The financial industry is among the top five industries adopting the conversational AI services i.e. a chatbot. Amid the pandemic, the providers of global financial services preferred the implementation of chatbots within their various applications or websites to ensure smooth functioning. Later, post-pandemic, it was noted that these chatbots had become a necessity as these bots played a vital role in complying with the social distancing regulations. The interactive features of these AI-driven chatbots have helped financial firms to maintain the connection with their customers and offer them an enhanced version of customer service.
How Choosing the AI Developmental Services Changed the Landscape of the Finance Industry?
Artificial Intelligence (AI) is changing how financial firms operate and interact with their customers. The advanced technologies within AI have become new normal adaptations within the deliveries of financial services. It is also projected that by using conversational AI tools, the chatbot will help financial firms save $7.3 billion till 2023
It has also been found that AI-driven chatbots will be a dominant channel that will increase the efficiency of the communication between customers and finance-related companies by 79% in 2023 (Source). Here, through this blog post, we would like to introduce you to the various phases of the finance AI chatbot. These will give you a glimpse and let you witness the depth of these chatbots’ services.
Benefits of AI Chatbots In Finance
In this age, customers expect fast and accurate customer service from the organization. Chatbots can be the solution for this requirement and also help you enhance the customer experience. Here are some vital benefits the finance industry and its customers can bag through chatbots.
1. Cost and Time Saving
One of the best benefits of using a chatbot in finance industry is that it helps companies to save lots of money and time. Catering to customers by answering multiple questions has been a great challenge for the traditional form of customer service. With the implementation of an AI-powered chatbot, there is no need to hire a huge team and pay for their training. The chatbot can be customized as per requirement and can be designed to answer the customers’ questions to offer them a smooth interactive experience. Thus, the companies receive the perk of saving the two most valuable resources: time and money.
2. Improve Customer Experience
Another great perk of using a finance chatbot is that it helps in enhancing the customer experience. There are multiple aspects in which customer service can be connected to the offerings that these chatbot have for the company. They are:
24*7 Customer Service
Using the chatbot allows you to connect the global clients by offering 24*7 service to customers worldwide. The customer need not wait for the official work hours to begin. Rather they can gather the required information or clear their doubts by interacting with the AI-driven chatbot.
Easy Site Navigation
One of the other crucial aspects connected to customer service is offering them complex-free site navigation. You cannot expect easy lead conversion when the customer gets confused over the first step. The adaptation of AI in finance industry holds the solution for this issue in the form of chatbots. With the help of chatbots, website visitors can easily navigate to the right destination or pages they are looking for.
Instant Problem Resolution
No customer likes to wait on hold for their queries to be resolved by the end of the customer service provider. But the customer service center can handle a limited number of questions. This sometimes also becomes the reason for the lead diversion, so to save this situation, AI-powered chatbots are used to help customers by providing them with instant resolution without wasting any time waiting.
3. Empowered Agents
The chatbot in finance has offered agents working within this industry the power to focus on their tasks better. With the adaptation of chatbots, complex tasks such as answering multiple queries of customers are no longer hectic for the agents. The chatbot handles this service and lets the agents use their time more wisely and think of other ways to enhance the company’s customer support.
4. Gather Consumer Insights
The best fintech software development service providers are hired by the financial industries to help them in collecting data related to customer behavior. Companies adopt chatbots as they offer the benefit of gathering customers’ insights. The chatbot lets companies manage feedback regarding different plans and policies they offer. Using AI and ML, the bots can generate the required data and present it to the company, which can be used to make better decisions.
5. Increase Sales Conversions
It will not be wrong to say that AI-powered chatbots have added the benefit of having a new marketing channel for companies offering finance-related services. Chatbots have proved to be highly effective in increasing lead generation and conversion. It has become the proper guidance that chatbots offer when someone visits the company’s website. The chatbot greets them with a human-like interaction and guides them by providing answers to their queries.
Use Cases of Chatbot in Finance
Benefits will only give you hope about how AI-powered chatbots can help your company to grow. But here, we would like to provide you with a clear picture of their application by presenting some of the major used cases of these chatbots.
