Conversational AI in Banking: Learning Vital Concepts

Updated on Feb 6th, 2024


Changing with technology and offering a smart solution to customers has been a crucial part of the banking industry. The businesses from this industry do not just focus on providing the services but also want to become a reliable partner by becoming trustworthy in this technology-driven world. The banking systems must be smart yet simplified enough to support the clients and offer them impactful solutions. Artificial intelligence is used within the banking industry to help banks accept and grow with digital transformation. Conversational AI in banking is also a demanded solution within this sector.   

The banking market size is expecting a boom due to AI integration. The market size is anticipated to reach $130 billion by 2027 at a CAGR of 42.9%. (SOURCE) The growing demand for data-driven solutions has propelled the use of AI globally within the banking sector. People now want a better shield against fraudulent activities and scams, and thus it is raising the demand for AI-driven solutions. Here through this blog, we will discuss every nook and corner that AI in banking includes.   

  • There are multiple use cases of conversational AI within banking, from offering transactional detail to resolving common queries related to the bank processes.  
  • There are multiple benefits of AI in banking, including but not limited to customer support enhancement, offering personalization, simplifying the complicated process, and much more.  
  • The future of banking is going to shine with conversational AI-driven tools. 

Use Cases of Conversational AI in Banking 

It is quite evident that customer gets annoyed when they have to stand in a long queue to get the details about their transaction; it also creates hustle for the employees within the banking industry. This scenario is well handled with the help of artificial intelligence by adding conversational tools that can offer perks to both the business and the customers. Being physically present within the bank campus is not mandatory now as the customer can now operate different bank related affairs by sitting at their comfort level. How you ask? Well, here we have listed major use cases of conversational AI banking, and they are: 


1. Resolving the Queries 

Sometimes, users or customers have some common yet vital query about any bank-related process. For example, there are different loan types, and the guidelines for each can be other. The customer would want to learn about them before applying for the same. With the help of an AI-driven chatbot, customers can be provided with important information about the same.  

2. Payment and Transaction Management 

It is a daily chore for people to pay bills in different activities such as online shopping, clearing bills, etc. The transaction might be small or huge, but the users wish to track their payments, for which they turn to banks. Now helping individual customers with their transactional detail can be tiring work for employees. But when conversational banking methods handle it, it becomes easy for the users to track their transactions by using chatbots’ help. 

3. Easy Document Sharing 

Your customers would need to submit certain documents for verification and final approval of the process loan. Due to inconsistencies within the verification process, the customers do not get the last yes. This is frustrating for both you and your customer. It happens due to the lack of knowledge about the documents required by the customers. But with the AI in banking, document collection and verification has become super easy and quick as the AI based chatbot eliminates the visit to the ban and shares the proper information about the requirements of the documents making the customer aware.   

4. Sending Reminders and Alerts 

It’s often seen that users forget about vital payments or their installment dates. This situation has a modern solution as conversational AI banking offers a personal alarm for every individual. The users can customize the reminders as per their requirements, and the banks also can approach them by sending them notifications or alerts for their pending payments. It helps the customers be updated about their transactions without missing any important ones. The alert is also sent when any fraudulent activity is noticed to prevent any breach in security. 

5. Simplifying the Complicated Process 

The bank processes are generally complicated as it includes vital data. Managing these data well for every customer with speed and accuracy is not tough for artificial intelligence-driven conversation tools. For example, unlocking a credit card or resetting the password needs accuracy and attention. With the help of an AI chatbot, these processes can be automated, which means the effort decreases, but the resulting quality is error-free and quick. 

