6 Best Use Cases for Chatbots in Banking and Financial Services
Although chatbots have been around for a while, their popularity has grown exponentially in recent years. And it’s no wonder – chatbots offer several advantages over traditional customer service channels, such as phone and email. In comparison to human customer service representatives, chatbots are available 24/7, they never get tired, and they can handle an unlimited number of customer queries at the same time.
What’s more, chatbots are constantly getting smarter thanks to advances in artificial intelligence (AI) and natural language processing (NLP). As chatbots become more sophisticated, their potential use cases in various industries are also expanding.
One industry that is starting to harness the power of chatbots is banking.
How Are Chatbots Useful in Banking?
Chatbots can be used in many ways to promote products, services, and special offers from banks and financial services providers. They can also be used to provide customer support, answer frequently asked questions, and even process loan applications securely and efficiently whilst safeguarding customers’ data.
Chatbots are gaining a lot of traction within the banking industry and are proving their worth by producing tangible results for banks and financial institutions of all sizes. A study by Juniper estimates that by 2023, bank savings from chatbots will reach nearly $7.3 billion annually.
Let's take a look at some of the most common and effective use cases for chatbots in banking.
1. Transaction Notifications
One of the most popular chatbot features among banks is the ability to send notifications about account balances, upcoming payments, and other important transactions. This allows customers to stay on top of their finances and avoid any potential overdraft fees or late payment penalties.
Notifications can be sent via chatbot as soon as a transaction occurs, or on a set schedule (e.g. daily, weekly, etc.). Customers can also choose to receive notifications in the form of push notifications, text messages, or even email.
This chatbot feature is beneficial for both banks and customers alike - banks can reduce the number of customer service calls they receive, and customers can avoid costly fees and save time by not having to log into their online banking portal or mobile app to check their account balance.
2. Security Checks
Security and fraud prevention are always top priorities for banks and financial services providers. Chatbots can play a vital role in helping to prevent fraudulent activity by verifying customer identities and conducting security checks before account changes are made or loans are processed.
For example, chatbots can be used to verify a customer’s identity when they log into their online banking portal or mobile app by initiating multi-factor authentication checks and issuing OTPs. This feature can help to prevent account takeover fraud, in which criminals gain access to a customer’s online banking account and conduct fraudulent transactions. It also gives customers extra peace of mind knowing that the bank is looking after their data security.
This chatbot feature is not only convenient for customers, but it also helps banks to protect against fraud and save time and money that would otherwise be spent on investigating fraudulent activity.
3. Self-Service Requests
Another great way chatbots are being used in banking is to allow customers to complete self-service requests without having to wait on hold or talk to a human representative.
For example, chatbots can be used to help customers check their account balances, transfer money between accounts, pay bills, and even report lost or stolen debit/credit cards. chatbots can also provide account holders with their credit scores and help them dispute errors on their credit reports.
4. Nearest Branch/ATM Finder
A great use case that is popular among banking customers is the ability to find the nearest branch or ATM. This is a particularly useful feature for people who are traveling or those who have moved to a new city and are not familiar with the area.
To use this chatbot feature, all your customer has to do is type in a location or address and the chatbot will provide them with a list of the nearest branches or ATMs. if the chatbot is configured to read location data, it can automatically provide the customer with the nearest location - making the customer’s experience even more convenient.
This is a great way to promote your brick-and-mortar locations and get people into your branches where they can open new accounts, apply for loans, or speak to someone in person about their banking needs.
5. Payment Reminders
Sometimes, people simply forget to pay their bills on time. This is another area where chatbots can help.
By setting up automatic payment reminders, chatbots can make bill-paying easier. No more late fees or worrying about mounting debt - chatbots can help your customers stay on top of their finances and avoid costly mistakes.
6. Loan Applications
Chatbots can also be used to apply for loans. This feature allows customers to apply for a loan without having to fill out a long and complicated application.
Instead, customers can chat with the chatbot and answer a few simple questions. The bot will then use this information to pre-fill the loan application and submit it on the customer’s behalf. This is a feature that can save customers a lot of time and frustration.
Customers will always value human interaction and there will always be a time and place for it. But chatbots are quickly becoming a valuable customer service tool that can save banks time and money, while also providing customers with the convenience they crave.
It won't be long until chatbots advance even further and can provide even more complex customer service tasks. For now, they are the perfect tool to free your agent's time for more complex customer service tasks and sales, while also providing your customers with the 24/7 support they need.
Additionally, using chatbots in combination with other customer service tools, such as live chat can provide a seamless and efficient customer service experience that will make your bank stand out from the competition.