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Chatbots in Financial Services- Top 4 Reasons To Have It Today!

Recently the Drift published a report that shows the use of chatbots has increased by a whopping 90% in 2020 from 2019. However, only 36% of financial services use chatbots. Chatbots in financial services offer quick and simple solutions to providing payment tools, reporting a lost card, checking account information, or providing wealth management advice. In this article, we will take you on an elaborated journey on why chatbots are the bread and butter of financial institutions today.

Benefits of Chatbots in Financial Services

In industries such as healthcare and financing, which depend on handling a large influx of consumer calls and queries, chatbot-based AI can connect with people and respond to their needs, thereby reducing the need for people to care for them.

Chatbots have become the first port of call in many industries, and financial services are no exception. Read ahead to know the top 4 benefits of chatbots in financial services-

1. Fast and better customer experience

The primary intention of any business is customer service. Similarly, the main motive of a financial institution is to provide a better customer experience.

Chatbots in financial services have the central purpose of getting technology to make an improved and positive customer service experience. Most chatbots function as an optimized support system for customer-bank interactions, such as automating routine tasks, initiating rapid responses to customer queries, and sending personalized messages. 

This is why chatbots are seen as the future of financing, owing to their ability to talk face-to-face with customers.

Chatbots in financial services can enhance the omnichannel customer experience and extend its reach. Chatbots have the potential to help customers with a variety of financial activities in an entertaining way.

The answer commonly asked questions and permits financial institutions to assign their staff to solve complex customer service problems to avoid time and money. Chatbots’ conversation interface gives customers a helping hand.

Similarly, their use does not require much effort from the user. According to the latest statistics, 86% of financial institutions agree that the use of chatbots boosts their engagement with millennials.

2. Train your staff more effectively

Chatbots not only improve customer service but also help the staff of the financial institution automate routine tasks.

With the use of chatbots in financial services an average of 4 minutes can be saved per customer. To elaborate we can say that chatbots take 60% less time than traditional call centers. However, can chatbots replace capital manpower in any financial institution?

The answer is no. On the contrary, chatbots can be effectively used to train and serve your employees. Chatbots can be used in financing to manage internal documentation processes, train new employees and provide automated support for long and time-consuming tasks.

By using chatbots in financial services, you can automate repetitive customer service tasks. Thus, manage the work that is time-consuming and affects the performance of your support team.

The inclusion of chatbots in HR deployment can help relieve pain points in shared paper-based workflows. Chatbots in financial services can also connect employees to the information they need.

For instance, the HelloYubo chatbot can function as the real buddy for its employees. This chatbot assists the employees with all their queries. From vacation details to tracking reimbursement claims- helloyubo is indeed the friend in need of the employees.

3. Personalized Services

As of 2021, over 95% of Americans have smartphones in their hands. The wherewithal of chatbots in financial services is the massive satisfaction rate among its users. Over 86% of users prefer using chatbots for personalized services in financial institutions.

Retail financial institutions can use chatbots to offer their customers more robust services and stay ahead of the competition. Chatbots in financial services are powerful enough to collect a ton of data from customer interactions, which helps financial institutions get a better picture of their customers.

However, personalization is ubiquitous. Chatbots help you boost your customer retention and acquiring strategy with hyper-personalization.

Leading financial service providers are turning their chatbots into virtual voice assistants that send notifications, give savings tips, make product recommendations, and help customers manage their finances.

For instance, you can customize your chatbot to provide customers with information about your bank branch or ATM location, opening a new account, credit card application procedures, etc

Financial institutions can integrate chatbots into their websites and apps to inform potential customers about financial institutions’’ new products and services.

For example, when a customer purchases a travel ticket, a chatbot can approach them and offer them related products like travel insurance, foreign exchange accounts, etc. Thus, by introducing evocativeness, chatbots use hyper-personalization to increase customer satisfaction.

Chatbots can also be instructed to access bank details and engage customers in conversations in accordance with data protection policies.

More alluring fact is 30% of chatbot conversations are done by non-customers. Therefore, chatbots are proven to be one of the most effective customer acquisition strategies. 

4. Prevent Fraud

Chatbots are quintessential for both financial institutions and their customers. Chatbots in financial services can also monitor and detect warning signals of any type of fraudulent activity. Further, they can send warnings to customers and financial institutions.

Chatbots can use mobile financing apps to remind customers of upcoming billing, account changes, and expected transactions.

They can also integrate consumer data to provide a tailored digital financing experience that meets their customers’ needs, as long as the customer agrees to send such data to the chatbot.

Chatbots are available 24/7 to provide customer service, they can interact in multiple languages, have consistent answers and comply with financial regulations.

The continuous development of machine learning, natural language comprehension, and intent recognition provides chatbots with interactive features that enable them to improve customer service in the financial industry, reduce fraud, act as financial planners and assist in-house staff members.

Conclusion

Chatbots in financial services is a versatile tool financial institutions can use in many areas to solve most imbroglio. Chatbots can effectively solve problems such as customer mistrust, low user engagement, and poor conversion rates.

Chatbots continue to offer direct savings to institutions with a variety of financing use cases.  Chatbots are predicted to save the financial industry $73 billion by 2023. However, digital teams at financial services providers should bear in mind that they must find ways to integrate financial services chatbots into their processes to provide added value to their customers.

Read More: How Chatbot are beneficial in the Retail Industry

About Bhavika Juneja

Sr. Consultant at Yugasa Software Labs - App | Web | IoT | AI
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