Gartner estimates that 85% of banks and businesses will perform customer engagement with the help of AI chatbots by 2020.
In order to deliver services more quickly and enhance the productivity of tasks, making an attempt to replace human intervention as much as possible is a wise move. One of the most efficient ways that can aid banks in improving their efficiency on a large scale is AI driven chatbots. Chatbots that are powered by Artificial Intelligence technology have the potential to revolutionize the banking world.
According to a Gartner report, it is estimated that 85% of banks and businesses will perform customer engagement with the help of AI chatbots by 2020. Also, Juniper’s research indicates that cost saving will be close to $8 billion till the year 2022 through chatbots.
There are many banks who are not in favor of this kind of digital transformation due to their own apprehensions. Their profit margins are expected to decline by about 35%. But those who are more advanced are able to foresee the convenience of their customers. This helps them keep an eye on an estimated 45% profits.
Relationship banking is a segment that focuses on customer engagement. AI is an extremely powerful tool that can help in enhancing customer relationship. Combined with the power of messaging apps, it can revolutionize the banking sector in many ways. There are many tasks that take a lot of time to accomplish. In order to simplify their execution and save time, AI chatbots can be employed. This will also save human labor that can be utilized in other significant activities.
5 Ways How Chatbots can Improve Customer Service Experience in Banking:
1. Progress of Personal Banking
The biggest problem that most of the customers face from the bank’s end is the delay in services and lack of personalization. But with the introduction of chatbots, personalized banking can be revolutionized to a great extent. By reducing the waiting time and other related paperwork, the bank can help customers get faster and personalized services along with saving a lot of precious time for both parties. The customers need not visit the bank every time they need an account of their expenditure as the chatbots can effectively provide account statements.
Chatbots can also help with providing information related to the latest bank schemes, KYC, and resolve queries quickly. The best thing is that with the help of chatbots, the bank can solve queries in a very short time span without any human intervention. Moreover, the customers won’t even feel that they are interacting with a machine as the experience will be so lifelike!
2. Powerful Automated Customer Service
Apart from proving to be extremely helpful in delivering customer services, chatbots are also helpful in data analysis, fraud detection, and data capture. Since everything is pretty much automated with the use of bots, the users are notified about every transaction. This helps in preventing fraud by identifying any possible discrepancies in the very initial stage itself. The users are always updated about the activities taking place in their account. The bots can provide assistance to the customers at any time as they are trained to grasp their queries and provide the best possible solution, simultaneously making them feel like they are interacting with a human.
The bots also aid the banks to address any customer complaints by analyzing the grievances of the customers and providing important insights. They also help the banks improve their services. It is also essential in improving product offerings.
3. Provides Clearer Customer Feedback
Customer feedback is one the most important element of any banking service. With the help of intranet-based chatbots, the banks can get a more specific customer feedback that can help them in improving their services. The staff can gain information about the shortcomings and the management can offer helpful solutions. This indicates that the situation is favorable for employees, management and the customers as they all gain more convenience.
4. Personalized Marketing Experience For Customers
Even though banks provide a plethora of services to their customers, not every service can have the correct taker for it. Thus in order to provide the customers with personalized services, banks can accomplish this particular goal by deploying chatbots. As a matter of fact, the delivery of personalized services can improve the overall rates of conversion by 25%.
5. Enhancing the Productivity of Employees
There are many benefits the chatbots can provide to the employees that can help increase their work productivity and save their time. Some of the activities include accessing of personal details as well as payroll details, applying for leaves, updating the contact info, performing a detailed review of timesheets and much more. This enables the employees to increase the productivity during their work hours and utilize them more effectively.
Global banks are welcoming AI and are thrilled to make it a part of their digital strategy.
Bank of America
Erica, derived from the word America was introduced by the Bank of America is used to give information about the account balance, send various notifications to the customers, provide updates regarding credit reports, provides suggestions as to how you can save money, pay the bills, and aid the customers with transactions. It is a virtual assistant that helps the customers make smart choices.
In order to improve their back-office tasks, the JPMorgan Chase uses chatbots. This can help analyze contracts that are complicated better than human lawyers can. The 360,000 hours of human labor.
It uses Facebook messenger as well as AI chatbots to give a response to the messages of the users. It provides information like which is the nearest bank ATM and their account balance.
American Express focuses on the merchant relationship by making them aware of the benefits of a credit card, contextual recommendations, and notifications regarding the sales. In order to avail the benefits, it is mandatory for customers to connect to AmEx messenger chatbot.
Commonwealth Bank (Australia)
It launched Ceba, a chatbot used to accomplish tasks such as card activation, making payments, checking account balance, or getting cash that is cardless.
Wrapping it up
Talking about AI chatbots and debating about their implementation has become a trend. But when the idea is scrutinized in detail, it can be safely concluded that AI chatbots have the potential to revolutionize the banking sector and redefine the engagement of banks with consumers, especially millennials. The new change is set to provide a greater value to customers, thanks to the advancement in technology.