Chatbots in Banking: Pro & Cons

Chatbot is a simply a computer program that responsively interact with people. It’s a conversational robot. Chatbot is the next big thing that is being touted in technology. Tech giants like Facebook, Google, Apple, CNN, HSBC, the NBA, etc have already implemented Chatbot and have added the value to its popularity.

According to a survey by LivePerson, Chatbot development is gaining popularity globally. Out of 5,000 people incorporated by the survey, 38% of them globally rated their overall perception of Chatbot as positive and only 11% have reported a negative perception for the Chatbots; while 51% had neutral stances.

Chatbot development is also exploding the finance industry. It’s having the ability to automate operations and thus reach to more customers and provide more friction-free banking experience. With all these features, chatbot development is streaming and optimizing in many of the bank’s digital services.

There are many concerns that any bank would consider before launching chatbot services. Several banks have already announced plans to roll out live services to customers, suggesting that they believe the opportunities outweigh the concerns.     

Bots operate based on “if this, then that” underlying logic. For example: if a bank decides to enable balance notifications for their users, a chatbot can be set up so that when a customer asks “balance,” they get an answer with the exact amount of money currently available in their account.

Chat bot technology is a great opportunity for banks to help customers save time and get their financial questions answered quickly. But it’s more than just that.

Biggest business benefits of chatbots:

• Chatbots as the new, 24/7 face of customer service tool that can operate without any human interference once they’re set up.
• Chatbots can help automate fraud prevention processes and collect critical information from potentially impacted bank users.
• Bots can push relevant content to end users and test user engagement
• Bots can lead a company’s personalization strategy and generate incremental revenue
• Chatbots & automated data gathering (and improvements)
• Chatbot development ensures brand consistency – one voice, one message, one tone for every customer
• Chatbots = zero turnover
• Chatbots mean no peak times or extra staffing projections for the holidays
• Bots can run smoothly during during both low volume times and peak times, which means that the response rate and times will always remain consistent, allowing for a great user experience.

Chatbot challenges and limitations:

• Chat bots are not able to give the right answer unless questions are asked exactly how they are setup to interpret a user input.
• Chatbots are not known to be able to interpret multiple questions asked at one.
• Not interpreting the question correctly – context awareness
• Chatbots are too impersonal
• Chatbots are not fully equipped to deal with “real life” scenarios

Chat bots are reshaping and reimagining how industries and individuals interact with each other, as well as how data is collected and communicated between parties.

Without any doubt, chatbots represent an incredibly powerful technology that can be leveraged within the banking industry to both increase customer satisfaction and decrease the cost to serve for bank users across the board. LetsNurture, being expertise in chatbot development can help you built your custom chat bot. You can ping us at info@letsnurture.com and also receive a free quote for the same.