Whilst the advances in digital technology is waving goodbye to manual administration, the breakthrough of chatbots has revolutionized the financial industry. Financial institutions were originally experimenting with how chatbots can be integrated in strategy, without actually realizing its powerful capabilities. No longer is robotic technology something that performs repeating tasks, it can do so much more, and the finance industry is beginning to benefit.
According to Deltec Bank, Bahamas, “Chatbots are an evolving kind. Artificial Intelligence has meant chatbots can go far and beyond its offering of just conversational service.” Banking and Finance rely on customer engagement, and chatbots can offer that in abundance. However, it can go further than just human-like interaction. The Financial Brand estimates that AI can save the Banking industry over $1 trillion by 2030 through the roll-out of chatbots, which represents over 22% of banking expense load. Whilst money will also be saved from the reduction of staffing and resource, the money will also be saved through transforming operational strategy efficiencies.
Let’s breakdown the ways how chatbots are transforming the financial industry:
- Conversational Interface – Eventually, customers will not want to access banking and financial service through telephone and would rather seek more efficient ways of communication. Customers want instant answers to their needs. Chatbots’ experiences can mimic human conversation through natural language-based technology to understand and respond through chat, text, and voice. Customers will be able to enjoy efficient customer engagement and instant real-time communication.
- Personalized Banking – It’s now in high demand for customers to provide personalized banking solutions. Chatbots can process data to act upon the customer’s banking behaviors and trends to personalize what they need. Customers no longer have the need to visit kiosks and branches and are more likely to switch to use banking companies that cater to personalization. Chatbots can communicate what they’re looking for and it’s more than likely to deliver what customers needs.
- Fraudulent Detection Automation – Security is fundamental amongst everything is accessible online. When customers used personalized and mobile banking, they expect payments and services to be robust and secure. Fraud detection analytics within AI is allowing payments and behaviors to be tracked. Chatbots can scan accounts and account activity that can notify users when transactions are made. Where there is a sudden shift in funds transfer, chatbots can stop halt the transaction and request the account holder to confirm the transaction. Account access may be redeemed where consent is negative.
- Service Promotion and Management – Chatbots will monitor every transaction and activity performed on an account. Chatbots have the unique capability of using this data to provide accurate assessments on their financial status through their balances and expenses. The chatbot may can then use this information to provide product and service recommendations that they could benefit from in the long-term. If customers are searching for new products and services, the chatbot can interact to retrieve this information for them. Known as proactive interaction, customers would be happier for chatbots to identify what it is they need. This generates trust and better engagement.
Chatbots are no longer just conversationalists, they can now look after the financial needs of customers and institutions. Along with being the new face of customer service, there is no shortage of what chatbots can learn and process. Through real-time availability, instant and accurate responses and adapting to customer needs, chatbots are the new face of financial interaction.
To sum up, the advances of digital technology is transforming financial strategy. By cutting out tasks that take up resources, cost and time, institutions are integrating the use of virtual assistants, known as chatbots to perform accurate responsibilities that a human would. The perks are real-time availability, productivity, accurate response, promoting efficient customer engagement and highly-efficient service that is secure for customers to interact with.
Disclaimer: The author of this text, Robin Trehan, has an undergraduate degree in Economics, Masters in international business and finance and an MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.