Globally, the chatbot market has seen an explosive growth since 2015, growing at 35% CAGR. According to a report released by Juniper, chatbots will be responsible for over $8 billion per annum of cost savings by 2022.
Fintech companies are at the forefront of chatbot adoption. According to a report released by Gartner, consumers will manage 85% of the total business interactions with banks through Fintech chatbots by 2020. In this article, we analyse how chatbots can solve some issues that financial institutions face in offering a superior customer experience. We also look at different firms across the world that are using chatbots effectively.
Superior customer service
Chatbots are an interesting solution to the many issues that commonly plague service centers –
- Chatbots tackle the issue of scale conveniently. Unlike agent-based customer service teams, a chatbot network does not choke with an increased inflow of customer queries. Nina, by Swedbank, resolves over 80% its customers’ queries.
- They offer 24 x 7 availability. Bank customers expect support round the clock – something that might be challenging to implement with customer service agents.
- They reduce the turnaround time to solve customers’ issues. On an average, a chatbot inquiry saves more than 4 minutes in comparison to traditional call centres.
- It is easier to deploy chatbots to reach out to customers on social media than to have customer service agents do the same. Many established financial institutions such as Mastercard are now deploying chatbots on social media platforms such as Facebook messenger.
Personalized suggestions to customers
Personalization is the key to a superior customer experience. However, personalization becomes a huge challenge to companies, when it has to be done on a case-by-case basis. Financial institutions handle lakhs of customers every day, and to be able to offer personalized recommendations to all of them is a daunting proposition. This is why personalized advice is usually reserved for premium customers.
Algorithms powered by artificial intelligence changes all that. Softwares built using these algorithms can come up with recommendations most relevant to a user. Chatbots can be the interface that communicates these suggestions to the users. Backed by natural language processing tools, they can also understand when the user chats with them in human language, and respond accordingly.
Bank of America launched “Erica” – that gives personalized financial advice to its clients. Erica, for example, would advise its client –
Erica uses artificial intelligence, predictive analytics and cognitive messaging to help customers do things like make payments, check balances, save money and pay down debt. She also directs people to look up their FICO scores and check out educational videos and other content.
Through Erica, Bank of America has extended some of the benefits of the one-to-one personal service and advice usually reserved for top-tier customers to everyone.
CapitalOne and AmEx also send contextual recommendations to their clients through chatbots. JP Morgan Chase has saved over 360,000 hours of its agents’ workforce, as on Aug 8th, 2017 – thanks to its personal assistant chatbot.
The financial chatbots landscape in India
India is a key player in the chatbot market today. A few chatbots developed in India are well positioned to compete in the global market.
Several established banks enable their customers to understand policies better, resolve issues, try newer products, etc. with chatbots.
In the insurance sector, chatbots are helping customers get a quote, raise a claim, understand policies better, check policy status and locate insurance branches easily.
If you want more information about how a chatbot can reduce costs and enhance customer experience, please do get in touch with us.