In recent years, conversational AI has become a game-changer in the banking and financial services industry. This technology uses machine learning algorithms to enable natural language conversations between people and machines. By doing so, conversational AI can transform how banks communicate with their customers, offering personalized and convenient services that enhance the overall banking experience.
At the current moment, more than 80% of banking businesses use conversational AI for engaging with the customers. This high number indicates the importance of AI for your banking business.
In this article, we will explore the five practical use-cases of conversational AI in banking. By the end of the article, you will understand the need to deploy conversational AI for your business needs.
5 use cases of conversational AI in banking
In this section, we will explore the five practical use cases for conversational AI in banking. This will help you understand the role of conversational AI for your banking business.
Personalized Financial Advice
Conversational AI can help customers with financial planning by generating tailored financial advice based on their behaviours and goals. Banks can use this technology to recommend investment opportunities and retirement plans that align with a customer’s risk tolerance and investment preferences. Additionally, customers can receive regular updates on their investment performance through their preferred communication channels, such as proactive SMS or email notifications.
Generative AI for banking
While conversational AI has already made a big difference, generative AI is taking things even further in the banking sector. By combining deep learning with natural language processing (NLP), generative AI helps virtual assistants understand and respond to customer questions in a more personal and flexible way.
In banking, generative AI can be used for many purposes. One important application is creating personalized product recommendations based on a customer’s spending habits and preferences. For instance, if a customer frequently spends on travel and dining, generative AI can suggest credit card offers and loyalty programs that fit those interests, making the banking experience more relevant and helpful.
Transactional Assistance
AI chatbots can handle a variety of transactional tasks, including checking account balances, transferring funds, and paying bills. They can also send real-time alerts, notifying customers when payments are due or when credit limits are exceeded. This feature helps ensure that customers stay on top of their finances and don’t miss important deadlines.
Product Recommendations
By analyzing customers’ financial behaviors’ and purchasing patterns, AI can offer personalized product recommendations. For example, a customer who often uses their credit card for online shopping might receive suggestions for cards that provide rewards or cashback on those purchases. Similarly, customers who frequently transfer funds to family members may be recommended checking accounts that offer free intra-bank transfers.
Enhanced Customer Service
Conversational AI enhances customer service by providing 24/7 support for queries and complaints. AI-powered chatbots can efficiently handle a wide range of questions, such as inquiries about account balances, transaction history, and interest rates. They can also escalate more complex issues to human agents when necessary, ensuring that customers receive timely and accurate assistance.
Conclusion
Conversational AI has become a game-changer in the banking and financial services industry, providing innovative ways to enhance customer experience and improve operational efficiency. Its rapid growth in the banking sector is fuelled by rising customer demand for personalized, convenient services, alongside the industry’s need to save costs and boost efficiency.
We at Kenyt.AI provide you with typical conversational AI platforms that match your business needs. Contact our sales team today and get started.
Frequently Asked Questions
Conversational AI enhances customer experience by providing 24/7 support, automating routine inquiries, and reducing wait times. It can also streamline operations by handling high volumes of customer interactions, allowing human agents to focus on more complex tasks.
Conversational AI can guide customers through the loan application process by answering questions, collecting necessary documents, and providing real-time updates on application status. This reduces the need for manual intervention and speeds up the overall process.
Conversational AI can assist in fraud detection by monitoring transactions and alerting customers about suspicious activities through chat interfaces. It can also validate customer identity by asking security questions or sending verification codes, helping to prevent unauthorized transactions.
Yes, conversational AI can analyse spending patterns and provide personalized budgeting advice, helping customers manage their finances more effectively. By integrating with banking apps, it can send alerts, reminders, and insights, empowering users to make informed financial decisions.
Aaron Jebin is an enthusiastic SAAS technical content writer interested in writing for new and existing technologies, platforms, and tools. With an experience of over 4 years in technical writing, he is keenly focused on developing articles to provide readers with complete solutions to the common problems that arise in the everyday workplace. His writing mostly focused on team building, work ethics, business analysis, project management, automation, AI, customer and employee engagement methodologies. He has an interest in baking cakes and making stained glass art. He is currently honing his drifting skills.
