AI And Chatbots For Financial Services
Join The Discussion | Ai4 Finance 2019
The way that customers are interacting with financial services institutions is changing. In banking for example, the movement over the past few decades has been from in-person to web to mobile. Many believe that the next big shift in the way that customers interact with their financial services institutions will be from mobile to “conversational.”
In order to capitalize on this trend, companies are building conversational interfaces commonly referred to “chatbots.” There are many benefits for both the customer and the enterprise. On the customer side, it’s access to immediate service at any time and from any place. On the enterprise side, it’s cost savings (massive amounts of call centers and customer service representatives that are no longer needed) as well as increased access to customer data.
A new study from Juniper Research has found that the operational cost savings from using chatbots in banking will reach $7.3 billion globally by 2023, up from an estimated $209 million in 2019. This represents time saved for banks in 2023 of 862 million hours, equivalent to nearly half a million working years.
While customer service agents in call centers are limited by energy, emotional capacity, ability to understand the customer’s needs, and knowledge of the industry, bots can deliver consistent results, functioning day and night in an environment that’s under a process of continual learning and self-improvement.
Leveraged effectively, financial services companies are able to use AI-driven chatbots to meet the demands of “hyper personalization” that today’s customers have come to expect – a trend lead by the big tech companies like Amazon and Facebook.
According to one source¹, the best bots share the follow commonalities:
- Superior Automatic Speech Recognition (ASR): Trained for higher vocabulary ranking; provides context intelligence and enables natural language processing.
- Speed to Market: Pre-built bots help the bank to begin the Conversational Banking journey; a bot builder framework enables the bank to extend and customize bots, and build new bots to meet their tactical and strategic Conversational Banking objectives.
- Built for Banking: Enterprise-grade and purpose-built for banking.
- Omnichannel: Deployment of a single bot configuration across many channels, with centralized management capabilities.
- Flexible Deployment Options: On premise, private cloud, public cloud, or a hybrid.AI and ML
- Empathy Engine: In addition to essential customer/transaction servicing, also helps to optimize the customer’s financial behavior and enables intelligent goal setting and fulfillment.
- Differentiation: Application program interface (API) gateway and marketplace provides a common digital API that can be used by any channel to construct truly differentiated user experiences and offerings.
Here are some capabilities to learn the many ways that AI powered conversational interfaces are changing the way customers interact with their financial services:
- Notify customers about transactions
- Assist customers in money management
- Provide retail banking customers their credit score
- Enable customers to set and manage their budgets
- Sending payments
- Changing passwords
- Setting up appointments
- Help customers pay bills
- View account balances
- Transfer money between accounts
- Providing foreign exchange rates
- Providing branch and ATM locations