Chatbots and virtual assistants in banks are transforming to assume the role of virtual agents:
It was in 2017 that conversational banking, a medium that was considered highly effective, got a fillip. It was in that year that some top US banks announced the implementation of chatbots and virtual assistants for the first time. Subsequently, chatbots became one of the priced features of customer assistance in banks holding out the promise of personal, one-to-one conversations with customers and evolving solutions to their problems. Chatbots were either a simple button-based software program to initiate a conversation with the customers, or they were advanced AI-powered tools capable of contextual conversations. A simple chatbot enables a customer to know his account balance or get a statement of accounts or have a list of money transfers during a specific period. On the other hand, chatbot systems powered by AI are capable of completing complex tasks like having real-time contextual conversations with customers, offering customer-specific advisories and performing instant transactions on behalf of the customers, merely based on a voice directive.
Today, chatbots can be deployed in one or multiple channels allowing customers to use them even as transaction platforms. They can also be integrated with applications such as Facebook, Twitter or WhatsApp. There are advanced voice-based virtual assistants that are developed with the assistance of Deep Learning. There are banks, which are leveraging voice-cum-text-based chatbots with multiple functionalities.
FOR SEAMLESS EXPERIENCE
In a span of less than 10 years, chatbots have acquired capabilities like accessing a customer’s account history, record of his purchases, his spending patterns, his projected availability of funds and then offering tailored assistance, and finance-related advice. These chatbots have in-built security features that can detect suspicious transactions and have biometric verification for safe interactions. Based on standing instructions, they can also manage financial tasks, including investments of spare funds. They are also capable of integrating efficiently with other digital services thereby providing a seamless banking experience.
With technology in banking now at its optimum advanced stage with AI playing a pivotal role, chatbots and virtual assistants are transforming. They are expected to have capabilities like crypto analysis on a real-time basis, enabling customers to take informed trading decisions. They are being equipped with blockchain-based identity verification process to ensure that security protocols are strictly followed. Work is also on to integrate technologies like Large Language Models, or LLMs, into chatbots for increased conversational abilities.
Some of the virtual assistants of global banks use highly complex AI technologies to understand user preferences, provide context-aware responses and assist with a wide range of banking activities.
VA AND CHATBOTS
It is important to understand that virtual assistants are quite distinct from chatbots. While chatbots are capable of rule-based interactions, responding to commands and questions with pre-defined rules and mostly handle repetitive tasks, virtual assistants that are designed and developed using advanced AI tools can understand context, remember interactions and engage in dynamic conversations with customers.
They are more complex and capable of learning and adapting over time.
Some of the perceived benefits of having AI-powered virtual assistants are:
- instant 24×7 support, improving customer satisfaction
- automating routine tasks freeing staff from more complex work
- handling multiple inquiries simultaneously, reducing the need for a large customer service team
- analyzing customer data and offering customized financial guidance
- analyzing interaction data and offering valuable insights into customer preferences and behavior.
POWERED BY AI
With the use of AI, chatbots and virtual assistants can be capable of:
- offering highly personalized banking experiences, providing insights and recommendations, most suitable for an individual based on his financial behavior and preferences
- emotion recognition so that they can detect and respond to customer emotions, paving the way for nuanced and specific responses
- better use of voice technology to make customer interactions more convenient and fulfilling
- autonomous management of specific financial tasks like investments or savings, based on user preferences and targets
- advanced security features, including biometric verification and real-time fraud detection and better integration between chatbots and virtual assistants and other digital services
- use of blockchain technology so that there is higher levels of transparency and security in transactions handled by chatbots and virtual assistants.
With digital assistance becoming crucial in financial services, chatbots and virtual assistants are set to change the way banks interact with their customers. It is not just about offering 24×7 help but about using advanced algorithms in finding a solution to the customers’ problems.
POPULAR CHATBOTS
Some of the known chatbots and virtual assistants implemented by global banks are:
Ceba of Commonwealth Bank, an AI-based chatbot capable of helping customers like assisting them in activating a card, checking account balances, money transactions, and more. It is available 24/7 to all customers of the bank.
Citi Bot SG from Citi, which can help customers with basic account information through Facebook Messenger. It is available 24×7 and offers real-time responses to queries about account balance, transaction history, card payment information, etc. It learns through user feedback to minimize the need to contact human agents.
TD Clari of TD Bank, which is capable of giving instant responses to many typical questions about the bank account. It can not only answer questions, but also assist with tasks such as money transfers, paying bills etc and analyze spending habits by dividing transactions into categories.
Eno from Capital One that helps protect accounts and credit cards by monitoring transactions and sending notifications. It can also help customers track their spending by checking recurring charges.
Erica from Bank of America is a virtual financial assistant and offers the customer a live chat with a specialist and personalized insights on finances. Erica can help replace lost or stolen cards, check account balances, or get account information.
Eva from HDFC Bank is defined as a personal assistant for the bank’s customers. It allows users to open a savings account, check its benefits, find the bank’s branches, and more. It can understand voice commands and help find the right personal and business loan offer or assist in getting a loan on one’s credit card.
iPal of ICICI Bank, an AI-based virtual financial assistant and an omnichannel tool that can be used in internet banking, iMobile and Pockets.
Chase Digital Assistant of JPMorgan Chase, that is capable of checking account balance, getting account or routing numbers, replacing, locking or unlocking credit and debit cards, transferring money or paying bills of seeing investment watchlists.
NOMI from the Royal Bank of Canada is an intelligent assistant offering services to customers like NOMI Insights, NOMI Find & SAVE, NOMI Budgets, etc. It can analyze monthly cash flow and categorize transactions. It can also help in finding ways to save money using predictive technology.
What could the chatbots and virtual assistants of future be?
Experts say these can assume the role of advanced financial assistants offering personalized experience for users. The may make use of AI to analyze user intent and offer personalized offers. They can be capable of using generative AI and carry out complex tasks like generating financial reports.
ADVENT OF VIRTUAL AGENTS
AI-based chatbots and virtual assistants are now in the priority list for banks and financial services institutions. Many of them are in the process of developing and implementing what is known as ‘virtual agents’, which are capable of offering many benefits to both customers and the financial institutions. Making use of NLP and ML, these virtual agents can bring in better user experience by instant response to customer queries, replace outdated processes and deliver updates and notifications. They are also capable of developing comprehensive customer profiles and facilitating more interactive and personalized conversations.
Facilities that are incorporated in these virtual agents are real-time location tracking by leveraging mobile GPS so that a customer’s location can be determined and then provide real-time, location-specific answers and services. Customers can get specific directions to local branches and services and receive notifications and alerts specific to their location. They are also capable of offering assistance to banking staff by offering on-the-spot training and to financial advisors by giving them instant access to precise and real-time insights.
Virtual agents will also be making use of the voice recognition technology to respond to voice commands in natural language, allowing for more intuitive customer service experiences and direct interactions with not just customers, but employees too.
As chatbots and virtual assistants become more sophisticated and gain popularity, they will assume the role of valuable resources in banking domain.
For example, there are predictions that virtual agents may take up the role of banking advisors.
In some years, the scope of chatbots and virtual assistants will be to offer better support for multi-level functionality, scenarios and contextual answers. As they get more integrated into the total system of a bank, they will work in tandem with the bank staff.
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