One-way messaging used to work very well in the banking sector, but digital channels have now evolved towards conversations, as customers today demand more from banks. Expectations for 24/7 availability, seamless and personalized services are on the rise. To maintain competitivity in the banking sector, adopting AI technologies is essential.
“76% of bank executives believe that within 3 years, banks will deploy conversational AI as priority method for interacting with customers” [1]
The demand for a dynamic, digital customer experience has pushed conversational banking into the forefront of FinTech industry trends. Its’ elegant combination of AI and human-like assistance allows banks to strike the balance for them and their customers.
So what is conversational banking? What does banking experience of the future will look like? And what are the benefits gained for both banks and users?
The name says it all!
Conversational banking is an in-app, AI-powered, voice commanded, messaging technology that creates a dynamic self-service channel for customers to leverage when they have questions or need assistance or advice.
Conversational banking allows more personalized and accustomed services to the extent that banks can anticipate client needs and therefore provide highly customized services at the right moment.
It’s a level of personalized service that the traditional, digital, one-way messaging chatbots currently used, can’t surpass.
An increasingly human-like format!
Conversational banking will offer information and experiences that are:[2]
INTELLIGENT
Recommending actions, anticipating and automating key decisions or tasks.
PERSONALIZED
Relevant, timely and based on a detailed understanding of customers’ behavior, interests and context.
OMNICHANNEL
Seamlessly spanning the physical and online contexts across multiple devices and channels and delivering a consistent experience.
BLENDED
Banking capabilities mixed with relevant products and services beyond banking.
This method of human-like digital experience reduces the number of physical touchpoints a customer must make to complete a goal, as well as bridging the gap between convenience, availability and personalized customer service.
When successfully achieved, this benefits both the bank and the user.
Banking beyond banking!
In addition to seamless, 24/7 customized services, Conversational banking can integrate with non-banking apps and notice the spending of a user and suggests, for example, nearby cafes or vegan shops while allowing face recognition for frictionless payments. It will also offer discounts or promotions for certain activities, along with money management advice, end-of-day report of activity, savings and investment recommendations.
A millennial in the early stages of their career and a multi-millionaire will get different responses. So each individual user will have their own personalized response. All clients have a personalized banker with a broad view of their finances that incorporates their personal life and provides the best financial advice to them.
Banks will not only be providing a better customer experience but will also be enabling huge savings on customer service costs and gaining more revenues through increased personalization of services. Banks will see an increase in customer engagement metrics and a reduction in all errors. Furthermore, Banks will be able to innovate rapidly, launching new features in days or weeks instead of months.
References:
[1] Global survey of senior banking executives conducted by The Economist Intelligence Unit
[2] https://getstream.io/blog/conversational-banking/