Equipped with AI and machine learning, chatbots have come a long way since ELIZA, the first chatbot that was created in 1966. Today, chatbots have become a vital part of the banking industry, helping banks uplift their services. Let’s look at how bots, often touted as ‘artificial humans’, are revolutionising the banking sector.

Enhancing customer satisfaction

Chatbots are helping banks enhance customer satisfaction by answering a host of their queries within seconds. Today, most customers want prompt replies to their questions and the IVR system often puts their calls in queues. Customers, pressed for time, may find this undesirable. This is where chatbots play an essential role by replying to their queries in real time.

Bots answer common questions regarding account balance, utility payments, balance transfer, ATM locator etc., in a seamless and time-bound manner. With predictive analytics, the bots pick up the customer’s intent and answers accordingly.

Also, some banks have developed bots that help customers block their cards instantly in case of a theft or misuse. They ask certain question related to the card and an OTP is sent to the registered mobile number. Once fed, the card gets blocked instantly. With uninterrupted support 24 x 7, chatbots are creating meaningful customer relationships.

Suggesting products and solutions

Sophistication has led to chatbots becoming more action-oriented. Apart from answering common FAQs related to banking operations, today, bots go a step further to suggest customised products to customers. For instance, if a customer is enquiring about home loan or loan against property, the bot lists out such products offered by the bank.

Also, it helps customers calculate their loan eligibility and the loan amount based on the inputs provided. This goes a long way in enhancing revenues for banks in the long run.

Helping banks focus on areas that need human intervention

With chatbots taking care of common queries related to bank operations, bank representatives can focus on areas that need human intervention, such as helping customers know the nuances of their offerings and how it can have an impact on their overall financial health.

Though chatbots have been a disruptor for the industry, it can’t completely replace humans as most customers after having general knowledge about products would want a face-to-face interaction with the concerned representatives to know the finer aspects.

For instance, if it’s a loan after knowing the eligibility and the amount, a customer would prefer a direct discussion with bank authorities related to the flexibility of rate of interest, tenure, processing and prepayment charges among others.

Aiding banks to save

Chatbots can handle multiple queries simultaneously. Banks deploying bots can handle millions of queries in a month. Employing agents to do so is expensive and time-consuming. Hence, bots are helping banks to save up-front costs and the Juniper Research study suggests that banks could save over USD 8 billion by 2022 with the help of bots.

Banks integrate bots either on their websites or messengers on social media platforms such as Facebook whereby customers can type and find solutions to their queries.