Recent years have witnessed tremendous developments in the financial sector. Financial technology or FinTech, has been playing a critical role in providing next-level customer service to users via the usage of AI-powered Chatbots. Intended to assist customers with their requests in the most dynamic way possible, Chatbots today, also act as a guiding channel that can help businesses better understand the needs of their customers. According to a Juniper Study, the usage of chatbots will end up saving banks up to $7.3 billion worldwide by 2023, which represents a time saving of 862 million hours, or almost half a million years of work.
The functions of a Chatbot are virtually endless. Some of the helpful applications include: automated and personalised customer support, 24/7 access, ease of usage, cost savings, data collection information, audience segmentation, feedback collection, new account generation, and many more
To understand the Role of an AI Chatbot in the FinTech sector better, let’s take a look at a few important use cases:
- Omni-Channel Banking Capabilities: With the advent of the digital era, modern-day customers do not conform to the arcade patterns of usage and expectations that were earlier associated with traditional finance sectors. As customers today want to be able to access services whenever and whenever, AI Chatbots are able to help the FinTech sector ensure that, by reaching and engaging with the customers over emails, text messages, social media platforms, etc.
- Online Payment Enablement: Today, there are innumerable means available for making payments, irrespective of what one might be paying for. Given the abundance of options, there is always some scope for unnecessary complexity, when it comes to providing customers with the exact payment option that they require. Chatbots help in simplifying this process greatly, by helping customers find and make payments according to their methods of preference. New-age Chatbots can also be linked to bank accounts, digital wallets, etc. easing out the process for customers significantly.
- Garnering Insights: Much like any other sector, the future of the FinTech industry too is quite dependent on Data. AI Chatbots aid enterprises in collecting and processing massive volumes of data regarding the needs of customers, transaction history, requirements etc. With the help of the insights generated from the information garnered, FinTech companies can easily drive sales for their venture. Hence, with the help of AI Chatbots, certain complex decision-making can be largely simplified.
- Enhanced Customer Service: Since the banking and finance sector is extremely competitive, there has to be a tremendous amount of focus on customer service as well. AI Chatbots, help in this regard by aiding companies in gathering immensely valuable data about customers, via Chatbot interactions, all the while humanizing the tech-based system. The information gathered is then leveraged by human executives for strategizing and creating tailored services that will suit the customers better.
- Lead Generation: With older methods of lead generation like cold-emailing having now become obsolete, AI Chatbots are in line with the new era of automation. Based on the insights gathered regarding customers’ spending history, choices, requirements etc., FinTech companies can identify target customers that are on the lookout for loans, investment options or any other financial services. Additionally, there is a benefit of reduction in junk leads, due to the filtering systems employed by bots. In fact, the reach of AI Chatbots is so profound that companies have witnessed a record increase of 600% in targeted lead generation, post their inclusion.
- Ensuring Data Compliance: With the growing concerns about data security, governments across the hello have introduced various stringent regulations that can help in protecting users. Ensuring compliance with the laws and regulations that exist today, can be a challenging process, but it is something that Chatbots can help with. By recording required pieces of information while interacting with customers, that comply with appropriate laws, for example, drawing up records for a specific customer’s consent, Chatbots can help ensure data compliance in required circumstances.
As Artificial Intelligence, continues to create capabilities for the FinTech industry, it is obvious that customer expectations will follow suit. The implementation of AI Chatbots enables FinTech companies in building customer relationships, all the while increasing customer loyalty and satisfaction. The Indian FinTech market is estimated to become the third largest market in the world by the year 2025. Chatbots hence, are expected to empower customer services, help financial institutions in terms of data collection, long-term cost savings and offer insights into consumers’ behaviour.
Thus by enabling businesses in pursuing relevant aspects digitally for promoting new business opportunities Chatbots can offer them a competitive advantage in the market with potential customers.
The author is Vineet Tyagi, Global CTO, Biz2X