technology has more chance to succeed with them than anyone else.
Product Promotion and Customer Feedback
Banks offer more and more services and products each day. They may go unrecognized if your customer is unaware of them. A chatbot can promptly notify your customers and gather their feedback on what products and services are relevant to them. By gathering that data and analyzing it, you can make more personalized services next time.
Issue Resolution
Some banks that struggle with gaining leadership in the banking industry should strive for delivering excellent customer services. It motivates the customers to come back. Chatbots can help you do that. It provides the content for the customers that is not easy to find on the mobile app.
Advantages of Chatbot Banking for the Customers
Making a conversation with a chating bot is very simple. This is why customers prefer it over mobile apps and websites. They can simply ask the bot a few questions and get quick answers. They won’t have to log-in to their mobile apps or website. Some other benefits that these bots offer the customers include:
- Notify them about payments that are due
- Suggest various ways on saving the money
- Notify them about new products
- Show them their balance from time to time
- Stop the card activity to prevent frauds
- Deliver time-sensitive notifications
Chatbots in America
Chatbots in America are still in their initial stage. Many banks are experimenting with it but they are still in their trial phase. There is also a general fear of information security among people when it comes to chatbots. Banks can take various measures in this regard to remove the doubts of their customers. These measures include verifying the customer’s location and biometric authentication.
Working in Banking and Fintech industry is still on-demand, and there are plenty of job vacancies. Chatbots would take out of the work employees, but not in the nearest future.
Final Thoughts
Chatbots are still in the phase of infancy in many countries but their future is promising. A successful chatbot portal in East Asia has already proved that. However, they are not yet ready to take over customer service representative completely. But they can prove very beneficial for both the customer and the bank.
