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The Role of Conversational AI in Banking
The Role of Conversational AI in Banking

September 13, 2022

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With technology evolution, people have been using bots, banking, and finance apps for a decade for faster resolution to their requests. As these apps allow them to perform their banking-related tasks from the comfort of their place, they find comfort and convenience in banking apps. But now, with the prevalence of technology, banking leaders have the opportunity to get more advanced and voice-activated banking to offer exemplary services. And the new ripple in a tech-focused market is the one compelling question- Does banking really require Conversational AI assistants or AI bots? Let’s find out the answer. 

Imagine a World without Voice Assistance 

Do you remember the time when we used to rely on on-call support to resolve our queries? However, with the call support channel, everything was not really smooth and functional every time the customer support channel was approached. Frequent delays and higher turnaround times in query resolution were the constant norms. Even to fulfill minor routine activities, banking service agents often struggled due to high volume queries and less support. 

Although by embracing technologies like RPA for banking, banking leaders have achieved some level of efficiency, enhanced faster customer support and ruled out the need for 24/7 availability of operational staff. As RPA bots are handling routine activities, banking employees get more time to focus on making decisions and offering a significant customer experience. But what if banking employees could get decision intelligence in just a few seconds?  Wouldn’t it be amazing? Sounds interesting.


Conversational AI in the Future of Banking Industry

From the customer's point of view, How would you feel if, before you say anything, all your questions were answered intelligently? With Conversational AI technology, you can. Using an AI-built chatbot and virtual assistant, all your interactions are read, processed, and understood properly so that you receive comprehensive solutions from banking employees. As per a research report, around 84% of businesses that are focused on enhancing their customer experience have reported an increment in their revenue. And Conversational AI is an opportunity to fulfill customer expectations and become the first choice of your customers. 

Conversational AI comes with AI technologies like Natural Language Processing (NLP), Machine Learning(ML), and others to understand customer intent and respond without any manual intervention. From bridging the gap between banking employees to higher customer engagement, Conversational AI in banking offers enormous support to employees. Conversational AI indeed adds the flavor of decision intelligence for better decision-making and creating a delightful customer experience. Banking organizations can utilize Conversational AI from the backend to front-end operations. Let’s discuss them in brief.

Front-End Banking Processes

The Front-end banking process impacts the customer satisfaction scores most because these are revenue-generating and client-facing solutions, as these processes are usually the first touch point for customers. Conversational AI comes in handy for banks looking to boost their CSAT score by creating frictionless front-end experiences. Front-end processes that Conversational AI can automate are-

  • Account Management
  • Transactions
  • Financial and product advisory
  • Customer Support

Middle-End Banking Processes

The middle-end banking process consists of the process that directly complements the work of your front-end team to ensure- more customer satisfaction and better user retention. For example, An AI bot can reject an ID during KYC verification autonomously if it doesn’t match the records without any manual intervention. Middle-end banking processes that  Conversational AI can automate are-

  • KYC Management
  • Biometrics
  • Process Automation
  • Compliance Solutions

Back-End Banking Processes

Back end banking process works on keeping the fundamentals of bank operations steady. These back-end processes are not customer-facing but ensure that front and middle-end operations run smoothly. Conversational AI in the back-end banking process can streamline repetitive and manual processes like data extraction and processing, generating alerts and notifications to customers. Back-end processes that conversational AI can automate are-

  • Fraud detection
  • Generating notifications
  • Cybersecurity 

Benefits that Conversational AI Brings to Banking 

However, the banking industry has pioneered digital innovation by being the first one to adopt technologies for not only creating customer experience but also building delightful employee experience. As per the Accenture report, the banking industry believes that AI will work next to humans in their workplace as a coworker and trusted advisors. Benefits that conversational AI brings to the banking industry are-

1. Low reliance on manual effort

By giving manual and repetitive tasks to AI chatbots, Conversational AI rules out the need for manual staff available 24/7. AI chatbots can efficiently handle customer queries and understand their intent utilizing AI technology like NLP and offer the resolution customers are looking for. In any case, the AI chatbot is unable to resolve customer queries; it can keep humans in the loop for further resolution. 

2. Accelerated real-time customer support

Unlike traditional customer support, Conversational AI customer support enables banking employees to offer a real-time resolution. AI enables real-time information by taking over data extraction and processing independently. With faster data access, AI chatbots remove the need for employees to shuffle from one system to another for information. Eventually, this further enhances employee and customer experience as well. Also, with Conversational AI, you become the first choice of your customers. 

3. Cost reduction by a great deal

This is one of the top benefits that the banking industry could achieve by utilizing conversational AI technology. By taking over manual effort and empowering employees with faster AI assistance, conversational AI reduces operations costs as well. As per Juniper research, the banking industry can save up to $7.3 billion globally by 2023, and that is a 35x increase from $209 million in 2019. 

4. Faster decision intelligence for employees

By utilizing Conversational AI technology, employees get better decision-making for complex business processes. AI technology like Machine Learning (ML) constantly learns from each interaction and keeps the data intact for employees in offering a personalized experience by understanding customer interest easily. 

Conclusion

Whether you embrace it or not, Conversational AI is here to stay. From creating a high customer retention rate to offering higher ROI on automation investment, Conversational AI is one package that keeps customer convenience the top priority.  And the banking industry, which is encumbered with manual and repetitive processes, is the perfect candidate for embracing automation. The future is bright with Conversational AI; your banking organization should be too. Therefore, it's high time to make a move before it's too late. 

 


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