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Customer engagement chatbot in banking

Aishwarya Sinha Ray
|
10
min read
Customer engagement chatbot in banking

Customer engagement is one of the most prominent and useful use-cases of a chatbot. It gives customers 24/7 access to support. It can easily and competently answer simple, repetitive questions.

In fact, you can easily measure the ROI of chatbots by conducting a survey, collecting feedback and getting a sense of how happy and satisfied your customers are. All in all, we can say that customer engagement is important and crucial for every business. It is crucial in every domain that you visit and chatbot in banking is not far behind.

Customer engagement chatbot in banking

Chatbot in banking has a huge potential in customer engagement. Banks can make great use of AI and improve customer engagement to enhance experience and improve retention.

These are promising numbers and show great credibility in AI. It clearly illustrates how chatbots can improve customer experience in the banking sector. There is, however, one condition that even tech experts recommend. If a bank wants to integrate with a chatbot then it must first try it out internally. This will help them measure how reliable and compatible the technology is with their services. There must not be too much pressure only because your competitors are releasing a chatbot. It only makes sense for a renowned bank to take its time and release a chatbot that is fully trained and equipped.

Chatbot in banking

Once banks make the decision then comes the time to decide how reliable it will be for the customers. Additionally, banks have to measure the ROI of building and managing a fully-functional chatbot. While there are numerous companies suggesting that chatbots have helped them save substantial amount of money, in the end what matters is how well the bot is able to manage and engage customers. The key here is not only to save money but to provide a seamless experience.

After all, the banking industry doesn't need a half-baked self-help customer software. It will only lead to unresolved customer issues that will come back to a customer support executive. So what would be the point of having a chatbot, right?

Good that we are in an exciting time, witnessing all kinds of technological advancements. As a result, banks are also leveraging this fact and trying to integrate with chatbots to increase efficiency.

Well designed chatbot for banking
Source: PwC

10 Ways how chatbot in banking can improve customer engagement

Chatbot in banking is emerging as the preferred customer support platform. It is useful for financial service providers because they facilitate a 2-way communication with machines using natural language commands. As per the latest data, close to 70% of customers prefer contextual conversations with chatbots. Since they can find answers to their questions much faster and the interactions are much more seamless, they would always pick bots over agents.

Here we discuss 10 ways in which chatbots can improve customer engagement in banking.

1. Personal banking

Delay in services and lack of personalisation are 2 of the biggest problems that most of the customers face today from the bank. However, times and things have changed now. Banks are opting for chatbots to create a personalized banking experience. Banking bots are reducing the waiting time and other related paperwork. As a result, customers get faster and personalized services that save a great amount of time for both the parties. The customers no longer have to visit the bank every time they need an account of their expenditure. Now chatbots can effectively provide the required account statements to the customers.

Chatbots can also provide useful information that is related to the latest bank schemes, KYC, and resolve customer queries. The best part is that customers don't have to wait for someone to attend to their queries. Chatbots are already trained to manage these queries and provide relevant support.

2. Automated customer service

Chatbots are proving to be extremely helpful in providing seamless customer service. In fact, chatbots are also helpful in analysing data, detecting fraud, and capturing data. Automation enables the chatbot to inform the user about every transaction to prevent any form of miscommunication or mismanagement. This helps in preventing any kind of fraud by identifying possible discrepancies right from the initial stage. Users are always on top of their account activities because they receive notifications simultaneously. The bots can provide assistance to the customers at any time as they are trained to grasp their queries and provide the best possible solution, simultaneously making them feel like they are interacting with a human.

The bots also aid the banks to address any customer complaints by analyzing the grievances of the customers and providing important insights. They also help the banks improve their services. It is also essential in improving product offerings.

3. Clear customer feedback

Customer feedback is one of the most important elements of any banking service. Intranet-based chatbots help banks get a more specific customer feedback. It can help them improve their services. The staff can gain information about the shortcomings and the management can offer helpful solutions. This further improves the experience and increases efficiency. This indicates that the situation is favourable for employees, management and customers as they all are at a much better position at work.

4. Personalized marketing experience

Even though banks provide a plethora of services to their customers, not every service can have the correct taker for it. Thus in order to provide the customers with personalized services, banks can accomplish this particular goal by deploying chatbots. As a matter of fact, the delivery of personalized services can improve the overall rates of conversion by 25%.

5. Enhanced employee productivity

Chatbots have multiple benefits. These benefits don't just revolve around customer experience but they mean to improve employee experience too. Chatbots help save a lot of employee time, which they save from automated responses and assistance. With this, employees don't get worn out by repetitive, monotonous tasks. As a result, their efficiency increases and they become more productive.

