Chatbots in Banking: How Can They Improve Customer Experience?

Banking can be time-consuming for your customers, especially regarding actions like checking account management, setting up bill payments, and more. Luckily, chatbots are here to save the day (and your sanity). 

Some of the world’s leading banks have already integrated live chats into their websites and using WhatsApp chatbots to engage with their customers. It’s only a matter of time before others follow suit.

If you are yet not aware of the prominent usage of chatbots in banking that leads to a better customer service experience, this article is for you! So without any further adieu, let’s begin.

Top 5 Benefits of Banking Chatbots

1. Easy to Use FAQs

An intelligent way to eliminate excess calls and emails from customers is to create an FAQ section on your website. It would help if you also have an online chat option for those who prefer not to call or email (or want a faster response time). 

With the right resources, you can automate your AI-powered for up to 80% of the queries. Machine Learning algorithms are built in a way that AI bots train themselves every time a customer asks a new question. The self-learning process improves the customer service experience too.

Chatbots in Banking

If a customer inquires about his account balance, an AI-powered chatbot can understand that and directly respond. It may transfer your customer to a human operator if it has any doubts about your query. 

The banking chatbots keep you from paying for expensive human resources by solving most of the generic customer queries. As per a survey by Gartner, online customer service (through banking chatbots) costs 24% less than in-person customer service. 

Read Also: Top 10 Amazing Chatbot Benefits for Higher Business Growth in 2022

2. Quick, Relevant Information & Increased Conversion

Banks and other financial institutions aim for increased conversion rates and an improved customer experience. 

Chatbot Benefits for Business

Thanks to the advanced AI algorithms, chatbots provide quick and relevant answers to your customers. The better a banking chatbot can answer, the more customers will be satisfied with their experience.

The following are some of my favorite examples of chatbots in banking: 

  • MoneySuperMarket’s MoneyBot gives customers access to all their account information, alongside mortgage quotes and car insurance advice—all within their Facebook Messenger
  • Lloyds Banking Group has its bot called Luvo—available on Facebook Messenger
  • Google Assistant and Telegram help users track their money by saving it every time users speak to it

3. Instant Notifications

Customers sending texts to bank agents through a chat window to see if they are available can lead to long hold times. And when they do get through, their questions may be misunderstood and confusing. 

Chatbots in Banking

But new technologies, like chatbots in banking, elevate their experience and help them complete their task faster than ever before. No doubt allowing customers to interact with a bot instead of waiting on hold or sending text messages back and forth expedites the customer service process.

Here’s how these customer-friendly tools work: 

  • A customer uses an app or website to communicate with a programmed bot to understand specific commands
  • The bot answers simple queries and sends relevant information in seconds without having to route calls through an agent
  • If anything more complicated needs human attention, the bot sends a message that alerts bankers about the customer’s query, so they don’t have to wait again

4. Easy Data & Documents Collection and Verification

Good banking services begin with trust, and there’s no faster way to lose that trust than not being able to verify someone’s identity. Verification typically involves a lot of paperwork or copies of documents that take hours to collect and can delay service by days or weeks while banks wait for paperwork to arrive.  

With chatbot technology, however, it’s possible to get all necessary information in minutes—or even seconds—with just a few clicks. 

The resilient verification process is beneficial when verifying customers who have recently moved or changed jobs. Instead of wasting time on hold with customer support, they can ask their bank to send them an email containing all relevant documents attached. The customer then reviews these documents through their mobile device, verifies their authenticity using facial recognition software, and completes a simple form confirming their identity. 

With this feature, customers can enjoy your bank’s great products and services immediately. They love being able to do business quickly without having to waste precious time waiting around on hold or going out of their way to visit a branch. 

Your customers also appreciate your attention to security since every piece of data they provide is encrypted as soon as it leaves their phone (and stays encrypted until after it reaches yours). 

