Today, AI and chatbots are instrumental in creating a stellar customer experience in the banking and financial services space — in practice, known as conversational banking. Able to provide 24/7 support, fraud detection, risk assessment, and so much more—they’re fast, they’re efficient, and they’re more cost-effective than human agents for reducing resolution times.
For leading financial providers, combining intelligent automation and conversational messaging scales personalized service. A customer can ask a bot a question, transition seamlessly—in the same channel, in real-time—to a human if needed, and then go back to a bot when the time comes. This considered approach lets businesses solve issues without expensive human interaction while also empowering agents to be more responsive, and field more inquiries at once.
It is estimated that the cost savings from the use of AI and chatbots in the financial services sector will reach 7.3 billion USD by 2023. This study also suggests that banks will save 862 million hours, equivalent to nearly half a million working years.
The financial services sector recognizes the importance of using chatbots for conversations that can easily be automated. Yet, three out of four financial services providers agree that they are not prepared to implement AI in their operations.
Top benefits of chatbots
Cost optimization: AI and chatbot are not employee replacement technology. They have a symbiotic relationship with human agents to provide a great customer experience. A chatbot is expected to cut back 22 percent in costs for financial service providers by 2030.
Proactive customer engagement: Customers mention 24/7 support as the biggest benefit of chatbots for the online services they use. They’re either greeted by a chatbot or routed to an agent to answer queries that are beyond the capabilities of a chatbot. From sending customized offers for up-selling and cross-selling products to providing relevant information by pulling out their transaction history from the CRM, chatbots can do it all! You can also push notifications dynamically using segmentation and personalization.
Improved operational efficiency: Using Robotic Process Automation (RPA), a technology that combines robotic automation and artificial intelligence, a Singaporean bank has reduced the time taken to re-price home loans from 45 minutes to 1 minute. While the AI technology crunches numbers in the back-end, your employees can use the time to work on more complex problems.
Automated customer feedback: Most staff do not solicit feedback unless it’s a part of the process, and customers hesitate to offer feedback because they think it gets lost in the black hole of information. Fifty six percent of respondents said conversational surveys are easier to express their opinions. Using chatbots for customer feedback will help financial services providers improve customer confidence that their feedback will be taken seriously. A conversational bot can alert you to a problem, or nudge in the right direction to keep the customers satisfied.
68 percent of digital banking users report frustration with their banking experiences. Meanwhile, coronavirus is casting a spotlight on fintech, as consumers and the U.S. Treasury Department alike embrace its promise of ease and convenience. In reference to the U.S. government passing a 2 trillion stimulus package in March, Treasury Secretary Steven Mnuchin stated “any fintech lender will be authorized to make these loans”—a historic first. In April, fintech platforms earned further validation when the Internal Revenue Service allowed eligible recipients to elect to receive stimulus payments electronically. All of which is to say, legacy financial services companies, have just as much -- or maybe even more to prove -- now than fintech.
One example is ING, founded in the 18th century. It's voice-driven chatbot, "Inge," is available in ING's mobile banking app. Much like Apple’s Siri, INGe not only generates account statements and makes payments in a click, but also helps with money management and offers financial advice.
Read more about how ING has been a pioneer in differentiating through communication.
Finserv providers like Citi, JP Morgan Chase, and American Express use Persado, an AI-powered technology for tailored brand messaging.
Persado creates messages based on the data that resonates the most with customers, which enables financial services providers to create a meaningful dialogue with their customers.
Citi has increased their email open rates by 70 percent, and the click-through rate by 114 percent with Persado.
Forward-looking financial services are adopting AI to improve their customer experience because retention costs are much lesser than acquiring new customers. The probability of selling to an existing customer is about 70 percent, while the probability of selling to a new lead is just 20 percent.
Especially now, trust is a key differentiator: only 56 percent of respondents trust their insurer to look after their financial well-being.
Customers don't mind sharing personal information if it helps financial services providers improve their interaction experience. Here’s how you can boost customer trust with an AI-powered chatbot.
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