Recently, the FinTech sector is seeing a never-ending enormous growth. Moreover, it is re-structuring itself in the way customers want to mold it. Is there a factor fuelling its growth? Yes, it is an AI chatbots in FinTech!
What is so special about it?
Basically, a chatbot is an AI-powered software solution that offers digital assistance via text-to-speech through messaging apps, and even websites. What’s more, they are designed to copy human skills and interpret them to offer a prompt solution.
Besides, the last three-four years have been quite phenomenal for chatbots and FinTech App Development. Moreover, there needs to arise when automation of a large volume of repetitive tasks becomes crucial. In particular, managing customer support become an essential aspect.
On the other side, the rise of ‘Gen Z’ has been the main reason behind the significant development of FinTech chatbots. Why? It’s because of giving major preference to the self-service approach (including chatting) over e-mails and voice calls.
Before proceeding further, it is essential to understand AI. In its simplest form, AI is a combination of a robust database with computer science for successful problem-solving. It found its application in games, self-driving future care, and data analytics.
Moreover, Machine Learning (ML) is a subset of AI that take along algorithms, data, and statistical model to perform some specific task. Even more, there is a special connection between AI and data analytics.
What is it? They are aligned with each other because AI brings out the capability of data analytics to deliver better (and deeper) business insights that even human analytics are unable to do. It is what chatbots do which will be described in a later section
Now as mentioned before, the inclusion and development of AI-based chatbot services are proving to be quite successful. As lately, AI has shown its caliber in replacing financial service costs by $1 trillion.
Likewise, several marketing experts from Gartner have enthusiastically predicted that by 2022, more than four-fifth of consumers will manage their relationship with brands without interruption from humans.
Thus, the given topic will closely discuss the role of AI-based chatbots for FinTech businesses. Further, it will also evaluate how empowering the FinTech sector is now filled with the complete domination of chatbots. Let’s see!
AI chatbots in FinTech – What is Conversational AI, and Why do Financial Brands Must Give it Proper Attention?
In recent times, several financial service providers are showing their eagerness in implementing Conversational AI. Why so much pro-activeness? It is because of three reasons:
- Offering a powerful cost-saving option
- Effective customer engagement
- Swiftly addressing consumer’s needs
Now, a question might be puzzling the readers
“Exactly, what is Conversational AI?’’
In essence, it is a technology that emphasized the full automation of communication so to create a personalized customer experience on a grand scale. It comes with several interfaces that include: messaging app, voice assistant, and chatbot.
Out of all these, AI chatbot is getting wider acceptance in the digital world. In addition, businesses can utilize Conversational AI to fully automate several touch-points of the customers such as:
- Website and applications
- Messaging platforms (such as WhatsApp)
- Social media platforms (such as Twitter and Facebook)
- Voice assistants (such as Amazon Alexa)
Now, a question might pop up in the minds of the readers:
“How do chatbots, with Conversational AI, assist in offering a cutting-edge to the FinTech sector?” The answer lies in the below section:
What Role do Chatbots Play in Revolutionizing Fintech Sector?
To begin with; the FinTech world is watching several technologies (AI and ML) that are changing the way of conducting financial business. However, there is one software tool that is posing as a boon for the FinTech sector:
It is a chatbot.
Well, they offer two valuable things to the FinTech industry:
- Better customer experiences
- Best business results
Adding to it; some essential use cases will help you to get a good understanding of the importance of AI chatbots.
Moreover, they also help in creating a perfect platform for FinTech companies to pitch their services precisely:
Financial Inclusion and Market Expansion through Voice AI
From the reports of Gartner, 80% of the consumer apps by 2023 shall be powered by the ‘voice-first’ doctrine. For instance, financial enterprises such as banks rely more on digitalizing their services through Conversational AI for deepening engagement with customers.
Not to mention, AI-based chatbots and voice bots are boosting customer experience positively through:
- Use of hyper-personalization
- Conversing in the preferred language of customers
- Offering familiarity by comforting them with complex banking services
What’s more, voice-enabled AI chatbots can successfully handle online payments, credit card activations, resetting passwords, and many others with quite ease.
Greater Connection with Customers through Automation
Indeed, maintaining a close relationship with customers assists you in enhancing cross-sell. In fact, the presence of voice automated customer support (that too with 24*7 availability) showcases that you are giving full attention to the customers’ queries.
For example, banking services are mostly siloed which renders them unsuitable for banking services nearby. Likewise, voice automation AI-chatbot helps in meeting daily needs of banking services such as:
- Money transfer
- Adding/updating beneficiaries
- Saving and investment
Alternatively, financial services are also open for disbursal of loans through a feature called the AI-based CX platform. Firstly, it determines the eligibility criteria of the customers. Afterward, it provides hassle-free disbursal, with effective tracking of EMIs.
Availability of Smarter Contact Centre
Several financial service providers heavily invest in developing large contact centers that effectively handle inbound customer queries. However, they fail to function properly when they face repetitive customer queries.
To solve it, the inclusion of voice-enabled chatbots handles repetitive tasks efficiently. Adding to it, they help personnel to focus more on solving critical tasks. In this way, there is the optimization of the contact center.
Similarly, they assure frictionless banking with greater engagement with customers on a contextual basis. All of this results in a high rate of satisfaction among the customers with significant improvement in their experience level.
Alternatively, chatbots assist FinTech institutions to pave way for an omnichannel approach during competitive times. Besides, the involvement of Conversational AI offers seamless customer engagement services that help FinTech companies to stay relevant successfully.
Data Compliance is an Integral Part of Chatbots
Of late, there is a growing concern about data security that has compelled governments across the world to bring out the strictest regulations to protect consumers. Now, maintaining compliance with such stringent laws is a challenging task. Thankfully, chatbots are there to comply with such laws in the most appropriate way.