Chatbot development services

5. 24×7 Assistance

One of the most significant advantages of chatbots in banking is 24×7 assistance. Whether at work in between meetings or shopping on the weekend, your customer’s banking questions can be answered. Irrespective of time they will have access to a support team to assist them with any query.

Chatbot in Banking

As new features are added to help improve customer experience, they’ll automatically become available. Suppose a problem emerges for which there isn’t an existing solution. In that case, a solution could be created in real-time and immediately made available through customer service representatives. If the same question is put across again, chatbots will handle that.

How to Integrate Banking Chatbox with Third-Party Systems

There are two main ways to integrate a banking chatbot into your customer service system:

  • webhooks 
  • APIs

Webhooks are triggered by events inside your customer service platform, whereas APIs allow you to build bot capabilities without writing any code. For example, when a new person signs up for your bank’s mobile app, you can send them an SMS message welcoming them. 

Banking Chatbox- Chatbots in Banking

Alternatively, if you want to add payments functionality into your chatbot so it could help customers make purchases and check their balances, then using an API would suit your needs better.

The best way to start building a chatbot is to pick one function and then expand. 

Don’t try and do everything at once; instead, focus on one specific task such as answering simple questions or completing basic transactions like checking account balances or paying bills. 

It’s important to remember that a chatbot will only be as good as your customer service software, so make sure you invest in building a great platform before investing in a chatbot. You can contact chatbot services in India to develop a cost-effective and efficient banking chatbot.

The Most Common Ways Users Interact With Bots 

Most chatbot interactions are simple requests for information that a browser can find and quickly provide, such as info about an account or currency exchange rates. 

Although, users can also initiate other, more complex tasks with bots, like requesting a card block or unblocking and transferring money between accounts on behalf of another person.  

Another way people interact with chatbots is by asking questions that aren’t easily answered by a database—questions like What does your bank have to offer? Or What is your company culture like? These questions usually lead to conversations between humans and bots.

Going live

It might take some time for your chatbot to be approved by app stores and banks. When you’re ready to launch, schedule a time and date with marketing so that you can issue an alert about your new feature. 

Planning for these announcements helps ensure not missing anything and allows for advance promotions. Once you’ve gone live, monitor your website and social media channels to see how customers respond. See if the chatbot adds value and if your customers have any suggestions. 

These insights are invaluable as you continue improving your product. After all, we learn more from our mistakes than our successes! 

Read Also: The Top 7 Healthcare Chatbot Use Cases You Need to Know

In a Nutshell

All in all, most customers today are millennials who prefer a more tech-savvy banking experience. And that’s what chatbots in banking do – provide personalized, efficient assistance to customers, saving them time and aiding them in reaching their financial goals. 

Across industries, many are turning to chatbots, particularly in banking. Since the customer base is more important than ever, banks remain under pressure to provide good customer service. It is time for banks to explore innovative ways to retain their customers.

PixelCrayon has worked with many banks and financial institutions to smoothen the working process. If you’d like to know what you can automate for your business and how you can ensure a delightful customer experience, you can contact our experts.

Frequently Asked Questions

Q1. What kind of questions can customers ask my chatbot? 

They can ask your chatbot for anything they’d normally ask a customer service representative. For example, if they want information about their current account balance, they can type, “how much money do I have in my account into your banking app” and receive an instant response from your bot.

Q2. Are chatbots safe for bank account holders? 

Yes—chatbots used by reputable financial institutions are encrypted and secure. Suppose someone else manages to access a conversation between an account holder and your bot. In that case, they won’t be able to see anything because all communications are protected by end-to-end encryption.

Q3. Are banking chatbots always free for customers?

Banks and other financial institutions mostly don’t charge their customers for using their chatbots; however, some actions such as transferring money between accounts via SMS may be chargeable. 

Q4. Do my bank’s customers need to download any software to use my chatbot?

No! As long as they have internet access, they can chat with your bank’s chatbot from anywhere. They’ll only need to download your bank’s messaging app.

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