Financial firms are transforming steadily and adopting the advancement of digitalization to operate and interact with customers. The line between human and machine support has become blurred due to the refined services these conversational chatbots offer. AI in the finance industry utilizes chatbots to fulfill the demand of this new age where customers expect speed with accuracy and security all under one umbrella. Chatbots have helped eliminate the long queues from the life of the customer and the hectic schedule in the life of finance industry employees.
Conversational AI has formed speech-based assistants that help facilitate a strong engagement platform for users. The technologies such as NLP and ML are integrated into a single platform which is customized as per the specific requirement. As per the survey, the global conversational AI market size was recorded to be $6.8 billion by 2021. It is estimated to grow by 2026 with a market value of $18.4 billion at a CAGR of 21.8%. (SOURCE)Here through this blog, we will discuss how AI-driven chatbot is helping the finance industry achieve new heights.
Why Finance AI Chatbot is Required?
The pandemic of COVID-19 acted as a catalyst for digitalization. During and post-pandemic, the significance of staying connected with the customers and offering them the required services was known by the finance industry companies. This industry faced a challenge to offer 24*7 speed and accurate assistance to the customer and the website visitors. With the conversational AI tool, the required solution was delivered to the businesses, and it helped them to enhance their customer support effectively. The growing use of AI and NLP technologies has empowered financial institutions' employees and offered users smart control over their financial transactions. Here we have jotted down major reasons that will convey the significance of chatbots driven by AI in fintech market.
Delivers the Information
The adoption of AI-driven chatbots by financial institutions has smoothened the process of sharing information with users. Finance-related information is often considered important as it includes the transactional data of the user. With a chatbot's help, users can access the required information anytime they want.
Queries are Answered
Undoubtedly financial services include complicated procedure which is not easily understandable. It creates queries for the users who need assistance with the same. Offering every individual customer, a customized and accurate answer as per their requirement is something that the conversation AI chatbot does. All the queries or doubts that the users have can be cleared once they interact with the chatbot.
The above two reasons would have already given you an idea about how conversational AI in finance helps in saving time. The employees are empowered by these AI-driven chatbots as lengthy processes can be automated. Implementing chatbots saves time and extra effort, and still, the users have high satisfaction. Customer support services are enhanced, and the employees can use their time in other areas to contribute to the growth of the business.
Benefits of Having Chatbot Driven by AI in Finance Industry
AI-driven chatbots have been accepted by the financial sector gradually, as initially, a lack of awareness about conversational AI solutions was the reason behind the low adoption rate. But now, the acceptance of AI-driven chatbot is increasing across different sections within financial institutions as offers the best features along with productive engagement models. Nothing can be integrated within a business strategy until its benefit from every aspect is known. So, scroll down to some of the major perks that finance AI chatbots offer.
Offer Personalize Banking Experience
The hurdles for financial institutions' growth are a delay in services and a lack of personalization. These two are the biggest issues that customers face, but things have changed for the better. Financial institutions like banks are choosing AI-driven chatbots to offer their customers a personalized experience. These bots can reduce the time required to provide any service to the users, mainly within the paperwork. These conversational AI tools are the best bridge between customers and the company. Every user can get a personalized form of service per their requirement. Waiting in long queues and visiting the banks regularly are no more required.
Enhances Employee Productivity
The perks of finance AI chatbots do not just revolve around offering the best customer experience, but it's more than that. The employees of financial institutions are empowered as this tool helps save time. The automated response and assistance that the chatbots offer to the users save employees from a repetitive and monotonous task. It increases their efficiency, and they become more productive, which ultimately helps the firm to serve customers in a better way. The AI-driven chatbots automate many tasks, such as maintaining a payroll record, assisting users in accessing personal details, updating contact information, and much more.
Improves Customer Service
The competition within business in almost any industry is high as everyone is now adopting the advanced technology to enhance their services. As per survey any user visiting your website will not thin twice and wait if they are not assisted well on time. The financial institutions are well aware of this fact and this is the reason that the significance of customer service increased. The financial institutions hire different fintech software development services provider to improve the overall performance of the website or the application. AI-driven chatbots are also adopted as they offer the advantage of being interactive with the users and provide them with the required guidance with their queries.
Applications of Finance AI Chatbot within Crucial Tasks
In this era, the expectation of users is also growing, and there is no doubt that it is increasing the demand for more stable and advanced technological solutions within financial institutions. To keep up with these expectations, businesses are adopting chatbots to offer better financial services to their customers. Financial institutions should leverage AI development services to add the power of AI-driven technologies and enhance the efficiency of their services. With the help of artificial intelligence, a significant value is added to the user's experience by reducing lengthy processes and managing the operational budget. It is possible because AI-driven chatbot is being incorporated within different financial processes, such as:
Increasing Sales Conversion
AI in fintech market has emerged as the advanced solution for multiple challenges. AI-driven chatbots are considered the new marketing channel due to their effectiveness in assisting the potential customer of the firm and offering a quality lead. Yes, chatbots can be used as lead generators and also sale conversions. It is very common that when your website has any visitor, they would require quick, quality assistance with their requirements. The interactive chatbots can greet and guide them through the different products and services your business offers. This directs the customers toward the sales funnel, and thus a relevant sales lead is generated, which the team can further nurture.
Offering Fraud Detection
Data privacy is one of the biggest concerns every financial institution has to be concerned about. No matter which technology they use or how advanced the firm becomes, data privacy has to be a priority cause any fraudulent activity can be the reason for great damage to both the customer and the financial firm. There are different reasons that can lead to these frauds, but one of the major loopholes detected as the cause was human error. Multiple processes are repetitive and can be lengthy, and when handled manually, the chances of errors increase. With the adoption of AI-driven chatbots, automation replaces these time-consuming processes and eliminates the chances of any error or fraudulent activity.
Insurance Claim Management
Financial firms dealing with insurance services face challenges in settling their claims. Mostly they have a long, tiring process for claim settlement which is not at all appreciated by the customers. But now, the time is changing, and the AI-powered chatbots customized to offer claim-related assistance have offered insurance firms an advanced solution. The claim handling process has become fast and accurate with the help of these chatbots; thus, customers and employees both have a happy time with claims now. AI in finance have changed many such traditional methods of working and enhanced the entire business strategy for multiple financial institutions.
AI-driven chatbots have radically changed the financial industry in multiple ways and are serving various purposes. The chatbot has a significant role, from helping in generating quality leads to providing the best customer service, managing operational costs, and much more within this industry. Your website visitors can easily become potential customers if assisted well. There is a plethora of financial organizations where this tool of conversational AI has been preferred to guide customers through every vital process of the financial services they require. Undoubtedly, AI in finance will drive the entire industry in the coming time by integrating with the technologies like NLP and ML. You can always make the right decision in choosing AI to strengthen customer interaction and many other financial services for upgrading your business.