{"id":611,"date":"2019-03-16T16:04:36","date_gmt":"2019-03-16T10:34:36","guid":{"rendered":"https:\/\/cyfuture.com\/blog\/?p=611"},"modified":"2020-05-12T18:25:34","modified_gmt":"2020-05-12T12:55:34","slug":"how-do-chatbots-play-a-vital-role-in-the-banking-sector","status":"publish","type":"post","link":"https:\/\/cyfuture.com\/blog\/how-do-chatbots-play-a-vital-role-in-the-banking-sector\/","title":{"rendered":"How do Chatbots play a vital role in the Banking Sector?"},"content":{"rendered":"\n<p style=\"text-align:center\"><strong><em>\u201cChatbots\nrepresent a new trend in how people access information, make decisions, and\ncommunicate.\u201d<\/em><\/strong><\/p>\n\n\n\n<p style=\"text-align:center\"><strong><em>\u2014 Christie\nPitts, Verizon Ventures.<\/em><\/strong><\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>By means of <a href=\"https:\/\/cyfuture.com\/chatbot.html\">AI-powered chatbots<\/a>, 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:<\/p>\n\n\n\n<ul><li>44%\nof bank account holders prefer to be assisted by voice assistants while\ntransferring money, due to privacy concerns.<\/li><li>Chatbots\nin the banking sector, by 2020, will lead to cost savings of more than $8\nbillion.<\/li><li>85%\nof customers will manage associations with banks via chatbots by 2020.<\/li><li>Chatbots\nsave&nbsp;between $0.50 and $0.70 per customer interaction for banks.<\/li><li>By\n2022, banks will witness chatbots handling 90% of customer interactions.<\/li><\/ul>\n\n\n\n<h2>Here\u2019s the list of top 10 big banks using chatbots to boost their business:<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nBank of America<\/p>\n\n\n\n<p>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nJPMorgan Chase<\/p>\n\n\n\n<p>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nCapital One<\/p>\n\n\n\n<p>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nHSBC<\/p>\n\n\n\n<p>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nWells Fargo<\/p>\n\n\n\n<p>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nAlly Bank<\/p>\n\n\n\n<p>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nBarclays Africa<\/p>\n\n\n\n<p>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nDBS Singapore<\/p>\n\n\n\n<p>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\nRoyal Bank of Scotland<\/p>\n\n\n\n<p>10.&nbsp;    Santander U.K.<\/p>\n\n\n\n<p>Apart from this, customers are\nalso enjoying phenomenal banking experience owing to chatbots. How? Let\u2019s find\nout together:<\/p>\n\n\n\n<h2>Personalized banking &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/h2>\n\n\n\n<p>There was a time when customers\nwere frustrated with unnecessary delays and lack of personalization. Some of\nthem used to switch from one bank to another owing to human-caused\ninconvenience. Since the arrival of chatbots, however, the life of both\ncustomers and banks has become easier.<\/p>\n\n\n\n<p>These days, because of chatbots, individualized banking is possible. What\u2019s 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.<\/p>\n\n\n\n<p>Furthermore, customers don\u2019t 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.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p style=\"text-align:center\"><strong><em>Here, we would like to give an example of personalized banking: Erica is a voice and text-enabled chatbot deployed by BofA\u00a0(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.<\/em><\/strong><\/p>\n\n\n\n<h2>Scintillating customer service <\/h2>\n\n\n\n<p>For any business, it is\ninstrumental to take care of customer needs perfectly. This is so because if\nthe desired assistance gets provided in the hour of need, you can expect\ncustomers to stay loyal to your brand for a long time span. It goes without\nsaying both strong customer relationships and better business growth go hand in\nhand.<\/p>\n\n\n\n<p>Sometimes, customers have\nproblems regarding money transactions, fixed deposits, or something else. At\nthis point in time, they seek a quick response and on-demand resolutions. This\nis where the prominence of chatbots emerges, as they offer satisfactory\nresolutions in a jiffy during customer service interactions.<\/p>\n\n\n\n<p>The most impressive factor about\nchatbots is that they can offer one-stop solutions 24&#215;7. This is prominent from\nthe customer\u2019s point of view. It is so because there\u2019s a likelihood that\ncustomers want to block their debit\/credit card after losing it or know about some\nunknown deductions. Evidently, they aren\u2019t going to pay a visit to a bank at\nmidnight for the same. That\u2019s why having AI-powered bots to provide\nround-the-clock assistance is paramount.&nbsp;&nbsp;\n&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/cyfuture.com\/blog\/chatbots-live-chat-a-sprint-to-sublime-customer-service\">Chatbots\n&amp; Live Chat | A Sprint to Sublime Customer Service<\/a><\/p>\n\n\n\n<h2>Individualized marketing experience <\/h2>\n\n\n\n<p>Well, we aren\u2019t going to reveal\nanything surprising by telling you that banks contact their customers regarding\nupcoming offers\/services from time to time. But the thing that is worth\nmentioning is impersonalized marketing often causes annoyance, which, in turn,\ncould trigger the problem of customer defection. <\/p>\n\n\n\n<p>This is where chatbots come to the\nrescue as they understand human behavior, and all thanks goes to <a href=\"https:\/\/cyfuture.com\/blog\/machine-learning-a-new-wave-of-intelligent-automation\">machine\nlearning (ML)<\/a>. Owing to AI-powered chatbots, banks succeed in launching individualized\nschemes, which as a positive outcome, gives customers an amazing marketing\nexperience.<\/p>\n\n\n\n<p>Besides profitable marketing, chatbots also offer great help to banks by gathering customer feedback. This paves the way for incredible business growth.<\/p>\n\n\n\n<p><strong><em>Bill Gates, a business tycoon, once said, \u201cWe all need people who will give us feedback. That&#8217;s how we improve.\u201d<\/em><\/strong><\/p>\n\n\n\n<p>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).<\/p>\n\n\n\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/cyfuture.com\/blog\/the-great-bot-battle-ai-chatbots-vs-human-powered-live-chat\">The Great Bot Battle: AI Chatbots vs. Human Powered Live Chat<\/a><\/p>\n\n\n\n<h2>Final\ntakeaway <\/h2>\n\n\n\n<p>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\u2019s a high possibility that chatbots will make a big positive impact on customer lifecycles in the near future.<\/p>\n\n\n\n<p>By writing this blog, we have\ndiscussed how chatbots play a crucial role in the banking sector. While having\na read through this write-up, you may have already got the idea that an unparalleled\nbanking experience is on the cards as chatbot technology is evolving rapidly.<\/p>\n\n\n\n<p>We hope you have got all the\nrequired information without coming across any problem while reading. If you\nthink that this blog can be improved, we look forward to your comments.<\/p>\n\n\n\n<p>Thanks for being with us till the\nend!!&nbsp;&nbsp;&nbsp; <\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cChatbots represent a new trend in how people access information, make decisions, and communicate.\u201d \u2014 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 [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":612,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[151,133],"tags":[26,25],"_links":{"self":[{"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/posts\/611"}],"collection":[{"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/comments?post=611"}],"version-history":[{"count":22,"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/posts\/611\/revisions"}],"predecessor-version":[{"id":29100,"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/posts\/611\/revisions\/29100"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/media\/612"}],"wp:attachment":[{"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/media?parent=611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/categories?post=611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cyfuture.com\/blog\/wp-json\/wp\/v2\/tags?post=611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}