India Explores Digital Skills with Augme...
Posted in Financial by Adolf on Jul 28,2021 1926
A few months ago I had shared my experience about using a chatbot, while I was trying to reconfirm the venue of my scheduled interview. In the start the feel was exciting, as interacting with a talking machine on a large screen for a few seconds made me like I was transported to the era of the futuristic world shown in sci-fi movies.
For the uninitiated a Chatbot is an artificial intelligence (AI) driven computer program deployed for interaction. Commonly known as a ‘conversational agent’, it simulates human speech for interacting with its user and enables this communication through texts, audio, or telephone. It can mimic real-life conversations and are therefore used in various sectors such as telecom, healthcare, banking, media, travel & tourism, etc.
Chatbots can either have a simple interface with a question or answer template, or a human look-a-like chatbot that mimics human action and expressions while answering to your queries. The virtual assistant can chat with you and all it takes are several simple questions. This intelligent technology can help you book hotels, airplane tickets, restaurants, even order food from your favourite eateries, help look for the specific stuff during online shopping, as well as also assist in reducing the workload of the HR department by screening thousands of resumes and filtering out the promising candidates for the job.
The banking sector has started venturing in the zone of advanced technology, where it has been one of the main users of chatbots for catering to a large number customers and building its relations with them. Artificial Intelligence tools have been adopted to focus on bringing customer satisfaction at the forefront.
Banking Chatbots – A whole new world of banking!
One of the key reasons of introducing chatbots in the banking sector is to provide a better service experience. Not only does it provide fast and simple solutions, it also helps reduce or prevent stressful situations faced by the staff due to face-to-face conversations with the clients. The tasks that could be completed either by visiting the bank branch or by waiting on the call to speak with a customer support agent, people now favour digital banking and virtual assistants.
Artificial Intelligence (AI) in banking is overhauling the way that banks interact with their clients. No longer do they rely on in-person customer service. Instead, they are innovating with intelligent chatbots that can provide 24/7 service, with almost zero human intervention and marginal cost. The use of big data in risk assessments gives banks more visibility over their clients than ever before and the prospect of much greater personalization across credit pricing, day-to-day customer interaction, and digital financial guidance and advice. There has been a rise in its usage as they have multiple advantages that encourage investments in this industry, which in turn boosts its market growth.
Banking Chatbots can help you with your several day-to-day banking activities, such as check account balances and details, get reminders and notifications on bill payments, duplicate charges and fraud or suspicious activities, transfer money, apply for new services such as loans, new card, as well as report lost or stolen cards, check for rewards and card point balances, get transaction history on spending analysis and future budgeting recommendations.
The retail banks are forecasted to spend US$4.9 billion on AI platforms worldwide by 2024. This is up from US$1.8bn in 2019, representing a CAGR of 21.8%. The AI platform is divided into seven technologies: machine learning, data science, conversational platforms, computer vision, AI chips, smart robots, and context-aware computing.
AI is also playing a critical role in the response to the growing frequency and severity of cyber-attacks. As cybercriminals employ more advanced tools, banks must keep pace by employing machine learning tools to hunt and counter these activities, which are too dynamic to be countered manually. The entire banking stack is being upended by AI; to survive, banks must make adopting it a priority - or risks losing out to cloud-native fintechs that have incorporate AI in their operations from day one.
Although the use of Chatbot solutions is increasing among various industries; there still remain challenges in effectively utilizing Chatbots solutions mainly due to the limited awareness regarding it. The feel of communicating with a machine is different. We can say that the answers are precise and to the point, however there are certain limitations that come with the new technology. Since chatbots are fed with specific data sets, it is possible for them to fail to understand or fully cater to the customers’ questions.
After all the above discussions, we can conclude that chatbots and the AI or virtual assistants are proving to be a game-changer in order to provide exceptional customer service. Since it is all about money and reputation here, the banking and finance industry is rapidly incorporating these technologies in their system.