Some of these repetitive and monotonous activities include accessing of personal details, maintaining a record of payroll details, applying for leaves, updating the contact information, performing a detailed review of time-sheets and other tasks. Once chatbots automate these tasks, banking professionals have more time to concentrate on important deals. They will not get worked out and this way, their productivity will increase. As a result, they will be able to better serve the customers and improve their experience.

6. Quick information about customer finances

From end customers of the bank to CXOs, customers of different banks come from a diverse range. Chatbots are proficient at providing all sorts of financial information and are also capable of keeping this information safe and secure. In fact, chatbots provide this information with much contextual context and insights for greater knowledge. With this, we now embrace conversational banking and view chatbots as new-age banking executives.

7. Financial advice with chatbots

Chatbots can give you advice on how you can manage and invest your money. Professionals train them enough so that they are updated with the latest news, trends and information. Chatbots can demystify complex banking and financial terminologies and help customers make smart financial decisions.

8. Easy KYC initiation

Customers no longer have to fill up the same kind of form every time they visit a bank. Chatbots will enable simple and easy transactions with just a few clicks on finger impressions to ensure that these transactions are safe.

9. Chatbots for assisting fraud detection

Whenever a customer signs up with a bank, they trust the bank with their hard earned money. So, banks must ensure extra care to maintain this trust. Chatbots act as helping hands in sending you push notifications proactively. These automated programmed notifications keep you updated about transactions done on your account in real-time. If it’s a fraud, you can also reply to the messages with pre-customized instructions to stop the transactions.

10. Chatbot in banking to increase and improve customer sessions

You may also get unsolicited marketing messages from chatbots. If you find it irritating, you can simply shut it out with ease without the fear of hurting anyone. A chatbot is not a human that carries a grievance or grouse. The good part is, the chatbot can do a good analysis of your customer sessions, read your likes and preferences and proffer the right products and services. Chatbots can be useful to spread the good word of mouth to the customers.

The bottom line is, chatbots automate tasks, whether simple or complex. What’s important is that enterprises develop bots using a platform that is capable of developing both. With a truly enterprise-grade chatbots development platform, the possibilities of what a bot can do are endless. Such platforms could turn out to be the real holy grail of customer service excellence for both customers and bankers. Global banks are embracing AI technology and are excited to make it a part of their digital strategy in the long run.

Bank of America

Erica, derived from the word America was introduced by the Bank of America. It is used to give information about the account balance, send various notifications to the customers, provide updates, share credit reports, suggestions, pay bills, and help customers in completing their transactions.

JPMorgan Chase

JPMorgan Chase uses chatbots to improve their back-office tasks. The chatbot can perform better than a human law executive for analysing long-format legal documents and provide assistance.

Wells Fargo

Wells Fargo uses Facebook messenger as well as AI chatbots to respond to user queries. It provides information like which is the nearest bank ATM and their account balance.

American Express

American Express focuses on the merchant relationship by making them aware of the benefits of a credit card, contextual recommendations, and notifications regarding the sales. In order to avail the benefits, it is mandatory for customers to connect to AmEx messenger chatbot.

Qatar Insurance Company

Another major BFSI company, Qatar Insurance Company (QIC), uses an Engati chatbot to increase customer engagement, drive sales and create amazing customer experiences.

Conclusion

The revolution with chatbot in banking has been incredibly phenomenal. Banking chatbots are not just providing excellent customer service but are improving the way customers interact with banks. In fact, chatbots are revolutionising the way banks provide their services to customers.

Banks put a great amount of value on customer support because it’s a huge driver of customer satisfaction. It is important for them to rank ahead by providing great products and services, brand recognition, trust, cost and innovation.

Additionally chatbots are doing great in ensuring cost-saving for banks. It is estimated that problem resolution over the phone with live agents comes out to be anywhere between $5 and $35 per call. On the other hand, a live web chat costs around $3 per interaction. Pretty cheap and efficient, isn't it?

Chatbots that use human-to-machine interactions cost less than $0.50 per interaction and often deliver answers much faster than other engagement channels. Beyond being a less expensive engagement channel, chatbots also reduce — at a bare minimum of 10 percent — the number of support calls and chats a bank receives.

Therefore, there's great promise for chatbot in banking. In fact, banking officials want to collaborate more with AI specialists to ensure great service for their customers. After all, it is about faith and trust when it comes to your money. And banks want to improve the way in which you manage and invest your money.

Build your own contextual chatbot now!

Blog Cover Photo by Artem Beliaikin on Unsplash

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