Conversational AI in banking is a digital banking technology solution to recreate a level of personalization of human interaction on digital platforms. This can take various forms, such as voice and visual communication, text messages, communication through websites, mobile applications, and more.
By allowing for repetitive queries to be automated, conversational AI enables customers to engage with banks via text-based chatbots or through voice-activated conversations. Also, on average, approximately 76% of Americans used their mobile banking applications for simple banking activities in 2021. Therefore, conversational AI can be quite beneficial for the banking industry. Banks such as Barclays, Capital One, Bank of America and more have been early adopters of conversational AI-powered chatbots in their operations.
Significance of Conversational AI in Banking
Customers utilize various mediums of digital communication for their banking requirements, and therefore, it is vital that organizations provide them with the needed services to make their activities more efficient. Here’s how conversational AI can benefit the banking sector:
Reduced Operational Cost
By implementing conversational AI in banking services to answer repetitive queries or more, organizations can significantly cut operational costs. Cost and energy spent on training humans to provide customer care services will be reduced as the AI will be able to answer the queries for them.
Improved Customer Satisfaction
By providing customers with more personalized service and user experience, conversational AI in banking technology solutions will help to enhance the customer experience, thereby increasing loyalty and customer satisfaction.
Reduced Data Leak Risks
One major benefit of conversational AI in banking solutions is that it can help to reduce the volume of data leak risks. Through social engineering attacks, human customer care representatives can fall prey to these attacks or customers may be tricked into putting their credentials and can easily get their information extracted. If conversational AI is implemented, then there will be no way for a social engineering attack to take place, as a bot cannot be tricked or manipulated to give out personal information.
By integrating conversational AI in banking solutions, organizations will witness a radical increase in client loyalty and satisfaction. The cost of operations of training human customer care representatives will also decrease and provide banks with more efficiency as any human error will be eliminated.
