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Redefining Banking Experience, from Branches to Chatbots

Redefining Banking Experience, from Branches to Chatbots

Lia LestariLia Lestarion August 20, 2018

Today, more than 100.000 chatbots exist on messenger apps, which include large financial players like Bank of America, Mastercard, American Express and Capital One. They have already invested in this technology to attract and retain new customers.

When was the last time you were standing in a queue in front of a bank teller? Couldn’t remember? Well, it’s obvious. The internet and smartphones have reshaped our banking experience. But still, as much as internet banking helped us, sometimes their website/apps are not that easy to use. Let’s be honest, how much of you actually loved your bank apps as much as you loved Go-Jek or WhatsApp? Traditional banking apps are struggling to keep up with our expectations, mostly because their User Experience design still lags two or three years behind current trends.

Some progressive banks have realized this issue and they turn to chatbots as a way to simplify the overall banking experience for their customers. So, in this post, we would like to share some insights about how Artificial Intelligence powered chatbots are redefining the banking experience.

Today, more than 100.000 chatbots exist on messenger apps, which include large financial players like Bank of America, Mastercard, American Express, and Capital One. They have already invested in this technology to attract and retain new customers. According to a report by Juniper Research, chatbots are expected to help save global banks over US$8 billion per year by 2022. The report also estimates that a single chatbot inquiry will save approximately four minutes in comparison to traditional call center inquiries.

Conversational banking is a relatively new concept that employs bots to speak the language of the customer-literally, and in a way that is personalized and engaging. While traditional banking is full of one-way interactions, a chatbot can be programmed to be contextually aware and connect consumers to the information they need, as the chatbot can be connected using API to access the services and systems within the bank. It has simplified banking to the extent where visiting a bank branch becomes even rarer and customers can save their time further.

With chatbots, customers can do banking transactions from messaging platforms as their preferred channels. They can view their recent transactions, check balances, or even transfer an amount without having to log in to a website or an app, all with the help of banking bots. For example, the customer might ask “Is there a branch at ABC location?“ or ”What is the phone number for the bank branch at XYZ location?” and the bots will immediately display the information in the chat window or say it over the phone. The bots will not only understand the customers’ needs but also the context. Making it possible for the bot to predict customer’s needs rather than react to them. This is made possible by new advances in machine learning and natural language processing (The Magic of Natural Language Processing (NLP)).

Today’s tech-savvy customers expect their banks to provide personalized support and faster resolution to issues. In those situations, chatbots could be extremely beneficial for banks to reduce their service volumes to more automated channels. When it comes to customer service, your banking bots could instantaneously resolve the issue with the right content as well as relevant answers by accessing the bank’s knowledge base.  Only when the issue is too complex will the bot hand-over the inquiries to human agents. Even in this scenario, the amount of inquiries that need to be handled by human agents has been dramatically reduced.

One of the banking chatbots that we launched in 2018 is Sabrina, a smart virtual assistant for Bank Rakyat Indonesia (BRI). These chatbots can help BRI customers to access information about banking and financial services. For example, Sabrina will help users to find the location of the nearest BRI branch, or even handle a customer’s complaint. Until today, Sabrina is available in Facebook Messenger, Telegram, and WhatsApp. Also could be accessed through natural conversations in Bahasa Indonesia.

Moreover, these banking bots could be delivering personalized offers, products, and services to customers, based on their profile data or their important life events, without being too pushy or annoying. Another interesting use case is programming your banking bots into a personal financial advisor, they will keep a track of all the customer’s transactions, analyze it to understand their spending habits, and give budget planning tips based on those data, hence this technology will help your customers to keep their finance under control.

In summary, conversational banking is new, but it is growing. AI and machine learning mean that banks can provide personalized and contextual responses to make banking even more convenient for customers. Beyond the advantages of being available 24/7, conversational banking offers a seamless customer experience, enabling customers to interact with their bank in a frictionless manner using their preferred channels and methods of communication.

Are you not sure how to choose the right conversational AI chatbot to power your business? Do not hesitate to reach us and our experts will help you with the right solution for your bank. Click https://kata.ai/enterprise for more information.