In January, OpenAI, an artificial intelligence research company launched ChatGPT, a dynamic chatbot that can answer complex questions and provide information from cookie recipes to code for basic programs.
People are taking notice, too. It’s had more than 100 million users since launch in January and banking industry analysts have pointed to the technology as the next step in the customer experience.
So, what does this have to do with banks? Conversational AI enhances the user experience through improved customer service, but banks can also gain valuable insights and predictive analytics through conversational AI, too. Let’s learn about the benefits of conversational banking.
The Power of Conversational AI in Banking
Conversational AI is the technology that allows human-like interactions between computers and humans. It can recognize speech and text, understand the intention and different languages, and respond almost as a human would. And the truth lies in the numbers. This year about 90% of customer interactions with banks are expected to be automated using chatbots. Furthermore, AI will redefine 50% of user experiences using natural language, computer vision, augmented reality, and virtual reality by 2024.
Though it’s not all about regular rules-driven chatbots but bots that leverage natural language processing (NLP), automatic speech recognition (ASR), advanced dialog management, and machine learning (ML) to have actual conversations. They can also learn from each interaction and improve with time, just like a human does. Sometimes, even better.
Why should you choose a bank with conversational AI customer service?
1. Save time
Forget about being on the phone for hours to get help, standing in line, or searching for the answer you need on intricate web pages. According to Jupiter Research, consumers and businesses will save over 2.5 billion customer service hours by 2023. The good thing about robots is that they can talk to several people at the same time, and they don’t need to rest. Can you imagine being able to ask about your chances of getting loan rates, or asking pre-approval for a consumer-lending option after business hours and receiving a personalized answer right away? This is a real possibility with conversational AI.
2. Get financial recommendations (for free)
Finances are complex, and we can all use some help to deal with them. What if tech helped you decide what investment options are best for you, according to your income and spending habits? It could also help you with your taxes or figure out a saving plan for your retirement or your kid’s college. The best part: you won’t be paying fees to any advisor.
Deloitte’s Voice Commerce 2030 study concludes that voice commerce will lead to a greater spread of online sales, as voice recognition achieves a new level of convenience for customers.
3. Get help with difficult processes
Applying for a loan or a mortgage can be very challenging and stressful. Artificial Intelligence is your best partner in this case: it can guide you through the process, help you save up for a down payment and even find the best time to buy or refinance. What if you could have real-time access to relevant financial documents, real estate information in your area, and current mortgage or rent details right in one place? Sounds too good to be true? It is a tangible possibility nowadays.
4. Be smarter with your money
Do you struggle to save money? Is it sometimes difficult for you to make it until your next payday? The good news is, you’re not alone – 70% of Americans are concerned by their financial situation, and, the vast majority of all US Americans is interested in achieving greater financial wellness. That’s why the financial industry is diligently working on solutions.
Conversational AI can help you understand how you spend your money and identify saving opportunities to improve your overall financial health. Let’s say you are looking for a slightly larger investment (a new computer) days before your usual payday. A chatbot dedicated to improving your shopping experience, while considering your financial wellness, might open you an opportunity to buy the computer right now, when you need it, and pay it later (BNPL), when you’ve saved the necessary sum.
5. Avoid missing bill payments
Internet, water, electricity, gas, phone, rent… We have so many bills, and paying them is hard enough to also must remember several due dates. A conversational bot could remind you of making those payments, or even better, pay them for you (with your money—it is not THAT good).
6. Stay safe
Cyberattacks and fraud are becoming more complex every day. The United States suffered 1,473 cyberattacks over the last year – and 92 of all ATMs are vulnerable to an attack. Financial hacking is pervasive and the most attacked IT area of all. You can get scammed online or through an apparently innocent phone call. If they catch you off guard, this can really damage your finances. A conversational bot can be alert and notify you and your bank about any threat, keeping the money in your pocket and far away from cyber pirates.
7. Enjoy transparency
A conversational bot is not looking to gain a commission and won’t try to sell you that service you don’t need in order to get a promotion. It will give you advice and assistance strictly based on your financial and personal information—nothing more, nothing less.
8. Skip mistakes
Making mistakes is human. We all have bad days. We get tired. We get distracted. Luckily, robots are not human, and therefore, they can give us reliable information, no matter the date or the time.
As you can see, conversational AI is here to make your banking experience smoother and more efficient, leaving you with more time (and money) to enjoy the things you love. Learn more about how Artificial Intelligence can help you achieve your goals with BOND.AI.