What is Driving the Demand for Conversational AI in Finance?

A new generation of conversational AI chatbots is sweeping the financial sector. As technology advances, it is surrendering to a more powerful force - Conversational AI. Conversational AI mimics human behaviour and provides businesses with sophisticated conversational capabilities and experiences. Increasingly, organisations are placing digital at the centre of their growth strategies, triggering the adoption of AI-based conversational interfaces within the financial services industry. Thus, AI is used by 37% of enterprises, with the rest planning to use it in the future. As AI and Natural Language Processing (NLP) capabilities have improved, along with the growing pool of client data, conversational AI implementations, such as Robo-advisors, chatbots, and virtual assistants, have grown in popularity.

A shift from Conventional to Conversational

Conversational AI, as a general idea, allows banks and financial institutions to promote direct discussions with their consumers via

• text,
• chat,
• voice messaging, or
• online apps.

BFSI Reshaping Customer Service with Chatbots

Several banks already offer mobile apps, and their use is growing rapidly. Mobile apps fulfil basic requirements of a user through its limited functionality and feature-set, that forces users to go to the website or call customer service to enquire about other needs. This is where Chatbots come into play. Chatbots assist customers in managing demands more quickly and efficiently, all while learning their behaviour. They learn a little more about their clients with each conversation, such as their

• likes,
• dislikes,
• plans, or
• changes in conditions.

This data is used to provide a tailored experience, such as recommending products or services that are most appropriate for the customer. Compared to human employees, conversational AI chatbot solutions better understand client requests and respond faster. Daily, banking and financial institutions manage a variety of complicated databases and hold sensitive customer information. This can sometimes become overwhelming. Chatbots make the process streamlined by automating everything rather than hiring extra people to handle the workload. This further allows financial institutions to access data on the system anytime without relying on their employees. It is critical to delivering responsive, quick, and efficient customer service. It takes precedence above price and product, with 86% of customers preferring to pay extra for a positive customer experience.

Benefits of Chatbots to Financial Institutions

Many chatbots that are regularly active on websites may not have the impact that organisations want. When firms want to implement conversational tools in their strategy, they should choose a platform with results-oriented templates. Implementing a conversational AI for finance has several advantages, including:

• High-level Customer Engagement

Banks frequently face constraints during opening hours. Even though some companies have 24-hour emergency support lines, others still have long wait times for agents to respond to the previous night's inquiries. Conversational AI chatbot solutions allow instant conversation in a pre-arranged manner, rather than just answering FAQs. These customised responses can resolve the issue immediately or provide some initial guidance while transferring the user's information to a team member for a follow-up call.

• Back-end Efficiency

A significant amount of financial services is conducted behind closed doors. Chatbot Q&As, for instance, generate a subset of data used in the preliminary qualification phases. As a result, resources are saved by devoting time to more critical tasks rather than those that a bot can handle. This outreach will provide the agents with a solid grasp of who they will be dealing with, their requirements, and how they can best help.

• Upselling Opportunities

Banks can use Conversational Banking to find upselling opportunities. For instance, when a consumer buys a flight ticket, it is a fantastic time to contact them and see if they also require travel insurance or currency services.

AI - A Phase of Revolution for the Financial Sector

Banks, insurance firms, and other financial organisations may now improve their CX globally thanks to the rise of no-code conversational tools. Through low-cost, easy-to-use chatbot builders, consumers can get 24/7 service, personalised product options, and speedy response times. Resource reallocation from a commercial standpoint means that employees can be assigned jobs that add real value while bots handle the initial engagement. Conversational AI chatbot solutions help businesses increase revenues by automating processes, personalising at scale, providing unique experiences, and shortening sales cycles. The Mtalkz conversational technology automates a variety of BFSI industry business use cases. Mtalkz powers BFSI firms to conduct faster onboarding and more secure transactions, manage their day-to-day operations, and give seamless customer service support.

Conversational AI in Finance – FAQs

What is a Chatbot? An AI based computer program that simulates human conversations, either via voice or text communication. What is Conversational AI? Conversational AI mimics human behaviour and provides businesses with sophisticated conversational capabilities and experiences. What is conversational AI for finance? Chatbots help banks in automating customer support by identifying enquiry intent, resolving enquiries with basic information, and escalating complex enquiries as needed. How is AI used in the Finance Industry? Here are some applications of AI in the finance and banking space: Fraud Detection & Risk Management, Personalised Banking, Provide Investment Insights, Account Activity Tracking, Process Automation. AI is increasingly being used by finance companies to reduce costs, save time, and add value to their clients. How to Improve Customer Experiences in Finance using conversational ai? Customers can get 24/7 service, personalised product options, and fast response times through low-cost, easy-to-use chatbot builders. A wide range of consumer-facing tasks can be handled with conversational AI chatbots.