Banks are a critical part of the world’s economy, serving businesses and individuals in various important ways. With any industry of this scale, any possible improvements to the way things are done, such as strategies to boost efficiency, can have a huge positive impact on both the banks themselves and their customers.
Many of these improvements are driven by technological advancements. For example, telephone banking revolutionized the way customers access banking services. This was followed by online banking, which then led to mobile banking. All of these make things more convenient for customers and more efficient for banking organizations, and it’s now hard to imagine life without them.
But how else can banks try to leverage technology to improve their services? Chatbots are one innovative way. In this article, we look at how AI chatbots for banking can benefit banks and their customers by looking at some potential use cases.
What are AI chatbots for banking?
Chatbots for banking is largely the same as any other chatbot but applied to a banking context. For example, at their most basic, level they may be used to converse with customers and answer specific questions about banking services.
However, when combined with AI technology, chatbots for banking can perform far more advanced services. AI enhances the functionality of chatbots, enabling them to understand more inputs and offer more useful responses. There is therefore huge potential for banks to utilize AI chatbots in their operations, some examples of which we’ll discuss below.
Possible use cases for AI chatbots for banking
Respond to queries
Answering questions from customers is probably the primary and most obvious use of chatbots in banking. However, simple chatbots can generally only answer simple questions, which can end up limiting their usefulness and frustrating customers.
AI chatbots, on the other hand, can often recognize a greater range of questions and semantic meaning then offer intelligent, targeted responses. In a banking context, this could relate to things like customer-specific questions, such as “Can I extend my credit limit?”.
Automated personalized reminders
As already alluded to, a major benefit of AI-enabled chatbots is their ability to provide a more personalized and targeted service. One useful way for banks to make use of this ability is to issue personalized reminders about various things to individual customers.
For example, reminders could be sent out to notify customers about upcoming bill payments, scheduled transfers, and so on. This helps customers get the information they need faster while removing the need for intervention by bank employees.
Another advanced use of chatbots that is enhanced by the inclusion of AI is to link them with location-based data using GPS technology. There are many applications of this, but the most common would probably be to answer questions like “Where’s the closest ATM?”, “Where’s the nearest branch?”, or “Will I be charged extra for using my card here?” when abroad.
While these touches may seem small, they all add to the accessibility of banking-related support, helping to improve the customer experience.
Among the most common things that banking customers want to know is their balance information. Being able to check account balances via a virtual assistant (otherwise known as an AI chatbot) makes this simpler than ever and can help customers stay on top of their finances.
Balance-related information could also be combined with notifications, alerting people to a low balance, for example.
Payments and transfers
Everyone needs to transfer money into their account or make payments to other accounts, so anything that makes these processes easier is likely to improve the customer experience. AI chatbots can be integrated into payment systems to enable customers to make payments, securely and quickly, streamlining the user experience.
Access transaction history
Understanding your finances is about more than just knowing your balance information. Often, customers need to check their transaction history to see if a payment has gone through, track any deposits, and so on.
AI chatbots can provide the perfect intuitive interface for customers to access transaction history, even simplifying the searching process by bringing up specific parts of the history in response to queries such as “Did I receive any money on Tuesday?”.
Applications for additional services
AI-powered chatbots can also be used to facilitate the uptake of new services by users. For example, a customer could ask about applying for a loan and talk through the options directly with the virtual assistant, even completing phases of the application process through the instant messaging interface.
Flag suspicious and fraudulent activity
Unfortunately, fraud and financial crimes are alarmingly common, and criminals are always trying new ways to steal customers’ hard-earned money. However, reacting quickly can often be the difference between getting money back or never seeing it again, so anything banks can do to keep people notified is likely to help.
AI chatbots can be used to automatically flag suspicious activity to specific users, such as a large payment to an unknown payee. Following this kind of notification, a customer could be given the option to lock their card and escalate the issue to a fraud team for further investigation and action.
Promote new products and services
Another very useful benefit of AI chatbots is their ability to help banks promote new products and services. This could be limited to simple updates about new services, like a new credit card reward, or could involve more targeted promotions, offering additional services related to a specific customer’s activity and interests.
Learn more about chatbots for banking