How Useful Is Chatbot for Banking?

Chatbots have emerged as the most effective technological solutions for banking in recent times. With these, a lot of routine tasks can be automated which helps in improving customer support. In the banking industry, chatbots are getting quite popular as they can handle basic tasks like balance inquiry, loan queries, account details etc. very efficiently. This leaves the customer service representatives free for resolving complex issues.

What Is Chatbot?

Chatbot is a piece of software that is designed to converse with a person. It listens to what a person is saying and then responds with relevant information.

Here are some of the facts that illustrate the importance of chatbot for banking sector.

Economical Option: When compared with the manpower required for customer support, chatbots are a relatively inexpensive option. They require less coding than what is required in standalone banking apps and hence are easy to develop. As the data for chatbots is stored in cloud-based systems, they don’t require expensive data storage and hence are easy to maintain.

Easy to Use: They are developed to facilitate two-way communication, far more intuitive than a traditional banking app and very easy to use. No download is required and it gives a personalized experience through machine learning. People often get irritated if they have to call a customer care number of the bank as it requires them to input various numbers and keep waiting before they are finally connected to a representative. Chatbots, on the other hand, are quick with instant chat. Unless you get to resolve complex issue, chatbots are ideal solutions for your basic banking needs with live conversation and quick response.

Financial Advisor: With the advancement of Artificial Intelligence, the new age banking chatbots have access to a customer’s data. Thus, they can provide advice related to their spending habits, set and also manage budgets, provide credit scores etc. This opens up a field of giving advice and recommendations for better money management, which helps the banks gain more confidence in their customers.

Employee Assistance: It’s not just the customer’s front that chatbots are beneficial. In fact, the bank employees also get benefited from it. Chatbots can deal with all the service-related calls so that the agents can concentrate on selling and resolving complex issues. They can also be used to train the employees on regular processes instead of a human mentor. Many banks are extensively using chatbots for technical consultancy and HR support.

Round the Clock Digital Support: Maintaining a 24/7 customer support is not easy. It requires a lot of resources. The instant chat feature using chatbots, on the other hand, is easy. The customers also feel that they are always connected to their bank, which helps in attracting and retaining customers.

The chatbots still have some limitations. But, as the improvements and innovations are happening in artificial intelligence and machine learning, they will be leveraged and we will see the limitations of chatbots disappearing and its functionality increasing.

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