Also Read- Enterprise AI: Driving the Business in Future

Advantages of Conversational AI Banking  

Users often crave for comfortable journey when they think about the bank-related process. Complexities are involved in the banking tasks, so the customer looks for a way that makes the complications easy for them. With conversational banking driven by AI, the customers and the banks can bag the required benefits. Some of the major perks of using AI-driven conversational tools in banking are: 


1. Reduce the Wait on KYC  

KYC is one of the vital processes that banks must complete periodically as it helps ensure that their customers’ profiles reflect information with the latest update. The method of KYC needs specific guidance and can be time and effort-consuming. With the help of AI-driven chatbots, the customer can easily eliminate this waiting time by offering customers simplified guidance about the documents required from their end to complete the KYC process. AI trends in banking connect the KYC process with the customer at their comfort level. Now this time reduction does help the customers and increases your customer satisfaction level.  

2. Personalize the Banking Experience  

The demands of customers have risen in this advanced era of technology. Customers of the banking industry are willing to change the traditional mode of banking processes. This can be done with the help of AI-driven conversational tools using which the individual customer’s journey can be customized per their requirement. The customers get the opportunity to manage their bank-related work in a personalized form, which reduces the waiting time and effort from the customer’s end. Personalization helps the banking industry as they get a more precise form of data from their customers, which ultimately helps them grow. 

3. Engaging Customers  

The banking industry hires the best AI development services provider to increase customer engagement via conversational tools. Customer support can be enhanced using the chatbot approach, where different applications such as WhatsApp can integrate with the AI-driven chatbot, and customers can easily drag out the needed information. Banks also prefer to have personal applications combined with conversational AI, which is also a good method to improve customer engagement with the business. The queries or information related to the transactions can be made easily using the alert via message option.  

4. Simplify the Loan Application Process  

There are different sections for various types of loans within any bank, and the employees have to spend time verifying the process of each loan type and approving them as per the bank’s policy. These methods can be hectic and tiring for both the employees as well as the customers. Guiding the customers and customers understanding the complicated process is another set of challenges faced in the traditional approach. This is where conversational AI in banking comes to the rescue; with the help of a chatbot, loan-related information and guidelines can be conveyed to the customers about the various types of loans they are interested within. It will shed the load on the employees and offer the customer an approachable window to apply for the loan.  

5. 24*7 Customer Support  

Improving the customer experience by enhancing the support offered to them is also a significant demand within the banking sector. The business can generate more revenue only by keeping its clients or customers happy. And this is not just possible by offering them the services, but it also takes the effort to be there to solve the customers’ queries whenever they approach. Now, whenever is a term that demands flexibility from the organization and its employees. Being available 24*7 to solve doubts about customers’ sittings at different global locations is a hectic task. But when conversational AI is paired with the bank system, this can be an easy job. Chatbot driven by AI can be available 24*7 for interacting with the customers and offering them the solutions to their queries, improving your customer support experience.   

Also Read- How to Develop AI Customer Service Software?

6. Elimination in Error  

Hiring developers to offer you a custom baking solution to meet the specific requirement by customizing the existing tool is something that many banks are doing. But this customization is done by integrating the conversational AI within. It helps in preventing any errors which can drop out as a blunder. When the different bank processes are done with the traditional approach, the chances of error are high due to human involvement. AI-driven tools work on the same process, eliminating the risk of error and securing the entire process and its outcome. 


AI Trends In Banking Will Shape Its Future 

It is undeniable that virtual financial assistants driven by conversational AI will take the engagement and loyalty of the customer within the baking industry to another level in the coming years. This strong statement can be supported by the rising demand for mobile applications integrated with technology for bank-related affairs. In the coming time, AI is going to play a huge role in shaping the banking industry and making it more approachable to customers. The customers can enjoy enhanced engagement methods, which will drive a smooth and better version of the services.  

With the help of conversational AI services, banking industry can revolutionize the techniques used for grabbing the loyalty of its customers.  AI-driven tools are boon for the banking system as well as its customers. The chatbots offer an interactive session and then provide the resolution to the customer’s queries. These chatbots provide security to the data inserted by the customers and offer accuracy in terms of resolving their doubts. The automated process saves time and effort and raises the bar of customer experience for the entire banking landscape. 

Enquire now

Give us a call or fill in the form below and we will contact you. We endeavor to answer all inquiries within 24 hours on business days.