bankingciooutlook

How Chatbots Are Transforming the Way Banks Operate

Banking CIO Outlook | Tuesday, May 04, 2021

Chatbots are less costly than human employees. A chatbot has a one-time development cost and must be updated with information over a limited period of time before it can accommodate thousands of customers through several platforms.

Fremont, CA: Banks are no exception to the trend of incorporating artificial intelligence into their market and operations strategies. Rising customer preferences, as well as an emphasis on personalized, digital interactions, are pushing banks to design, test, and deploy new consumer tools. Among these is the not-so-innocent chatbot, which is ushering in a new age of conversational banking.

Let us have a look at how chatbots are positively impacting the banking industry.

Reduced Operational Costs

Chatbots are less costly than human employees. A chatbot has a one-time development cost and must be updated with information over a limited period of time before it can accommodate thousands of customers through several platforms. The cost of training and employing humans for the same job is significantly higher. Furthermore, developing a chatbot that works across multiple customer touchpoints can be less expensive than developing a custom banking app, particularly when using a cloud-based platform.

Not Limited to Just One App

A chatbot, unlike an app, can run on platforms that your customers already use, making it easier to provide support, nurture leads, and build omnichannel customer experiences. Chatbots allow one to meet customers on their terms, from social media channels like LinkedIn and Facebook Messenger to voice assistants like Siri, Bixby, and Google Assistant.

A Speedy Interface

A mobile banking app must be downloaded and installed before it can be used, and even then, it is usually navigated utilizing buttons and menus. A chatbot, on the other hand, responds to queries in a conversational mode. Chatbots allow us to seamlessly connect with businesses and quickly execute financial tasks in a customized and intuitive manner by mimicking human patterns of interaction and learning from each engagement. Another consideration is pace. When one compares the frustration of waiting on hold with a customer service executive to the near-instantaneous responses one would get from a chatbot, it's easy to see why the chatbot is gaining popularity.

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