6 min read

Harness the Power of Conversational AI in Financial Services

by | Apr 20, 2023

Conversation banking with ai

Artificial Intelligence is sparking enthusiasm worldwide, prompting several banks and financial institutions to implement AI to improve their business outcomes. Prevailing trends suggest that conversational ai in financial services has immense potential to revolutionize how banks interact and engage with customers. Besides, it’s becoming apparent that banks agile enough to adopt this cutting-edge technology get a distinctive advantage over their competition.  

Machine learning(ML) and Natural Language Processing(NLP) are making a significant impact by modernizing customer interactions. In fact, AI is slated to enable  90% of customer interactions in a few years. With customer engagement being a crucial value driver, Conversational AI in Finance sector has a critical role in reinventing banking experiences. 

How Does AI Help in Conversational Banking?

Chatbots can help automate repetitive tasks, provide prompt responses to frequently asked questions, and simplify data collection. Conversational AI in banking goes further and makes the interactions feel more personal. Several banks worldwide have already integrated chatbots into their communication strategy. However, the information exchange is often not conversational, resulting in a lackluster customer experience.  

Conversation AI chatbots rely on Machine learning and NLP to ensure that responses are relevant and customer conversations feel natural. The feedback loop powered by machine learning algorithms helps AI chatbots improve the accuracy of their responses over time. Thus, AI and ML empower banks to provide top-notch customer service round-the-clock.  

Here are a few conversational AI banking use cases: 

  • Quick resolution of simple queries
  • Agent handoff for complex queries
  • Managing payments
  • Sending regular notifications
  • Sending Payment reminders
  • Fraud detection 
  • Risk management
  • Feedback collection
  • Document sharing
  • Customized recommendations 

Benefits of Conversational AI in Financial Services

The financial sector is excited about reports of positive ROI on investments in conversational technologies. Here are a few benefits of deploying conversational AI in Finance with chatbots: 

More Meaningful Interactions

Irrelevant marketing messages can negatively impact a brand’s image and credibility, which are critical for banks. The last thing customers want from a bank is to be bombarded with random messages.  

Conversational AI chatbots are smart enough to have contextual exchanges with customers. For example, chatbots can collect data through a series of questions and offer recommendations based on that information.  

For example, a user’s income satisfies the eligibility requirements and expresses interest in home loans. The bot can also share investment options and financial advisory based on the customer profile and past conversations.

Better Customer Experience

A simple trick to keep customers happy is instantly addressing their queries and providing accurate answers. Customers may often have questions they want immediate answers to while performing banking operations. But they may hesitate to reach out to banks due to long call wait times and queues at the physical bank. As a result, customers may only partially explore your products and services. Customers may also consider switching to a different bank where help is more readily available. 

Conversational AI in banking help automate the process of answering repetitive queries, ensuring that customers get prompt help. In addition, they can provide quick resolution and efficient support by sharing demo videos and links to forms. By engaging customers meaningfully and offering effective assistance, banks can deliver memorable customer experiences.

Personalized Services 

Emails blasts and mass marketing messages are no longer effective and typically have poor conversion rates. On the other hand, sending customized recommendations based on customer behavior patterns drives engagement. 

Although addressing a customer by name establishes familiarity, it is only the first step to personalization. Conversational chatbots can use insights from customer data to have more tailored communication with customers. For example, banks can assess a customer’s risk tolerance and send customized investment options accordingly.  

24/7 Availability

Your customers will no longer have to wait to reach you. They can use their computers or mobile devices to connect with you. For simple queries, answers may be a few clicks away. For complex queries, chatbots reassure customers that they will receive help through messages or callbacks during banking hours. 

Round-the-clock availability plays a pivotal role in customer engagement. Without chatbots, banks may need to hire a huge customer service team to be available 24/7. Since chatbots can engage thousands of customers simultaneously, they are a huge asset for businesses looking for scalable customer service.   

Delight Customers with Kaleyra’s Chatbots 

Upgrade your customer service by providing intuitive responses that feel personal.  Unlock new possibilities for your banks with Kaleyra’s Conversational chatbots. Leverage conversational AI in financial services and banking and deliver outstanding experiences with Kaleyra’s AI-based bots.

Kalaivani Narayanan

Kalaivani Narayanan

Content Specialist

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