For instance, the European Union (EU) leads with General Data Protection Regulation (GDPR), and the US leads with California Consumer Privacy Act (CCPA). They are simple rules that bring hi-tech security features to protect personal data that is unavailable in previous rules.
What do they want from service providers? Simply; an assurance of getting mutual consent from customers and then storing their data! Neglecting them could lead you to face severe consequences.
Nevertheless, there is no need to worry. It’s because:
Chatbots arrive with automation and handle the financial data of the customers consistently. How?
Merely speaking, the development of the FinTech chatbot app offers all crucial information to the workers via Q&A format. Just like it, internal chatbots have a single information source that legal teams can verify to ensure whether it is accurate or not. So, a beneficial aspect for companies growing at a faster pace.
Additionally, laws such as CCPA offers several features like:
- Right to the opt-out sale of personal info
- Legal protection for minors
- Right to non-discrimination based on prices or services
After going through the terminology of chatbots and Conversational AI and finding out their importance in the FinTech world, it is time to go through last, but not least, another crucial discussion: Chatbots VS Live Chats.
Why Are Chatbots Preferred Over Live Communications By Users?
When incorporating a chat solution, two questions come to the mind of the users:
- Should you incorporate either human-powered or automation AI-chatbot?
- Should you either bring them together or keep them separate?
Indeed, it is not an easy answer to find out. Still, one has to give proof to demonstrate the power of AI chatbots in the world of FinTech.
To find out how chatbots empower over live chat, you have to go through some of their advantages to fish out the credibility of an AI-based system.
Disclaimer: Live chats and AI chatbots both, are crucial at some stages, and one has to take a balanced side by incorporating two of them.
To improve the expected rate among the customers, response time should remain at a high level. Supporting it; a recent survey has pointed out that almost 60% of consumers readily buy when brands mitigate their doubt within a minute.
Moreover, there is no room for delayed response time as your business will succeed when customers are happy. Though live communication will be appealing in such a scenario, implementing chatbots will be more beneficial. Why? Let’s find out:
As a matter of fact, about 20% of the customers believe chatbots as the most proficient way to contact a FinTech enterprise. Likewise, they come with several benefits, such as:
- Chatbots have easy availability (24*7) to offer immediate answers to simple queries, and even collect basic customer info accurately
- The Chatbots can assist customers by initiating proactive interactions related to the selection of specific products and pricing
- Chatbots can replace the support team (when they are busy or unavailable) to actively engage with the customers
So, what are the key takeaways? There are many like:
- If a business wants a quick response (within 30 seconds), then a chatbot is an ideal fit for them
- If handling repetitive and complex queries become difficult, chatbots are perfect solutions
To tell the truth; those business decisions that follow cost-effective procedures, help their enterprises in enhancing their revenue at lower costs.
Although live chats are an affordable communication channel that delivers better ROI, still, it is far behind what chatbots could save for an enterprise.
Accordingly, a report from Juniper Research points out that by the year 2022, chatbots will assist businesses in saving a whopping $8 billion per year. How is it possible? To begin with; AI chatbots come with several solutions:
- Easy scalability by meeting endless respects efficiently, even during peak hours
- All repetitive tasks get fully automated to keep customers actively engaged
So, what is the outcome? It is:
Chatbots are ideal for a start-up where cost is the key factor. There will be no need to hire resources as automation software will do all the work.
Management of conversations with scalable support with live chat is easy, but it also comes with numerous challenges:
- Costs related to salaries and infrastructure
- Hiring more resources
- Additional expenses (cost and time) due to training new employees
Nonetheless, AI chatbot is there to overcome all of them. What’s more, they will help in scaling the conversations to offer quick solutions to the customers. Not only that, but it also improves productivity without extra costs (and also resources).
Hence, the outcomes are:
- SMEs can get the support of chatbots for easy scalability
- Endless conversion is possible to keep both business and customers satisfied
Even though both chatbots and live chat focus on offering a unique customer experience, still meeting customer expectations is the forte of AI-based technology.
At times, customers become your brand advocate if they are served well. And it is possible with chatbots. Here, we will show how the given Conversational AI technology assists in improving satisfaction rate among customers:
- Available round the clock to deliver instant support
- Offer basic information about products and purchase-related information
- Simplifies complex queries to deliver support in humanized form
So, what is the major outcome? It is the sparkling of chatbots like a diamond in improving the face value of the brand! Eventually, it will enhance better customer engagement and offer seamless customer service.
Thereafter, it is clear that adopting AI chatbots in fintech industry is surely going to win more customers in the fold of FinTech companies. In addition, implementing the benefits of chatbots will also compel old customers to remain with the organization and avail of financial services in the best possible way.
To Sum Up
In short, the financial sector is booming with FinTech services that develop better and new financial services. Fintech app development is moreover, combined with Conversational AI has made it a brighter prospect for every industry functioning in the financial sector.
Consequently, Conversational AI chatbot has done notable wonders:
- Reduction in operational cost
- Presence of omnichannel digital platform
Accordingly, the FinTech sector has found a truly indispensable customer service tool in the form of an AI chatbot. Therefore, it is an investment for today and also in the future.
When a company chooses a custom software solutions provider for the development of chatbots or a Fintech application, outsourcing development has been the trend in the fintech industry. Cost savings, higher productivity, decreased risk, and increased security is all advantages of outsourcing software development.
Emorphis Technologies is an AI chatbots development and Fintech app development service provider that caters to the financial needs of its customer. If you want to implement FinTech chatbots in your business; then contact us to improve communication with your clients, and get noteworthy financial results.