Will Conversational Banking Be The Next Fintech Trend

April 2, 2020

The fintech industry companies are proving to be a major competition for traditional banks. A major reason behind this is their technological advancement and efficient customer service. In fact, the 24x7 financial customer service is becoming the new normal.

Considering that not all office resources can be available at all times, chatbots are becoming a huge trend among fintech companies today. In this blog, we will aim to decipher how conversational banking caters to the rising expectations of the fintech customers. Moreover, we will study how these fintech companies are using chatbots to cut down on their costs and increase customer loyalty.

Why Chatbots Are Changing The Face Of Fintech Industry

There are various reasons why chatbots are such an attractive proposition for fintech companies. Some of those major reasons are listed below:

1) Chatbots Helps In Cost Cutting

Chatbots are known to be very efficient automation systems. They can help you accomplish tasks that would have otherwise entailed the extremely costly human personnel. Most importantly, they allow you to cut costs without compromising on the quality of your customer and product service.

Furthermore, a lot of customers have similar queries. Chatbots can help fintech companies handle their social media queries, emails, chat, etc. that can seem repetitive to an agent. This way, company personnel can focus on more important matters like innovation and sales qualification.

2) Chatbots Provide Better Customer Service

Moreover, chatbots capture all the required customer information that can be used to aid them better. This can be the development of the particular query they raised or just their company information and chatbot use. This ‘contextual insight’ helps the chatbot resolve customer issues. This is in vast contrast to the past when customers had to wait for agents to pass the information amongst each other in case of different time shifts.

In addition to this, chatbots can resolve multiple customer queries at a time. Hence, the customers do not have to wait in queue for their issues to get resolved. This scenario gives respect to customers’ time and leads to a higher rate of customer satisfaction.

Furthermore, It is possible for your customer service agents to have a bad day. However, chatbots do not have the same problem. They are available at all times with the same competency. In fact, experts say that chatbots are an attractive customer service option because they “never tire, do not call in sick, and if designed correctly are consistent and exacting.”

3) Chatbots Can Help Drive Revenues

A lot of fintech companies are using chatbots to generate qualified leads and closing sales. They can also help increase sales by informing customers about the present offers and discounts. Moreover, they create opportunities to upsell and cross-sell your banking services without seeming overbearing. If done right, chatbots can open up avenues for customers to discover your company’s financial products that they were not aware of beforehand.

Companies outside the fintech industry are already using this tactic to increase their sales exponentially. For instance, the Taco Bell chatbot called the Emoji Engine increases its brand awareness and leads through witty responses and helpful customer issue resolution.

4) Chatbots Boosts Customer Loyalty

One of the biggest plus points of innovative chatbots is the level of personalization they offer. So, owing to the presence of ‘contextual insight’, they can offer targeted services to the customers and leads. Fintech chatbots can recommend investment options to their users based on their risk profile and savings bank. Moreover, they can suggest how those users can utilize their credit card reward points. They can also recommend financial news and its impact on that particular user.

Furthermore, chatbots can also simplify the banking transactions for the customers. This is even more important in light of the fact that AgeTech itself is highly valued amongst customers today. Chatbots can now aid customers in getting access to their transaction history and allow them to make complex banking transactions in a matter of minutes. Above all, chatbots can anticipate the needs of the customer using context and predictive analysis. Through this, they can provide smart suggestions to the customer.

5) Chatbots Decrease The Chances Of Fraud

A Fintech company’s biggest nightmare is their security being compromised. Not only does it result in losses, but it can also be a threat to the company’s reputation. On top of that, the frequency of frauds is continually increasing in today’s time. Chatbots can prove to be deterrent to online frauds as they work in real-time. They monitor every banking transaction of the customer. Hence, they can warn the customer if any unusual activity is taking place and can guide them through the steps of fraud resolution.

India is the country with the highest youth population. The ‘Millenial’ generation is known for its technological advancement and digital expectation. We have discussed how chatbots can prove to be a great investment for fintech firms. However, if we take the majority of future clients into account, the use of chatbot becomes a necessity. In fact, 67% of customers today already use chatbots. GenZ and Millenial population prefer to take the help of automated chatbots for quick issue resolution as well. This opens room for discussion on how chatbots will be used in the upcoming future. This question becomes all the more imminent as the fintech industry continues to become largely automated.

About The Author

This blog was authored by Etee Dubey. It was edited by Tony Benoy.