How Chatbots Can Improve Customer Experience in Banking

By Emily Pribanic - Last Updated on January 28, 2020
How Chatbots Can Improve Customer Experience in Banking

Customer experience has enhanced over the past few years thanks to chatbot technology.

Chatbots are allowing banks to improve their customer experience by providing helpful answers and information instantly. With chatbots, traditional banks can keep up with FinTech startups better and offer some of the same baking solutions.

Chatbots are improving customer experience in many industries, including banking. Chatbots are improving the experience customers have by being available 24/7 and being able to address problems the moment they arise. Chatbots are also allowing self-services offered to go more smoothly

How Chatbots Can Improve Customer Experience in Banking

Chatbot technology has allowed banks to acquire more customers opening new accounts. For customers looking to open a bank account, many are not interest in reaching out to learn more about the bank. When banks do not have the most basic, important information on their website, most customers move on to the next bank and that bank loses out on a potential new client.

Chatbots are helping to acquire new customers by offering to answer any questions when people are visiting a bank’s website. This invitation to question asking drives customer business to go beyond just browsing and to capturing that customer as a client. Most customers use mobile banking apps to monitor their funds. Many customers also want to be able to check their credit score, check the status of their service request, receive notifications and manage budgets. When banks use AI bots that can answer these inquiries quickly, customers are much more satisfied with their banking experience. The best AI chatbots are also able to provide customer support. Chatbots can provide this support immediately and answer questions quickly because many customers have the same questions. When a bank’s chatbot technology can store these questions with their answers in a database, they can distribute the information to the next customer inquiring faster.

Banking Chatbot Architecture

Chatbot development has matured over the last decade. From reducing time spent on generic customer questions to initiating action on its own, chatbots have continued to learn through advanced machine learning and natural language processing. Chatbots today can perform multiple tasks on their own and can analyze structured and even unstructured data. Chatbots can also analyze high volumes and velocity of data. They can do this through conversational analytics and can provide real-time insights to help companies make better decisions.

The architecture of chatbots has grown from only being able to answer repetitive employee and customer questions, to the ability to perform tasks like scheduling meetings and auto ordering needed items for the business. The chatbot design has transformed from a simple digital tool to a complex digital assistant. Chatbots in banking improve customer satisfaction by giving instant responses, being available any time of the day, remembering customer preferences and much more.

Chatbots in Financial Services

Chatbots are already being used in FinTech startups so it is necessary for traditional banking institutions to keep up. Bot technology not only provides a better customer experience and streamlines compliance processes; they also save money. Without chatbots, banks can take more than two months to onboard a new client and spend a substantial amount of money doing it. The reason for this is the fact that many banks are not equipped to handle the kind of due diligence it takes to onboard a new client at the scale they need to succeed.

Many banks are still using paper-based systems and have yet to automate processes that can cut the user onboarding process to minutes. When clients can provide necessary information to a chatbot interface, the information can be verified immediately and streamlines a process that use to take days or weeks to accomplish. When banking institutions offer chatbot technology delivered across multiple platforms like on a messenger app or the company website, customers can access a full range of services the moment they need them. This type of instant satisfaction is what our society is getting used to and banks that can provide this satisfaction are providing customers with a better experience from all ends.

Chatbots are improving the customer experience for the banking industry. Before chatbots, customers constantly had a negative experience with their banking institution, especially when it came to answering important questions immediately. The chatbot experience has grown throughout the years and has not only gotten better but has also allowed companies to become better.

Emily Pribanic | Emily is a graduate of the University of North Texas. She has her B.A. in Advertising with a concentration in Copywriting. Emily has been writing since she was young and has a creative imagination. She lives in Dallas, Texas with her family and two cats.

Emily Pribanic | Emily is a graduate of the University of North Texas. She has her B.A. in Advertising with a concentration in Copywriting. Emily has been writing s...

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