What is a banking chatbot and why it is important?

Conversational ai for banking

The terms chatbots and AI have now become a part of our daily conversation. In this digital era, there is hardly an industry that does not know what chatbot is. Still, to be on the same page, a banking chatbot is an AI-powered system integrated into your website, social media channels, WhatsApp, etc. to achieve higher customer experience, operational efficiency, and boost revenues. Here’s everything that you need to know about banking chatbots and why you should be considering chatbots:


Know Banking Chatbots in Simple Terms:

Conversational AI chatbots are intelligent assistants in digital form supported with an artificial intelligence-based computer program. These AI chatbots communicate with humans in a very natural form to resolve their queries and to assist them as required.

The core purpose of banking chatbots is to provide the customers with prompt service and to improve the operational efficiency of the bank and its employees. Besides, Conversational AI in banking also assists the staff to distribute their workload. Conversational banking bots assist customers in most banking scenarios, from attending to your customers instantly to helping them out with whatever they need, chatbot serves it all right. It understands human languages, supports voice & text-based communication. The bots do get trained based on the user’s intent and utterances.

A recent study indicates the use of Conversational AI for banking showing that around 32% of the BFSI sector are already using AI chatbots. Another 37% are looking to initiate the same in the next 24 months or so.

Reasons to Adopt Conversational AI Banking Chatbots:

1. Seamless Assistance to both — Bank Executives and Customers:

Conversational AI Chatbots understands the customer concerns and assists them just right, round the clock. In case, there comes a moment when you need human assistance, the bot carries forward your entire conversation to the human executive. The chatbot assists bank customer executives with the needful data and it even responds to a few queries that the executive could use for reference. Chatbots not only serve customers but can also be used to assist employees. They can be used to schedule meetings, send messages between employees and much more.

2. Omnichannel support

The best feature of conversational AI is, it functions on an omnichannel basis. An ai-driven chatbot solution can connect with your customers across multiple channels like Website, Social Media, WhatsApp to improve your customer experience and engagement.

3. Automated Notifications and Reminders

In recent times, various banks are using Conversational AI chatbots to send timely notifications & reminders to customers. Using financial bots you can remind your customers about their upcoming deadlines for loans, pending payments, their credit scores, etc.

4. Helping Customers with Financial Advisory

Banks today with the help of conversational AI chatbots can offer financial advice to their customers, be it suggesting the right banking instruments to the appropriate insurance schemes etc. It helps customers in getting equipped with the required knowledge about any new financial schemes. These bots can also be intelligent enough to track the spending habits of customers and lead them to better financial management

5. Understands the Natural and Vernacular Language

The AI chatbot can be trained to understand most of the widely spoken human languages. Even if the customer is talking in his regional language, the chatbot can be trained to respond accordingly and answer him correctly. To go a bit further, bots may also be trained to understand SMS lingo and respond to the queries aptly

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The dream of wholly personalized banking services on a large scale is now a reality because of Conversational AI chatbots. With some of the prominent features such as 24/7 customer support, financial advisory through bots, payment transactions, omnichannel support, we are certain that Conversational AI chatbots in the banking industry are there to sustain in the future only to enhance customer engagement to an unprecedented level.

Nuacem AI, is a Conversational AI-Powered Cognitive Customer Engagement platform. We’ve worked with many banks and BFSI institutions on various use cases wrt to their industry in solving their day-to-day challenges in customer support. In case you are looking for chatbot solutions to address your customer engagement problems in your banking institutions, we would be glad to assist you. You may please reach us here.

What is a banking chatbot and why it is important? was originally published in Chatbots Life on Medium, where people are continuing the conversation by highlighting and responding to this story.