1. Fraud Detection
One of the biggest concerns that the financial industry faces is data privacy. Companies must be very careful about their personal and shared data with their customers. This challenge is resolved by adapting AI in finance. With the help of this technological swiftness, the financial industry can reduce fraud cases. It has been noticed that most fraud cases occur due to the loophole created by human error in the process. AI chatbots used within financial services can help prevent these issues by automating the process of identifying the signs of fraudulent activity. In case of any such incident, the bots can immediately send an alert to the company and the customers.
2. Virtual Assistant
Another area within which chatbot in finance industry can be used as saviors is, acting as customer support agents. These chatbots can work as virtual assistants and help companies with many tasks that require human labor to be completed. Financial companies can rely on these bots and have efficient operations, which enhances a company’s growth.
3. Regulatory Compliance
The financial industry is counted among those that must be heavily regulated and keep up with the changing standards. Some financial firms even have ties with chartered accountants, legal firms, and tech consultants to ensure that their in-house regulatory requirements are upgraded. Machine learning solutions can help reduce the complexities involved in this process. Chatbots can inform customers about the regulatory compliance terms and answer their queries related to the same.
Home loan is a common offering that almost every finance-related company has for their customers. The significance of mortgages is why finance companies hire AI chatbot development services providers to customize a chatbot that can provide needful information about terms and conditions specific to a mortgage. Conversational AI can offer a dedicated channel via chatbot service that would answer the customer’s queries and let them make their decisions with clarity.
5. Tax Assistance
Undoubtedly the matter of tax has some complexities attached to it, which make customers turn to the experts so that they can do their taxes right. Not one or two, but multiple questions or queries must be cleared up before the customers get involved in the process. This is where the AI-driven chatbot is required to help in assisting the customer with the information related to the taxes and guide them through the entire process.
6. Instant Loan Approval
Another benefits of AI in finance can be witnessed through the ease chatbot has created for the loan approval process. Customers now do not have to wait in line and cover the mountains of paperwork. AI-powered chatbot has made a paperless and quick loan approval process reality. Customers can now clear all their doubts through the answers that chatbots offer and can apply for the loan using online websites.
7. Financial Advice
The era demands people be stable with their financial assets. People need expert advice on their financial health, which is also easily fulfilled by implementing chatbot in finance industry. They do not just offer clarity to the customers by answering their doubts but also guide them step-by-step to make better decisions for their investment or any other finance-related plans. It also helps financial companies gather data about customer spending habits and their doubt fields, which allows the company to alter its strategies to attract more customers.
Top AI-Powered Chatbots Trends
It has become an undeniable fact that AI chatbots are transforming financial business models. Initially, they were considered as a tool to advance customer service. Still, with the advancing technologies of ML and NLP, AI chatbots are destined to offer much more value to business processes. These chatbots have revolutionized the way companies operate, so it’s vital to look at the finance chatbot trends that will shape the future of businesses.
1. Conversational AI and Meta World
It’s noticed that the tools within conversational AI chatbots would become the backbone for the success of the Metaverse. Soon every virtual space used within the financial industry will require AI-driven chatbots to guide the customers and offer an impressive experience to the users.
2. AI Chatbots With Emotional Intelligence
The other area in which the AI wants to spread its wings is understanding human emotions. From tracking facial emotions to analyzing the video interaction, the AI will have its focal points spread wide. It will lead the use of chatbot in finance industry and make it a necessary asset to project these emotions and interact accordingly with the customers.
3. Specialization of AI Chatbots
Companies in the financial industry wish to use this intelligent chatbot’s interactive features for their projects. For example, suppose a financial company is launching a new loan program. In that case, they can hire AI development services provider and ask them to customize the chatbot specific to their loan program.
AI chatbots have emerged as a highly successful investment in the finance industry. Its functions are not limited to offering answers to customers, but its interactive customization can also help generate quality leads. You would have to agree that there is a time coming when organizations will be using this conversational AI tool within the function of Human Resource Management, Product Training, IT, and so on.