4 Ways Banking Chatbots Can Create Enhanced User Experience


Over the years, technology has made banking more automated and convenient for the user. Digital technologies like net banking, virtual banking (Google Pay, PayPal, etc.), Chatbots have revolutionized digital transformation in the banking sector.

An enhanced customer experience is the goal of every business and industry. Chatbots in banking and finance improve the customer experience tremendously, providing better results. These AI chatbots allow customers to transfer money, check their account balance, change their billing address, learn more about interest rates, and more in a much more convenient manner.

AI chatbot in banking generates additional revenue, onboard new and potential customers faster and efficiently, enhances sales conversion rates, lowers the service cost, and improves debt collection while providing a superior user and customer experience.

A chatbot in banking intelligently provides the user experience, allowing banks to understand customers’ needs and requirements in a robust manner. Banks that use conversational AI through NLP (Natural Language Processing) have a great opportunity to build their brand awareness, loyalty, and own customer conversion.

Today’s article will discuss four amazing ways banking chatbots can improve your user and customer experience.

Benefits of chatbots in banking for better consumer experience

Earlier customers needed to physically approach a bank branch to carry out their banking work. But with the advent of digital banking and transformation, banking and transaction processing have now transferred to individual customers’ mobile.

This transformation has diminished the personal banking connection. Banking chatbots bridged this gap between the banks and the customers.

There are several benefits of a chatbot in banking and improving user experience. Let us look at them one by one.

1. Responsive and quick FAQ answering

Every customer has certain banking-related questions to which they require a quick and easy response. Frequently asked questions and queries such as adding a cardholder to their bank account, freezing a bank account after losing a credit card are common to which chatbots provide easy and fast responses. Moreover, it also provides answers to product-related queries, best credit cards, loan interest rates information, easily accessible FAQ pages links, and more.
Banks using chatbots cut down the call center overhead and let the agents focus on much complex tasks and queries that require much attention, which bots cannot handle.

2. Facilitating core banking activities

Chatbots can manage core banking activities, for example, payments and loads, through a chat window. This means users can easily pay invoices, transfer money across bank accounts, apply for a mortgage, and more just by conversing with a banking chatbot.

Though not every chatbot can handle this, most of them only answer basic questions or draw data from FAQs. However, a few robust chatbots are integrated with user’s and customer’s accounts through API (Application Programming Interface) and smart data discovery.

3. Marketing and onboarding customers

Many banks also use chatbots in their marketing strategies, enhancing customer experience and improving the bank’s brand loyalty and awareness. Chatbots achieve this marketing by:

  • Sending users’ or customers’ relevant information and notifications when they are logged in to their bank account or on the bank website.
  • Personalizing the user’s experience.
  • Gathering and analyzing customer feedback.
  • Allowing the customer support team to address current or emerging issues.
  • Increasing revenue and conversion rate, moving users through the sales process.

In addition, chatbots also play an essential role in banking through conversational AI, conversing with potential customers while filling out a loan application, or navigating through the bank’s official website.

In an application form or on a landing page, banking chatbots suggest or pre-populate fields, which also improves customer experience, reducing their time and effort to fill out an application form, and increases their chances of staying on the web page longer than they anticipated.

4. Analyzing customer sentiment and tone

AI user experience has also improved because of constantly changing algorithms and CUIs to understand users’ sentiments better. Today’s sentiment analysis algorithms are much advanced as they consider more context and analyze sentences as they contain positive sentiments. More robust chatbots are also capable of analyzing sarcasm as well.

Such analysis helps banks determine the next step to help customers and to serve them better.

Summing Up

Banking chatbots are not there to replace human customer service entirely; instead, they make it easy and convenient for the banks and their customers. These chatbots enhance customer or user experience but also help bank agents to focus and spend their efforts on much complex and higher-value issues.

interface.ai helps financial institutions reduce operational costs tremendously by freeing up resources using intelligent AI like banking chatbots in banking. Visit interface.ai to avail of intelligent banking solutions and enhance your customer’s user experience today.