How Banking AI Chatbots Are Revolutionizing Financial Services

A simple chatbot that tells your account balance, fetches your statement, or transfers money does not necessarily require AI. While on the other hand, a purely conversational chatbot is powered by AI and requires a lot of data to learn. The first step in implementing a chatbot in banking is to determine the specific use case for your AI chatbot.

AI chatbots deliver instant responses to common customer queries, drastically reducing wait times. When you’re dealing with financial matters, questions and concerns can arise at any hour. AI chatbots don’t clock out at 5 PM; they’re available 24/7 to provide you with the information and assistance you need. This is especially crucial for global banks that serve customers across multiple time zones. According to a study by Cornerstone Advisors, around half of digital checking account applications get abandoned before completion.

What are the benefits of chatbots in banking?

Customers no longer need to visit physical bank branches for routine transactions, as most banking services are accessible through online and mobile platforms. However, this shift to digital channels has raised the bar for customer service and support. Many banks use chatbots to send customers timely reminders of account-related information, such as bill payment deadlines or last-day loan offers. With the progress of conversational commerce, chatbots can cross-sell for market products to customers. We have all received the latest offers from our banks on WhatsApp or SMS. With time, this will improve, and chatbots will become a key sales channel for banks.

Plus, it’s one of the few banking chatbots to have human escalation. Chatbots in banking are AI-powered virtual assistants designed to engage with customers in natural language conversations. These conversational AI tools use machine learning and natural language processing to understand and respond to real-time customer queries. Approximately 37% of the United States population is estimated to have interacted with a bank’s chatbot in 2022, a figure that is projected to grow. Among the top ten commercial banks in the country, all use chatbots of varying complexity to engage with customers. Financial institutions advertise that their chatbots offer a variety of features to consumers like retrieving account balances, looking up recent transactions, and paying bills.

Are Chatbots a Competitive Necessity For Banks?

The aforementioned use cases have been tested and applied practically by numerous banks throughout the world. Customers usually have to wait for extended periods of time before they get assistance from customer support agents. In fact, a study by Econsultancy states that 83% of customers need some form of assistance while making an online purchase. These queries also require a lot of patience, and are best solved by chatbots, who can provide immediate assistance. Banking chatbots can also help financial institutions detect and prevent fraud.

Imagine a personal financial advisor that’s available round the clock. With their advanced algorithms, these bots can predict customers’ spending habits and even dish out advice to help them stick to their budget. They communicate in plain, easy-to-understand language, making your customers’ financial journey less daunting. AI chatbots do more than just answer queries; they significantly reduce operational costs. By efficiently handling a high volume of customer queries, chatbots negate the need for a large customer service team.

Save 30% in Customer Support Costs

Use a chatbot to stay available 24×7, automate routine tasks and give quick replies to queries. With an AI banking bot, consult people on finances and money without any human intervention. Leverage the advanced features of AI chatbots for banking to streamline your workflow and get more effective. Let artificial intelligence make people feel comfortable seeking information and sharing sensitive information. Ada is a Banking AI chatbot that helps banks and financial institutions provide personalized customer service. Sadly, there currently needs to be a plan for Ada to integrate with other banking software or systems, which could limit its applicability and effectiveness.

• We are fast advancing to a time when it may be difficult for a customer to guess whether they just chatted with a human or a machine.
• A lot of banks are using chatbots to handle internal documentation, IT support, cross-team information exchange, etc.
• Plus, it can send instant alerts if there is suspected fraud in the account.
• From the historical point of view, digitization of banks began with ATMs and then telephone banking.
• Generative AI applications in banking are also making a significant impact on investment operations.

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