Back to Blogs

Conversational AI: Revolutionizing the banking Industry

November 21. 2022

The AIOps adoption in the banking industry has transformed and disrupted the conservative banking industry. The banking industry is not the same as it was in the 90s. Banking customers aren’t bound to visit physical branches to avail of financial services. In 2022, one can make a transaction with a simple tap on their smartphone. All these banking facilities weren’t available in the 90s. The recent trend in the banking industry is automation. IT automation with AI (Artificial Intelligence) is not only limited to research organizations. Banks are making full use of conversational AI to boost productivity, revenue, and employee satisfaction. Read on to understand how conversational AI is transforming the banking industry.

Understanding conversational AI in banking

Before we get to the use cases of conversational AI in banking, one should know its definition. Conversational AI comprises technologies that can interact with human beings. For example, chatbots and virtual agents fall under the category of conversational AI. Conversational AI is capable of recognizing human speech and text with NLP (Natural Language Processing) algorithms. Conversational AI solutions can also translate speech and text across different human languages. With the help of ML/AI algorithms, conversational AI can imitate human speech.

 

Like any other AI solution, conversational AI solutions also learn with time. For example, a chatbot will learn more things after each interaction with the customer. Like the predictive analytics model or any other AI solution, conversational AI develops with reinforced learning. Most people believe that chatbots are the only thing in conversational AI. Well, chatbots are only one aspect of conversational AI. Voice agents, voice assistants, and many other conversational AI solutions are being developed. Also, conversational AI is a new-age technology that is getting broad after each day.

Pros of conversational AI in the banking sector

As banks are choosing digital transformation services and solutions, conversational AI is a must. Not to forget, the banking landscape has become more competitive in the past few years. Banks cannot miss out on technology that can augment productivity in such a state. Some major pros of conversational AI in the banking sector are as follows:

Automation

Since banks are now offering Fintech services, they have dedicated IT infrastructures. While IT monitoring and security are already automated with AIOps solutions, it is now time for customer interactions. With conversational AI, customer interactions are being automated in the banking industry. With the help of conversational AI solutions, banks can take less time to process customer queries. Traditionally, customers had to spend several hours waiting for their issues to be resolved. With conversational AI, customers can themselves solve most issues. As customers learn self-care with conversation AI touch points, banks will require less workforce. Banks can dedicate their employees to core responsibilities and in boosting overall service availability.

Personalization

As you know, AI algorithms learn with time and remember everything. Conversational AI interacts with customers and learns about the user’s journey. By collecting relevant data, AI-led solution generates insights into the customer’s journey. With the help of historical data and insights, conversational AI solutions generate personalized responses. A customer support individual might not use different word choices, tonality, and delivery for each customer. However, a conversational AI solution can personalize word choice and tonality for each customer. All this can be done without utilizing the working hours of in-house employees. With increased personalization, banks can boost customer satisfaction rates.

Employee satisfaction

A bank does not want its employees to crumble under pressure. Many times, bank employees spend hours resolving customer queries. Due to the rise of digital transformation services and solutions, customers can now easily contact banks. Customers might be dropping emails, sending reviews, and calling on the helpline number. Sometimes, it might be hard for bank employees to deal with incoming customer queries. With conversational AI, banks can automate several cumbersome customer support activities. As a result, employees will bear less burden and be satisfied with the bank.

Cost cutting

Banks often look for ways to reduce operational costs. While lowering operational costs, banks cannot compromise on service availability or business continuity. Luckily, conversational AI has allowed banks to slash operating costs for customer support services. Several routine processes related to customer support can be offered 24*7 with conversational AI solutions. Not only will banks hire fewer customer support employees, but they will also use fewer in-house resources. Bank reps can be reserved for complicated customer queries that require a human element.

Specific use cases of conversational AI in the banking industry

Some common use cases of conversational AI in the banking industry are as follows:

Jump bots

Banking customers often wait on hold to connect with a customer support individual. Until the bank agent picks up their call, customers keep waiting. A higher number of waiting calls can increase the pressure on bank reps. Banks are now using jump bots for customer support to solve this issue. A jump bot will transfer the waiting customers to a free agent or chatbot. Jump bots can also schedule the waiting customers for future slots.

Payment bots

Banks must remind customers of upcoming payments and bills. For the same, banks are now using payment bots. Without any manual interference, payment bots can notify a customer about the upcoming payment. Not only can banks boost service availability of alerts and notifications, but they can also enhance the customer experience.

Chatbots

One of the most used applications of conversational AI, chatbots have redefined the customer service sector. Different providers offer chatbot solutions to banks. Banks can embed a chatbot with their website to help customers. AI-led chatbots can learn after each customer interaction. Banks can also choose to outsource the development of a personalized chatbot instead of using a readymade solution.

Voice assistant

When banks interact with customers, they need to know more about their history. Often, banks spend time looking up a customer in their databases. Voice assistants help bank reps to ask for any information and access it in real-time. Consider a voice assistant as a personal secretory that gets you any file within minutes. Boost the customer service department of your bank by AIOps adoption leveraged with the conversational AI solution!!

request a demo free download