A little over 4 minutes read

We’ve all grown used to Siri, S Voice, Alexa and Google Home. Now, there are also digital assistants to help us bank. Financial chatbots, the newest trend in the realm of technology, are AI driven conversational software that’s programmed to carry out tasks and fulfill information requests via chat interface (typically via Facebook Messenger, Slack, Skype). Thanks to the latest advancements in ML, they’re becoming increasingly more capable of interpreting intent behind clients’ words and, overall, of mimicking human interactions.

Chatbots allow to transfer funds, set up regular payments, check balances, discover spending habits, obtain financial stats and general information quickly, without having to call or by any means contact the company; in a manner of informal chat talk.

They pull in information from databases and simplify it, upon users’ requests, making financial matters comprehensible. In the nearest future, companies expect to turn them into highly advanced financial advisors that, besides serving as responsive encyclopedias, help people improve their spending habits.

We’re very excited about them and you should be too for the reasons we’ll describe next.

What good can a Chatbot do for your company?

#1 It reduces the need for costly services.

ChatbotsSupport services, or rather parts of them, are very likely to be replaced by Chatbots.

Banks spend fortunes to maintain their call centers and support departments, while most requests directed to them could be as well resolved by an inelaborate, “talkative” application, which on top of that, would work 24/7 and always respond immediately.

A typical cost of a phone transaction for a company is $2.50, while the price of a digital one is only around $0,17. Implementation of chatbots therefore would reduce spendings by nearly fourteen times, which sounds almost fishy and yet is completely attainable.

#2 It leverages the powers of messaging apps (Those being simplicity and vast exposure).

ChatbotsContacting banks, or any financial firms, on the web used to be associated with painful authorization sequences, difficult interfaces and a need to re-enter personal data multiple times. Chatbots make these nuisances vanish.

Familiar system that most people already use now allows handling financial matters. No longer it’s needed to type credentials over and over again to complete transactions; clients, who are already logged into their messaging apps need not do anything else to use chatbots. So, who would choose other means of dealing with money with such a tool at their disposal?

Efficiency and ease of use has always translated into loyalty, led to public praises of services among clients, and thus drove higher engagement for companies. Chatbots’ are aimed at providing these two features precisely.

#3 It could accumulate customers’ data in unprecedented amounts

ChatbotBeing on the phone line for hours to convey an issue and get advice hardly encourages clients to make small talks with bank employees; banking apps don’t allow clients to share personal insights either. Chatbots, on the other hand, are “all ears”. They permit customers to request as much info as they wish, explain their financial needs, objectives and preferences. They conduct detailed surveys for businesses that are of huge value since they help to craft personalized offers later on.

Moreover, chatbots increase the probability of being seen for such proposals – a study by Flurry states that people open messaging apps at least nine times a day, and only two times a day they use regular apps.

If a company provides relevant offers only, based on the client’s unique requirements, those clients are likely to stay loyal to such a firm and, again, recommend it to their friends.

#4 It appeals to millennials!

ChatbotsYouth, from a business point of view, are clients with a vast buying power, appreciative of technology like no other group. Chatbots operate within their favorite medium – messaging apps – and therefore open a large consumer market to financial firms.

Why is it important to have an experienced company build your chatbots?

Great ideas worth nothing if executed poorly.

Chatbots, in theory, are immensely promising for banks and other financial businesses. However, the implementation of them may backfire, too, if it brings a shoddy functionality to the end user.

What might go wrong with chatbots?

  • If a bot responds inadequately to users’ requests, it won’t clear, as expected, a company’s phone line, but lead to its overload instead. Provided with unhelpful data, users are likely to reach out to company’s support department to complain and get the info they needed in the first place.
  • Security may not be established. No one is willing to put sensible data at risk, especially if it concerns their money. Establishing robust security measures therefore is crucial to all companies who plan to apply chatbots. Biometrics, such as Touch ID or in-message authentication must be included to the tool, otherwise cautious customers simply won’t use it.
  • The bot might rely too much on a specific wording. Bots aren’t humans and can’t comprehend all queries out of context (yet, at least). That’s a given. People assume such flow when dealing with the software and don’t mind rephrasing a request occasionally to make it clearer. However, robot is supposed to mimic human conversation. That’s the entire idea behind it. And if it doesn’t understand casual talk and only reacts to certain phrases, the overall experience of using it becomes frustrating.

Be sure to consider these concerns prior to hiring engineers to build your chatbot. Only developers with substantial expertise could create bots that maximally resemble humans in ways of interactions.

Summing up

Small costs of implementation and maintenance; potential to reduce spendings on support services with just one tool that’s accessible 24/7 and handles customers’ queries without a slightest delay; collection of data needed to compose compelling, custom offers for each client – that’s just a few of a long list of benefits that chatbots present. Realizing this potential 80% of companies aspiring apply chatbots to their business by 2020 (according to BI).

However, capturing these immense opportunities is only possible when all risks are considered and bots are engineered properly, by diligent developers with a specific expertise.

At Perfectial, we’ve been working with chatbots for years, we know all the intricacies of their development and will gladly give you a hand, if you decide to launch one.

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Perfectial Expert: Volodymyr Bronnikov
Volodymyr Bronnikov

Software Architect

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