Banking chatbots can help clients execute various tasks – from basic repetitive tasks such as monitoring the balance of accounts and paying credit card bills to more complicated ones such as opening a bank account, providing real-time financial analytics, and processing loan requests.

FREMONT, CA: Today, every organization seeks to incorporate artificial intelligence into its business and operations strategy, and banks are no different. Rising customer expectations and emphasis on customized, digital experiences are pushing banks to design, test, and deploy new consumer technologies. Among them is the not-so-humble chatbot, which is fueling a new era in conversational banking.

The Concept of Conversational Banking

In essence, conversational banking is a concept where financial issues are addressed by voice or text interfaces. Instead of pressing the buttons on the Banking App Graphical User Interface (GUI), you speak or send text messages to an AI program that runs functions for you. Built specifically to promote this mode of financial management, banking chatbots are the front lines of the conversational banking world.

Banking chatbots can help clients execute various tasks – from basic repetitive tasks such as monitoring the balance of accounts and paying credit card bills to more complicated ones such as opening a bank account, providing real-time financial analytics, and processing loan requests. In more than one way, chatbots today easily take over the teller or the relationship manager's position as the first and primary point of customer interaction with a bank. And while we haven't seen a retirement planning bot yet, with the exponential development of AI technologies, it's only a matter of time.

For now, let's take a closer look at how chatbots have a positive impact on the banking industry.

Lower Operational Costs

Compared to human workers, chatbots are less expensive. There is a one-time production cost for a chatbot that has to be updated with information over a short period of time before it can manage thousands of consumers over multiple channels. The cost of training and hiring workers for the same job is even higher. Moreover, building a chatbot that functions on numerous consumer touchpoints can be even cheaper than building a custom banking app, especially while running on a cloud-based framework.

More Scope than an App

Unlike an app, a chatbot can run on channels that the customers already visit, making it easier to provide help, foster leads, and build an omnichannel customer experience. From social media sites such as LinkedIn and Facebook messenger to voice assistants such as Siri, Bixby, Alexa, and Google Assistant, chatbots help you to reach your customers on their terms.

Analytics and Guidance

Many of the more complex AI banking platforms are capable of analyzing all the data and offering insights that can enhance your financial management. From purchase patterns, spending behavior, and credit information to budget-making and cost savings, an AI chatbot is designed to be a personal money manager in ways that humans can hardly match.