Trend Watch: Digital Innovation & AI to Transform Financial Services
The financial services industry is changing rapidly. Thanks to fintech and related innovations, traditional ways of managing money are being replaced by more convenient alternatives. Specifically, the rise of chatbots in banking and AI technologies are disrupting the traditional financial framework and creating a form of conversational banking never seen before. For those currently working in the industry, it’s going to be important to adapt in the coming years. As Millennials grow their savings and start considering their financial options, they’re going to want new ways to spend, save, and invest their funds. The idea of banks for Millenials is becoming an increasingly popular notion, and fintech technology is quickly advancing in response.
The following are some major innovations in banking platforms to keep in mind as this trend continues. They’ll help you better understand what this tech revolution in finance means for bankers, customers, and everyone in between.
More and more, customers are demonstrating a preference for mobile solutions. Instead of visiting brick-and-mortar establishments, they want to do all their banking via phones or tablets. This is best exemplified in Bank of America’s mobile banking platform, which boasts 24 million users – and that’s just one example. Think about how many other banking institutions there are that can leverage mobile fintech to make their processes more efficient, and their customers more satisfied
That’s why it’s important for banks, fintech startups, and anyone else working in the financial services industry to develop conversational banking apps that match the kind of customer service a person gets when interacting with an actual person. Maintaining a large, human customer service team is neither the scalable nor most efficient option for giving customers what they need and want from their banking experience. However, technologies like fintech chatbots can replicate the in-person experience for users on mobile devices.
The Role of AI and Fintech Chatbots in the Customer Experience
As artificial intelligence technology continues to improve and develop, the list of potential roles they can play grows and the use cases for chatbots in banking increase.
For instance, consider how a fintech chatbot could offer a superior customer experience in retail. Perhaps a customer wants to make a purchase online, but they’re not sure it’s a smart financial decision. A fintech chatbot could relay information about their account balance, credit score, etc., helping them make more informed choices.
Some fintech startups are also using AI to offer clients the services of a financial advisor, without hiring an actual person for the job.
While some people may not be ready to trust a robot with their major financial decisions, as the technology continues to improve, confidence will grow. As the use cases for chatbots in banking have already demonstrated, this innovation can help in the process. These AI banking platforms can give the entire process a more “human” feel for customers through personalized conversations and tailored financial advice. They might be less intimidated if they feel as though they’re actually interacting with a real person.
AI Chatbots for Banking Employees
Fintech chatbots will also help both startups and the larger financial companies to grow. Instead of hiring a human for every job in their business, they can build a chatbot instead. An AI chatbot could fill the role of customer service representative, personal assistant, and even social media marketer. The implementation of AI and chatbots in banking can save money and resources that can lead to overall growth in what is today’s competitive financial environment.
With technology changing so quickly, it’s difficult to predict all of the developments we should expect in the financial services industry over the course of the next few years. That being said, current digital trends make it abundantly clear that the industry is transforming thanks to the rise of AI and fintech chatbots. By leveraging these technologies, we expect that the financial sector will become better for everyone: customers, employees, and businesses.