“Chatbots represent a new trend in how people access information, make decisions, and communicate.”
— Christie Pitts, Verizon Ventures.
In this modern era, every corporation is familiar with the prominence of AI-based applications. The banking sector is one of the early adopters of the artificial intelligence (AI) technology. After deciding to bring AI-based systems into operations, banks have witnessed an exponential growth in terms of CX levels, brand image, and so on.
By means of AI-powered chatbots, nowadays, banks are living up to customer expectations sans a sweat. After going through several industry reports, we have collected some stats that will clear all doubts regarding why chatbots are prominent features for banks, so have a look:
1. Bank of America
2. JPMorgan Chase
3. Capital One
5. Wells Fargo
6. Ally Bank
7. Barclays Africa
8. DBS Singapore
9. Royal Bank of Scotland
10. Santander U.K.
Apart from this, customers are also enjoying phenomenal banking experience owing to chatbots. How? Let’s find out together:
There was a time when customers were frustrated with unnecessary delays and lack of personalization. Some of them used to switch from one bank to another owing to human-caused inconvenience. Since the arrival of chatbots, however, the life of both customers and banks has become easier.
These days, because of chatbots, individualized banking is possible. What’s more, the hassle of a continuous rise in waiting time, long queues, etc. has reduced to a large extent. This points to low CES (customer effort score), and all this is possible due to AI-powered chatbots. As a positive consequence, banks are heaving a sigh of relief.
Furthermore, customers don’t have to pay a visit to the bank regarding checking their account balance, knowing the latest schemes, getting a monthly statement, updating their details, etc. as all these tasks can be done within a couple of minutes by virtue of chatbots. This saves a significant amount of time for both parties (customers and banks), which consequently, leads to high CX levels and better business productivity.
Here, we would like to give an example of personalized banking: Erica is a voice and text-enabled chatbot deployed by BofA (Bank of America). It lends customers a helping hand in making smarter and faster banking decisions. Erica sends customized notifications, suggests how to save money, and helps in paying bills, making seamless transactions, and much more.
For any business, it is instrumental to take care of customer needs perfectly. This is so because if the desired assistance gets provided in the hour of need, you can expect customers to stay loyal to your brand for a long time span. It goes without saying both strong customer relationships and better business growth go hand in hand.
Sometimes, customers have problems regarding money transactions, fixed deposits, or something else. At this point in time, they seek a quick response and on-demand resolutions. This is where the prominence of chatbots emerges, as they offer satisfactory resolutions in a jiffy during customer service interactions.
The most impressive factor about chatbots is that they can offer one-stop solutions 24×7. This is prominent from the customer’s point of view. It is so because there’s a likelihood that customers want to block their debit/credit card after losing it or know about some unknown deductions. Evidently, they aren’t going to pay a visit to a bank at midnight for the same. That’s why having AI-powered bots to provide round-the-clock assistance is paramount.
Well, we aren’t going to reveal anything surprising by telling you that banks contact their customers regarding upcoming offers/services from time to time. But the thing that is worth mentioning is impersonalized marketing often causes annoyance, which, in turn, could trigger the problem of customer defection.
This is where chatbots come to the rescue as they understand human behavior, and all thanks goes to machine learning (ML). Owing to AI-powered chatbots, banks succeed in launching individualized schemes, which as a positive outcome, gives customers an amazing marketing experience.
Besides profitable marketing, chatbots also offer great help to banks by gathering customer feedback. This paves the way for incredible business growth.
Bill Gates, a business tycoon, once said, “We all need people who will give us feedback. That’s how we improve.”
Customer feedback is the key to continuous improvement. The primary reason behind this is positive reviews help to streamline current banking services, while negative ones aid in rectifying hidden ambiguities. The overall result of this leads to better customer retention, positive WOM, high profitability, lifted CX (customer experience) levels, and improved CLV (customer lifetime value).
As we have already revealed in the starting, the banking sector is one of those industries that have had brought chatbots into use when AI was in its initial stages. But the fact that will leave you stunned is that banks have just tasted a tiny bit of the high success that chatbot technology can actually offer. If industry reports are anything to go by, there’s a high possibility that chatbots will make a big positive impact on customer lifecycles in the near future.
By writing this blog, we have discussed how chatbots play a crucial role in the banking sector. While having a read through this write-up, you may have already got the idea that an unparalleled banking experience is on the cards as chatbot technology is evolving rapidly.
We hope you have got all the required information without coming across any problem while reading. If you think that this blog can be improved, we look forward to your comments.
Thanks for being with us till the end!!