Understanding and responding to human conversation, using Artificial Intelligence, is the essential function of a chatbot. In recent years, with increasing technological advancement, the introduction of AI-powered chatbots has revolutionized different industries, including finance, banking, healthcare, and real estate, among others. AI-driven chatbots have proved to be particularly crucial to the Fintech sector, enabling companies to serve customers better and in the process, improve business performance.
Can AI technology bring back the lost human connection that bankers had, in earlier times, with their customers, assisting them in decision-making? The answer is yes.
Digital Fintech uses specialized software and algorithms to process information about customers and offers highly customizable and tailored services and products.
AI Chatbots- Conversational AI for Financial Services
Conversational AI is basically a technology that users can interact with, to have a human-like communication in real-time. This technology uses interfaces such as chatbots, messaging apps, and voice assistants. In Fintech, conversational AI can act as a digital assistant for customers, while collecting information about their spending habits and choices, identifying their requirements. The data collected in the process can then be utilized by Fintech companies to increase sales and drive business. Conversational AI can also be utilized to fully automate customer touch-points. These include websites and applications, social media platforms, messaging platforms, and voice assistants, making communications more efficient. Conversational AI is also visually more engaging, using text-based messaging and graphic elements, to offer a fun and interactive experience.
Importance Of AI Chatbots In The Fintech Sector:
- Enhancing security: Machine learning, a subfield of AI, analyses and learns from behavioral patterns. Machine learning-based Fintech chatbots thus help businesses to identify fraudulent activities by spotting suspicious behavior.
- Increasing customer satisfaction: Chatbots have achieved this by simplifying complex processes, eliminating paperwork, lessening or eliminating wait times, reducing tech barriers, smoothing friction, and conversing in the customer’s preferred language.
- AI Chatbots are a time-effective solution: With the help of AI chatbots, Fintech employees can say goodbye to tedious, time-consuming, and repetitive tasks, enabling them to focus on core activities.
- Increasing revenue and reducing cost: AI chatbots have replaced e-mail marketing, offering instead an interaction that is stimulating and useful to the customer.
- Offering customized services in real-time: Chatbots are designed to engage with customers and collect information regarding customer behavior, product preference, and feedback. This enables AI chatbots to recommend useful products and services to customers and provide business insights to brands.
Why Do Users Prefer AI Chatbots Over Live Communication?
“ Bots and chat make it easier for people to buy the way they want to, when they want to – and that should be the goal of any business.” – David Cancel ( CEO, Drift. )
The use of chatbots has helped mitigate the frustrations of modern customers, who expect to find relevant information at a click of a button. Surveys conducted by businesses have shown that traditional online methods require some form of live interaction with customers. Let us take a look at some of the benefits of using AI chatbots :
- Better customer service: With chatbots, customer service has been made easier, as customers receive quick and efficient answers to queries and the best resolutions to problems. This has helped in securing brand loyalty.
- Integrated purchase-prediction: AI chatbots have helped predict customer requirements, based on purchase history.
- Personal touch: Conversational chatbots allow machines to simulate human conversation using natural language processing. Customers don’t feel like they are talking to a machine when interacting with cutting-edge chatbots.
- Cost-efficient: The development costs involved for creating interactive ChatBots in Fintech are little to none. There are several tools and apps that can be used to launch a chatbot strategy!
- Added security: AI-powered speech, facial, fingerprint, and other biometric recognition system ensures added security against trespassers.
- Scalability: The AI chatbot technology is scalable, allowing endless alterations to help customers and businesses.
How Are AI Chatbots Transforming The Future Of Fintech?
The 2020 pandemic has given a major boost to digital communication, which has, in turn, affected the financial industry. Research shows that AI chatbots are the future of Fintech customer servicing, with Juniper Research predicting that between 2019-2023, banking-related chatbot interactions will grow by 3,1505%. 826 million hours will be saved by banks through chatbot interactions in 2023. Customer experience will further improve, with virtual AI and ML-powered chatbots, designed to respond within seconds. With regard to AI in Fintech, the possibilities are endless and are just starting to be realized.
Conclusion
Keeping in mind the recent trends and developments in the AI chatbots technology and their importance in the Fintech industry, we, at GeekyAnts – React andReact Native app development company, are constantly working on creating apps for our clients based on this technology to help them with their ventures. Our developers create streamlined services to help businesses give digitally-minded customers what they want and stay relevant in the Fintech industry.
