Conversational AI in Retail Banking

Written by CFTE’s Experts

Consumers are using various channels to access different services in their lives. However, they always expect to have the same level of consistency and service from their banking partner. It is where conversational AI is generating new opportunities for retail banking companies. 

Conversational artificial intelligence can be defined as an intelligent mechanism of imitating real-life human conversations with the help of technologies like machine learning and natural language processing.

Let’s see how it is transforming the retail banking industry. 

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How is Conversational AI changing Retail Banking?

Conversational AI is changing how banks use to engage with their consumers in more convenient and frictionless ways. Conversational AI is enabling the digital transformation of your business more effectively. 

As per a recent survey, about 90% of the banking sector’s interactions are going to be automated by 2022. To stay competitive in the industry, organizations have to rethink their strategies for improved customer experience. 

Conversational AI can help them to be prepared and meet the rising demands and expectations of their customers. 

From fintech to financial services and banking, conversational AI can help organizations build conversational and unique applications and can use these to develop a broader AI experience for their consumers. 

Even more, conversational AI can also help organizations to understand their consumers better. It is because with every conversation you can get an opportunity to learn more about the interests, likes and dislikes, their plans as well as changes in circumstances. All of such information can help the retail banking sector to offer proactive and more personalized service. This will ultimately boost the engagement and loyalty of your consumers with your organization. 

 

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Examples of Conversational AI in Retail Banking:

Here are some of the most important use cases of conversation AI in retail banking that will let you understand how this approach can be used in this sector more effectively. 

So, here we go:

– Conversational AI can help in developing limitless applications ranging from conversational interfaces to customer support. AI chatbots can be applied across any platform to deliver enhanced user experience opportunities. 

– Conversational AI can help you to offer instant responses to the queries and questions of your consumers. By this, you will be able to avoid any delayed response. It is because the frequent delayed response can result in loss of business. 

– You can introduce a virtual agent to your customers. It will not only improve customer experience but also help you lower the cost of providing services.

Companies using Conversational AI in Retail Banking

Banks such as the Bank of America and ATB Financial have been some of the early adopters of conversational AI in the form of AI chatbots. 

The Bank of America launched its conversational AI-based chatbot named Erica in 2018. This chatbot has served above 10 million consumers since then. What’s amazing is that Erica was able to understand the questions with close to 500,000 variations by mid-2019.

 

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Final Words

Overall, conversational AI has the ability to offer the best of both worlds. It can take your consumers back to the good old days where they will be able to talk to a person at the credit union or bank. What’s astounding is that conversational AI-powered chatbots still allow for service personalization. This technology should be a priority to enhance efficiency and improved customer experience in retail banking. 

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