Chatbot for Banking

Chatbot for Banking Industry

by Sachin Kaushik,on Nov 01,2019

The increasing sophistication of mobile technology has helped us exchanged details, authenticate and conduct transactions seamlessly. Information is literally available at our fingertips, eliminating the need for human support. The only area where human interaction has had a lead over technology is the personal touch during a conversation, especially in the case of relationship-based interactions. However, with all major innovators, including technology giants, putting their weight behind technology that provides human-like conversation experiences, even that edge seems to be diminishing. A platform designed to understand, learn and converse like a human and answer ad-hoc queries in real time is commonly referred to as a Chatbot.

Chatbot utilizes application programming interfaces (APIs) to integrate with data management platforms. This allows them to analyze the extracted data as well as web- and mobile-based user interfaces and deliver the necessary insights to the end customer.

Conversational banking is nothing but communication between a bank and its customer through text, voice or visual interface. It adds that extra touch of personalization in customer relationships. Conversational banking, though highly effective, comes with the hardship of effective implementation given the sheer volume of customers banks serve (or any B2C business for that matter). That is why AI becomes extremely important in conversational banking. With Chatbot and virtual assistants, banks can serve their customers effectively without spending huge amounts of time, resources and manpower.

So when Artificial Intelligence became viable for enterprises, it was only a matter of time before banks turned to AI for smarter automation solutions to meet the ever-growing expectations of customers!

Banks are increasingly investing in AI-powered Chatbot as a smarter way to acquire, engage and serve customers. To get a better understanding of how Conversational AI has been beneficial to the banking sector, let us first take a look at some examples of successful implementations, from across the globe. These bots could do simple tasks like show an account balance when given a specific command.

As Chatbot continue to become more advanced, customers will see a shift in focus from mobile banking to conversational user interface (CUI) in banking. CUI technology mimics a human conversation. Major tech giants such as Amazon and Apple have laid the groundwork for familiarizing consumers with these conversational interfaces. In order to be on the cutting edge, banks need to have a conversational banking strategy as well.

A conversational banking strategy should include investing in the right human talent with skills in artificial intelligence development and natural language processing experts, who can keep up with technological advancements and actively integrate them into existing tools. Concurrently, banks will need an increased focus on digital security to protect sensitive information. This could include investments in voice biometrics to verify that the customer is talking to the bot and not a stranger who has their phone.

AI will make progress in banking and financial services, given the successful pilots of initial AI projects. Predictive analytics will help in making sense of the humongous amount of data banks receive. Trading and investments will have more avenues for predictability when tireless machines process the data intelligently. Some banks have already started leveraging AI for compliance management, fraud, and money laundering detection. But most importantly, Chatbots are going to get smarter. With significant advances in AI and Machine Learning, Chatbot will get better and better.

Chatbot for Banking Industry

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