Improve customer experience in Banking industries with Chatbot

Chatbot in banking is one of the trending banking software category which is designed to enhance customer experience through simplifying communication between systems and humans. Brand new tools like Virtual Assistants or Chatbots have gained immense popularity amongst the public due to its intuitive features and capabilities.

Chatbot is an artificial intelligence (AI) based software platform that is capable of performing conversations via text messages, mobile applications, websites etc. It is one of the innovative ways of communication, which pays close attention and provides instant feedback containing accurate information.

Significance of chatbot in banking

Chatbots aims at streamlining conversations between the consumers and service providers thereby improving user experience as well. In addition, they do offer excellent opportunities for organizations to stimulate engagement process of customers. 

Operational efficiency is amplified by cutting down unnecessary expenses of customer services. Despite the type of approach and portal used, human intervention plays a vital role in training, configuring and customizing the chatbot system. To obtain required output, blend of varying Artificial Intelligence (AI) forms like machine learning, natural language processing is a great option.

Origin of Chatbot

Michael Mauldin conceived the term ‘Chatterbot’ back in the year 1994 to address various conversational programs. At present, majority of the chatbot in banking are performed through popular virtual assistants like Google Assistant, Amazon Alexa and social media platforms like Facebook, WeChat etc. Chatbots are broadly divided into the following segments:

Customer support Design Entertainment
Finance Food Health
Sports Travel and tourism Shopping
Games News Marketing

Role of chatbots in banking and consumer focused industries

Numerous organizations operate Chatbot on messaging applications or through sending text messages. However, in the year 2016, messaging apps like Facebook messenger enabled developers to include chatbots in their portal. Thirty thousand chatbots, which were introduced exclusively for FB messenger, had increased to approximately hundred thousand in the year September 2017.

Bots are normally categorized under one of the contact’s list of a user. However, they might even appear in the form of participants via group chat sessions. Today, most of the financial institutions, health care providers, hotels, airline companies, educational sectors and insurance leverage chat bot to make reply to simple queries. It would further increase the user engagement and can be used to promote growth of a business organization.

According to reports in the year 2017, 4% of firms took advantage of chatbots. A primary benefit of resorting to chatbot is that it helps you to save considerable amount of time. For example, if chatbots are incorporated in banking websites, precise and accurate response is executed to queries raised by customers. As a result, customers are not required to wait for a longer period of time to receive feedbacks. This is also helpful for other banking departments to enhance productivity and reduce costs. Banks are switching over to chatbots rapidly. Customer satisfaction is guaranteed if chatbots are used optimally. Chatbots are readily available at your disposal where discerning clients could raise questions and get updates on a regular basis.

Chatbots are helpful in creating a powerful customer base. Both individuals and business organizations could leverage chatbots that are carried out in different applications to boost growth of a business organization. The chances of flaws are remote if customer services are handled by chatbots. Possibilities of omitting transpose numbers and response time are high when the service is managed manually.

Chatbots in Banking improve Operational Efficiency

Chatbots have proven to be an asset since it has the capacity to improve operational efficiency and provide instant feedbacks to questions asked by the customers. Chatbots stave off hurdles that might arise during course of the conversation. It is a user-friendly software that ultimately enhances user experience.

How to operate a Chatbot?

The working mode of Chatbot is quite similar to that of a manually functioned help desk programs. For example, if an individual post a question in the chat window, chatbots would respond instantly by providing accurate answers.

Customers would not even know that they are actually interacting with a software. Existing Artificial Intelligence chatbots simulate human conversations via inputting pre-define user phrases, oral and text-based signals.

Chat bots comprises of two major groups namely:

Well-structured and scripted questions:

Chatbots are programmed to respond to only those queries which have instant replies. As a result, this software fails to send a feedback to the customers if they are not familiar with a question.

Intuitive:

Chatbots are well aware of the language, so one need not spent time on framing specific queries. They have a remarkable grasping power to understand each conversation executed in the past. This is helpful in enlarging their mode of operation.

How to train a Chatbot in banking setup?

Training a chatbot is a bit complicated process that involves developing massive volume of conversation logs. Through that, a chatbot could easily perceive most probable questions and answers. Standard customer service personnel are provided a comprehensive step-by-step instruction to deal with customers.

Bots leverage pattern matches to organize text thereby furnishing accurate response to clients. Artificial Intelligence Markup Language is a basic structured model used in pattern matches.

For a wide variety of applications, the Chat bots are interlinked with a database that is meant to preserve chat bots and offer proper responses to each user. This program transcribes human language into useful information containing a combination of text contents and patterns. User program interfaces along with services and applications are capitalized to create chat bots. It is best suited for small, medium and large scale business organizations. This would in turn establish a powerful customer base by improving customer support services and increases the sales turnover of a company.

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