Wednesday, October 27Digital Marketing Journals

10 amazing ways chatbots can improve customer engagement in banking | by Engati | Jun, 2021


The best service a bank can offer to its customers is one that’s meaningful, engaging, and personalized. Chatbots in banking have huge potential for customer engagement. It gives customers 24/7 access to support and banks can make great use of AI and improve customer engagement to enhance the experience and improve retention.

In fact, you can easily measure the ROI of chatbots by conducting a survey, collecting feedback, and getting a sense of how happy and satisfied your customers are. All in all, we can say that customer engagement is crucial for every business. It is crucial in every domain that you visit and chatbot in banking is not far behind.

These are promising numbers and show great credibility in AI. It clearly illustrates how chatbots can improve customer experience in the banking sector.

There is, however, one condition that even tech experts recommend. If a bank wants to incorporate a chatbot, then they must try it out internally to understand how reliable and compatible the technology is with their services before deploying it.

After all, the banking industry doesn’t need a half-baked self-help customer software. It will only lead to unresolved customer issues that will come back to a customer support executive. So what would be the point of having a chatbot, right?

Good that we are in an exciting time, witnessing all kinds of technological advancements. As a result, banks are also leveraging this fact and trying to integrate with chatbots to increase efficiency.

Source: PwC

  • Inconsistency: Different customer service agents give different answers (41%)
  • Customer service agents don’t know the answer (34%)
  • Can’t find the answer on the website (31%)
  • An exponential increase in the number of new applications

Many of them can be resolved with the right implementation and will bring better customer satisfaction. Hence, better business results with lower operational costs and better customer retention.‍

Pain-points in the Banking Industry

1. Pushes Information

A simple, “Hey, your salary is in. Go have fun!” sounds way more pleasant, encouraging, and personal than, “Your account XXXX has been credited.” What more reasons do we need now?‍

1. How Conversational AI can Automate Customer Service

2. Automated vs Live Chats: What will the Future of Customer Service Look Like?

3. Chatbots As Medical Assistants In COVID-19 Pandemic

4. Chatbot Vs. Intelligent Virtual Assistant — What’s the difference & Why Care?

2. Answers Queries

  • Sell plans
  • Solve customer queries (and eventually use it as leverage to, guess what, sell more plans)

Do selling plans generate revenue for the bank? Yes. Does solving customer queries generate revenue for the bank? No.

Banking chatbots can take over the mundane, non-revenue-generating tasks and support multiple customers at the same time. Moreover, every time there is a change, chatbots need to be told only once, unlike training executives repeatedly to ensure that they deliver the right message.

Eg: Swedbank’s Nina takes care of service calls while the employees do the sales calls to add more value to the company.‍

3. Saves Time

A new visitor must be saved the hassle of going through the bank’s entire website to find 1 piece of information. An executive doesn’t have to entertain queries when a chatbot can do it uninterruptedly without getting bored, seeking motivation, taking breaks, or demanding an appraisal.‍

4. Builds Economy

  • BOA’s chatbot, Erica, used by 25 million users, was assisting its customers to invest and save taxes
  • Wells Fargo’s chatbot was guiding its customers to the nearest ATM
  • JPMorgan’s COIN was evaluating complex legal documents for its customers with chatbot analytics
  • Barclays Africa’s chatbot was extending its services to Twitter and Facebook Messenger for better connectivity
  • AmEx’s chatbot was checking up on its customer’s account balance, upcoming bills, purchase history, spending habits, and financial reminders

The bottom line is, chatbots automate tasks, whether simple or complex. What’s important is that enterprises develop bots using a platform that is capable of developing both. With a truly enterprise-grade chatbots development platform, the possibilities of what a bot can do are endless. Such platforms could turn out to be the real holy grail of customer service excellence for both customers and bankers. Global banks are embracing AI technology and are excited to make it a part of their digital strategy in the long run.

Here we discuss 10 ways in which chatbots can improve customer engagement in banking.

10 ways chatbots can improve customer engagement in banking‍

1. Personal banking

Banking Chatbots can also provide useful information that is related to the latest bank schemes, KYC, and resolve customer queries. The best part is that customers don’t have to wait for someone to attend to their queries. Chatbots are already trained to manage these queries and provide relevant support.‍

2. Automated customer service

The bots also aid the banks to address any customer complaints by analyzing the grievances of the customers and providing important insights. They also help the banks improve their services. It is also essential in improving product offerings.‍

3. Clear customer feedback

4. Personalized marketing experience

5. Enhanced employee productivity

Some of these repetitive and monotonous activities include accessing personal details, maintaining a record of payroll details, applying for leaves, updating the contact information, performing a detailed review of time-sheets, and other tasks. Once chatbots automate these tasks, banking professionals have more time to concentrate on important deals. They will not get worked out and this way, their productivity will increase. As a result, they will be able to better serve customers and improve their experience.‍

6. Quick information about customer finances and advice

Banking bots can also advise customers on how to manage and invest their money. Professionals train them enough so that they are updated with the latest news, trends, and information. Chatbots can demystify complex banking and financial terminologies and help customers make smart financial decisions.‍

7. Easy KYC initiation

8. Chatbots for assisting fraud detection

9. Chatbots in banking increases and improves customer sessions

10. Increases brand loyalty

AI chatbots drive innovation in a controlled manner. They build brand loyalty by engaging with customers on the channels they prefer slowly finding a place in the customer’s daily life. It’s comparable to how modern customers interact with friends, family, and colleagues. Banking chatbots can also create personalized brand experiences that increase acquisition, conversion, retention, and loyalty.‍

Features to implement for banking chatbot‍

  • Transaction History
  • Locate nearest ATMs and branch based on the user’s location or zip code entry
  • Transfer Funds
  • Customer feedback and measurements
  • Switch to categorized hotlines for exceptions
  • FAQ — Customer Service Queries across Categories

These are just some of the basic ones that we currently target. There are many more that can be implemented to provide for an always-available intelligent interface for a customer to transact on to fulfill their banking needs. AI in banking can be extremely beneficial to reduce service volumes to more automated channels.‍

Consider security

Do more with chatbots

This banking bot infographic designed by Engati will give you a quick view of how you can not only save your time but also provide you a better customer experience!‍

Chatbots in banking use cases

1. Qatar Insurance Company

Check out their video testimonial‍

2. Bank of America

3. JPMorgan Chase

4. Wells Fargo

5American Express

Banks put a great amount of value on customer support because it’s a huge driver of customer satisfaction. They need to rank ahead by providing great products and services, brand recognition, trust, cost, and innovation.

Additionally, chatbots for the banking industry are doing great in ensuring cost-saving for banks. It is estimated that problem resolution over the phone with live agents comes out to be anywhere between $5 and $35 per call. On the other hand, live web chat costs around $3 per interaction. Pretty cheap and efficient, isn’t it?

Chatbots that use human-to-machine interactions cost less than $0.50 per interaction and often deliver answers much faster than other engagement channels. Beyond being a less expensive engagement channel, chatbots also reduce — at a bare minimum of 10 percent — the number of support calls and chats a bank receives.

Therefore, there’s great promise for banking chatbots. In fact, banking officials want to collaborate more with AI specialists to ensure great service for their customers. After all, it is about faith and trust when it comes to your money. And banks want to improve how you manage and invest your money

Build your own contextual chatbot now!

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