Chatbots Hold the Future of Finance & Banking Industry

Artificial Intelligence(AI) advancements have paved the way for ultimate growth and a flow of productivity for most industries worldwide. A lot of institutions, in general, are interconnected with the power of AI. Although AI is used in various ways, conversational AI, a.k.a chatbots, are especially in great use across industries. For example, the Banking and Financial Services sector is far ahead in using this particular AI technology: Chatbots. According to statistics, the chatbot market in this industry was valued at $586M in 2019 and was projected to grow steadily, reaching $7 billion by 2030.
Financial industries already have web applications. These apps serve to meet customer needs by replying to client inquiries and updating them with the latest trends & opportunities. However, these services have certain limitations, including but not limited to the absence of several functions and complex processes. Chatbots are the ultimate solution to create more comfort and a better customer experience. They are employed more efficiently to convey the information faster and more reliable.
Moreover, customers can get responses to inquiries resulting in more efficient work processes than their human counterparts. By using these conversational AI robots, banks and financial institutions reduce fraud and minimize error-prone conditions, leading to better client approaches for their future.

Advantages of chatbots

Time efficiency and service reliability are essential factors for Financial institutions. Chatbots can leverage the coefficiency of projects and maintain stable growth. They provide ongoing active status and better data input to the platform. Furthermore, they can communicate with clients in various languages simultaneously and instantaneously. Since chatbots are integrated into instant messengers, and over three billion people use them worldwide, the chances of chatbots notifications getting read are very high.

Use cases of Chatbots in industries

Chatbots are widely used in every sphere, making communicative and consumer-related processes faster and more iterative.
Fintech is the ever-developing sphere to meet customer satisfaction. A lot of transactions and operations take place on a daily basis. Let’s dive deep into the several use cases:

Client set-up. Banks and financial institutions use chatbots in order to communicate with their clients. Chatbots are the primary good at multiple tasks: setting up an account, renewing, updating, and document screening. In addition, they come in handy to answer the FAQs. As chatbots are getting better day by day, trust in them is rising as well.
A range of customer services. Who likes the old-long queues these days? Customers need to get into the line, register, and go through various other verification processes to access the services. Chatbots free people from all of those hassles. They help people transfer money, receive cash, get loans, and do many other operations. The user interface of chatbots is another excellent factor for why they are taking over. Happy customers, steady business growth.
Payment details. Chatbots securely store data and process transactions very quickly and easily. For example, with one command, they can look for bank account details of specific people in a second and carries out any operations automatically. These AI models are also helpful when clients want to get loans of any type: SBA, small finance, etc. They connect with the bank’s personal loan services and introduce loan types, ways, and requirements for taking loans.
Giving financial recommendations. Chatbots not only answer inquiries but can also help clients manage their wallets by notifying them about the latest transactions and cash-backs. Plus, they can also advise on how to save money, what to measure while spending, etc.
Detecting fraudulent activities. Mobile banking has become very safe with the help of the latest technologies like Natural language processing (NLP), Machine learning (ML), and Fraud Detection. When Chatbots converse with clients, they automatically note their way of texting so that they can detect unusual behaviors in the future. They are now the ‘right hands’ of bank employees too. Financial staff can rely on internal chatbots when they are in need of any data, latest statistics, and monthly figures.

We believe you have experienced banking chatbots at least once. Improvements in AI technologies have led to more popular choices for customers worldwide. The main tasks of banking chatbots are to provide a lifelong collaboration between a bank and a customer. Every process is carried out for the sake of customers. Banking chatbots are considered conversational AI, leading clients to reach their solutions better steadily.

Basic Advantages of Chatbots

They are 24/7 available. Therefore, customers can stay up-to-date with their financial data.
They are cost-effective. One-time development and little monthly maintenance expenses are all it takes to implement chatbots.
Feedbacks management. Chatbots can help receive, sort, and respond to feedback efficiently.
Fraud detection. No more phishing and fraud are possible with the high security of chatbots

Even though chatbots have a long way to go, they have a considerable impact on the future of the financial industry. Statistics show that the need for conversational AI robots is leveraging every second. By employing ML, NLP, and other features, chatbots can do wonders leading to great financial services.