Big tech companies — Google, Apple, Facebook, Amazon, and Microsoft (GAFAM) — have set the bar high, so now, customers expect a myriad of services and products to be available around-the-clock, all while ensuring exclusive user experiences and immediate omnichannel support.
Financial service providers and banks often have a large number of customers, and offering an individual approach to each client at scale can be challenging. Without cognitive technologies and automation, it’s nearly impossible to meet those demanding standards and keep your leading positions.
Even though chat bots using NLP (natural language processing) technology are still maturing, they have already proved their relevance. As the more tech-savvy and demanding generations evolve, so do the applications and opportunities for bots in banking.
Currently, virtual assistants combined with artificial intelligence (AI), NLP, and machine learning (ML) technologies can mimic human conversations to help financial companies fill the communication gaps between the business and its audience, as well as set up additional communication channels. By 2022, banks and other financial institutions can automate around 90 percent of client relations using conversational AI bots and so save more than $8 billion per year.
All these estimates are not so far-fetched as it may seem on the surface. Conversational AI in banking and financial services is already embraced by the Bank of America, HSBC, MasterCard, HDFC, and many others. Consequently, the value of the chatbot market is projected to hit $7.59 billion by 2024.
Depending on the way how a bot is programmed, we can distinguish two main categories of bots for financial services: simple (rule-based) and advanced (AI-driven).
This category of assistants is also called ‘scripted’ since they rely on particular keywords and commands. Developers build a decision tree hierarchy with a list of queries and relevant answers that the system utilizes while communicating with your customers. However, if a user asks a question without a single trigger, it will respond: “Sorry, I don’t understand,” and so affect user experience.
Talking to users, these smart assistants mainly depend on artificial intelligence, but can also leverage machine learning or NLP applications. ML and AI-driven chatbots learn autonomously based on the provided data and previous interactions. NLP in chatbot development is embraced to enable the system to analyze, comprehend, and prioritize queries based on their complexity or intent.
There’s no doubt that intelligent assistants have come a long way since the very first launch in 1966, and they have proven successful in healthcare, e-commerce, travel, and education industries. Meanwhile, opportunities for bots in financial services are nearly endless, and we believe that use cases existing today are just the beginning of a long-lasting and rewarding engagement. Today, analyzing the financial services sector, we can identify the following chatbot use cases as the most efficient ones:
In simple terms, chatbots are software programs built to promote communication; thus, you can make them as smart as your business needs them to be. It can be a simple rule-based tool or an intelligent assistant depending on the desired use cases and strategic objectives. Regardless of the selected type, you should consider the following elements of the chatbot development process:
These days, AI chatbots differ in approach, complexity, and use cases, thus providing business owners with even more options to choose from. What we know for sure is that these intelligent assistants are here to stay, and they will only get smarter over time. They have all the essential capabilities to smoothly navigate teams through large volumes of data, help them make wise decisions faster, and gain better predictability.
Ready to augment your in-house teams with the best AI chatbots? — TEAM International is at the forefront of the conversational revolution. It provides the world-leading banks and other financial institutions with extensive knowledge and experience to ensure seamless project launch and on-time delivery of fully-fledged AI solutions.
Don’t hesitate to contact us today and find out how TEAM can help you achieve the determined goals faster and more efficiently.