In today’s fast-paced digital era, banks are constantly seeking innovative ways to enhance customer service and streamline operational efficiency. One solution that is rapidly gaining momentum in this space is Conversational AI. By leveraging advanced natural language processing and machine learning algorithms, Conversational AI is reshaping the banking landscape, offering a seamless and personalised experience for customers while optimising internal processes. It bridges gaps between humans and machines by facilitating interactions in human like manner. With recent advancement in large language models’ interactions between human and machines are becoming meaningful, intent driven and personalised.
Imagine a scenario where customers can effortlessly interact with their bank using natural language commands, like chatting with a friend or bank’s agent in face-to-face manner, this will provide customer human-touch in all the banking services. Take a second scenario, where bank’s agent can retrieve right information from vast knowledge repository without asking customer to hold and directing him to the right action while having chat itself. All these make banking services effective and efficient. This is the essence of banking based on Conversational AI — a technology that enables customers to perform a wide range of banking tasks through intuitive human-like conversations. Beyond that, Conversational AI also encompasses a wide array of use cases that revolutionise customer interaction and streamline operational processes, knowledge management and fraud detection.
While it comes to adoption of this disrupting technology, banks are early among adopters and top users to keep their competitive advantage and prepare to face future challenges. FinTech companies are also getting included into bank’s ecosystem and helping them to discover potential of AI technology. Moreover, regulations on many countries are becoming favourable towards these new technologies and encouraging banks to use it effectively.
Customer experience in digital world
Banking services are becoming part of day-to-day life of customers, they are using those in their fast-paced life. They need services which are personalised and effective, they also need right services to be offered at right time. All these are forcing bank to better understanding of spending pattern and behavioural data of customers to position their products and services effectively. AI can integrate and analyse all those types of data and provide 360-view of every customer, allowing banks to anticipate customer’s need and create personalised offer based on behaviour.
By analysing large dataset and understanding intent and sentiment to create human-touch, Conversational AI works as financial advisor more effectively. Not just as robo-advisor, it works effectively with human to deliver in-depth and value-added services to customers.
Monitor suspicious activities and fraudulent transactions
Digital world has brought convenience and accuracy for the customers, along with those it has invited fraudulent activities, fictitious transaction as well. Conversational AI helps in recognising patterns of fraudulent activities in a conversation or transaction. By analysing conversations or transactions content, sentiment, context etc it can identify suspicious activities and provide immediate alert to InfoSec team or customer. This monitoring and response can be possible 24/7. For example, if a customer who generally does small transactions and suddenly initiate a large transfer to a unrelated beneficiary, Conversational AI can raise an alert immediately.
Phishing attacks are also posing great threats to both banks and customers. Through its intelligent analysis of messages, emails and public domain information, Conversational AI can detect threats. By providing proactive warning about phishing attempts, this technology can educate customers and make them more resilient.
Streamlining operational processes
In digital world customers are at centre, and they look for best services and experience in efficient ways while using banking applications. They need faster and effective ways of solving their resolution and completion of transactions in omni-channel mode. In this challenging proposition, banks need to provide better services at cost-efficient ways. Conversational AI based contact centre, helps bank to understand customer resolution better by conducting need and sentiment analysis. Knowledge management helps bank agents to resolve customer queries and reduce waiting time. Even training and development are becoming more effective.
On the other hand, voice-based assistance is getting prominence with advancement of Natural Language Processing (NLP). Such voice-based chatbot helps customer in wide range of services like report lost/stolen cards, card details enquiry, account balance check, beneficiary payments, learn about other services. By using voice authentication, payments are also getting processed. Thus, Conversational AI is helping banks to streamline operational processes and provide efficient services to customers.
In essence, Conversational AI is bringing a revolutionary shift in banking, offering unparalleled efficiency and personalised interactions. But as banks embrace this transformative technology, they are prioritising the security of sensitive customer data. With robust encryption and authentication mechanisms customer data integrity and confidentiality are getting ensured. Thus, confirming trust on Conversational AI systems to handle their financial information securely. With new innovations in artificial intelligence, Conversational AI is waiting for major leap to create more customer centric business propositions for banks.
About The Author
Supratik has more than 22 years of experience in the banking industry. Throughout his career, he has primarily served as a Product Manager in multinational banks and financial institutions. His areas of expertise include Digital Banking, Transactional Banking, and Artificial Intelligence. At Maveric Systems, he leverages his extensive experience to drive excellence in Product Management and Sales Engineering, ensuring the delivery of innovative solutions and unparalleled service.
Orginally Published in ET Edge Insights
