How banks can help customers break bad money habits

Last week was Groundhog Day and it’s a great time to take a moment and reflect on our money habits. Many people get stuck in a cycle of bad financial decisions, such as not budgeting, overspending, and then having little to no savings for the future. But banks have the power to provide solutions that can help customers break these bad habits and start managing their money more effectively.

Whether customers want to pay off debt, save for retirement, or invest for the future, banks can provide the products and services needed to make it happen. While breaking away from bad habits can be difficult, it doesn't have to be impossible. With innovations in new technology and initiatives for its use, banks are increasingly playing an essential role in helping their customers make better money decisions.

In this blog post, we'll look at how banks are uniquely positioned to help customers break away from bad money habits.

Be a pocket advisor

Artificial intelligence (AI) developments mean that chatbot technology has come a long way since it was first created in 1966. Where the technology used to be rudimentary at best, chatbots have now repeatedly passed the Turing Test and even convinced a Google A.I. engineer of their sentience.

We’ve developed the BOND.AI Chatbot, powered by our Empathy Engine®, which talks directly with customers to determine their financial needs. Customers can easily converse with the Chatbot via their mobile phones, online, and at any time of day. This intimate connection builds trust and encourages the customer to share their problems with the bank—making it easier for the bank to help them.

Using the Chatbot to develop and strengthen customer relationships means the bank can build a holistic picture of each customer and tailor its offerings as a result. Rather than rely on broad customer segmentation, banks can appeal to individuals and personalize their products and services.

With more information available, banks can move to predict customer behavior. This is an idea for banks that want to help customers break bad habits, as they can use their data for forecasting and seek to stop any bad decisions before they’re made.

Change perceptions

Unfortunately, many customers feel overwhelmed and scared of engaging with banks regarding financial issues. Instead of being seen as the problem—an intimidating place that takes money and charges high-interest rates—banks should be part of the solution.

Banks can provide guidance and resources for customers who need help knowing where to start. From budgeting classes and debt management plans to credit counseling and debt consolidation loans, banks can provide the educational support and services customers need to break bad money habits.

Nevertheless, while banks can provide resources and assistance to help customers, they often find it hard to reach out and reach more people. The real trick to scaling up is connecting with customers as individuals and knowing the best time to do so. That's where AI chatbots can come in handy. By providing a digital assistant to answer questions and provide guidance, banks can create a more intimate and private environment where people feel safe sharing their problems and seeking help.

Chatbots are a new way to interact with banks. They allow customers to get information and answer questions without having to wait on hold or interact with a human customer service representative. Using AI enables the bank to provide a high-quality level of attentive service at scale to its customers, ensuring a better experience for staff and customers alike.

By improving their customers’ experiences, banks will demonstrate themselves as a valuable resource in people’s lives that can be relied on for advice and in hard times. When it comes to breaking bad habits, trusted banks, personalized advice, and a sense of security are the ingredients customers need.