AI and chatbots are showing up more and more in banking and finance. Human-to-machine communications have existed for a while, but as technology has evolved, these communications have become a daily occurrence. Conversational user interfaces are the latest two-way conversations between humans and computers using natural language processing (NLP).
Customers have evolved in their banking; they are more likely to depend on online or mobile app banking than ever before. Chatbots provide an immense amount of competitive advantages to financial institutions, and improving overall customer experience is one of the essential benefits they can provide.
Ways Chatbots Can Improve Your Customer Experience
When it comes to helping out your customers, there are several ways in which chatbots can provide significant improvements. Some of the key aspects include:
Answering Frequently Asked Questions
One of the main reasons people use chatbots is because they are convenient. People want fast, easy, and comprehensive answers to their banking related questions. Examples of such are:
- Frequently asked questions, such as replacing a lost card, creating a joint account, and more.
- Product inquires and information such as which bank account to choose, rewards programs, credit card rates, and more.
- Links to FAQ pages, so they can look up answers on their own.
Personal Finance Assistance
Customers trust their bank to help them manage their money correctly. 85% of Canadians feel confident about modern banking technologies. A chatbot that provides financial assistance to customers can help customers trust their bank more. By introducing a chatbot as a communication channel, companies offer their customers faster and easier access to information about products and services. In this way, artificial intelligence enables companies to improve their internal processes and enhance relationships with their customers.
Examples of such financial assistance could be:
- ATM locator
- Spending analysis
- Account balance check
- Financial wellness notifications and more
Chatbots are designed to engage with customers. When customers are on your landing or application pages, they can be greeted by a chatbot. The chatbot can help guide them through creating a new bank account or a different service. Chatbots do not only help with up-selling and cross-selling but improves customer service and increases brand loyalty. Conversion rates are also affected by chatbots; when a bank sends an email campaign (outbound marketing), the conversion rate is just about 0.8%. However, with chatbots, when a customer asks a chatbot about a particular product (inbound marketing), the conversion rate is about 80%.
Performing Core Banking Activities
Drift's 2019 State of Conversational Marketing report showed that people mainly used chatbots to answer questions. But people were also interested in using chatbots to handle core banking activities such as paying bills. Having a chatbot handle certain banking activities can improve the customer support a financial institution offers, such as transferring money between accounts, paying invoices or bills, applying for loans, making in-person appointments, and more.
Helping Human Agents
A chatbot can redirect conversations to a human agent. This allows customers to communicate with the agent seamlessly on the same channel. Chatbots can redirect someone to Contact Centres in several cases:
- The chatbot has no answer to the questions asked;
- A customer requests a conversation with an agent — the chatbot automatically recognises the intention and sends a request to a contact centre
- A business process requires agent intervention
In all cases, the user continues to communicate with the agent on the same channel. Communication between the agent and customer is stored in the database for the analysis and reporting.
These are just a few ways that artificial intelligence and chatbots can elevate the customer experience, which in turn increases customer loyalty and draws in new customers.