Digital Fintech: How AI Chatbots Play A Role In Fintech Industry
In recent years we have witnessed tremendous development in the financial sector and banking industry. Financial Technology is also acknowledged as FinTech, a state-of-art program designed for the financial industry to provide next-level customer service to their users through chatbots. Chatbots in fintech are intended to assist customers with their requests in the most dynamic way and act as a guidance channel from which they can better understand the customer needs.
What is a chatbot & its significance in distinctive industries?
Chatbot is an artificial intelligence (AI) computer software program known as digital assistance that simulates online chat or via text-to-speech using different languages through a website, messaging apps, or a telephone. Chatbot is designed to understand human skills. Chatbot interprets the user request and provides a prompt solution.
Chatbot is a cost-efficient system built that promotes any industry's operational performance by offering them convenient and effective services for their customers. Chatbots act as an instigator across various business industries.
With emerging technologies in fintech, AI is developed on deep learning to assist a massive number of customers at the same time without reducing the quality of services. Right from facilitating swift money transfers via mobile banking and net banking with the highest security to single scheduling tasks such as paying bills, clearing client’s invoices, buying bitcoins, etc., with the help of a chatbot.
Chatbots have become an intelligent solution for the significant financial and banking industry. They have eliminated the long queues at their branches, saving time and energy, giving customers the liberty to get the work done from anywhere without compromising the safety.
In recent years, Haptik introduced ready-to-use 100+ smart skills tools, a high-quality virtual assistant custom-crafted for various industries from retails, e-commerce, insurance, finances, telecom, travel, and hospitality, etc.
Haptik’s smart skills in the FSI industry developed chatbots that assists the customer’s in a diverse financial queries such as quick account balance check, mini statement of last five transactions, credit score, application status, loan assistance, loan payment calculator, upload documents virtually, assisting the user with account opening, and much more.
With the emerging technologies in fintech, chatbots are reshaping the digital marketing of the industries. Current studies show that 85% of the consumers prefer to get the chatbots’ solution instead of visiting sites and scrolling or posting the question on the search box.
Fintech companies need to handle various complex databases as well they need to store some confidential data of their customers, and it is humanly not possible to handle everything at once. Instead of getting more employees to handle the work and get them trained will add more time, chatbots make it easier by running everything flawlessly. The company doesn’t have to depend on their staff, and no matter what time it is, they can access the data on the system.
1. Use-cases of Chatbots in Fintech Industry
According to a Business Insider report worldwide, 67% of customers are using chatbots for customer support. Customer service in fintech is considered the primary essential function to run the organization. Hence, chatbots help companies have high customer service expectations and automate their profit while saving customer service costs by hiring more individuals.
Let’s find out how the emerging technologies in fintech adapt AI chatbots strategy and benefits to the industry and customers.
a. 24/7 Support
The 24/7 service can be integrated with a hotline number, website, quick text message assistance, mobile applications, and social media channels to empower the customers' service greatly.
This service is an essential piece of staying always connected, offering a high level of professionalism, and assisting customers through a complex process such as blocking debit/credit card in theft, account balance summary, generating pin, etc.
b. Financial Advice
An interesting paradox of the real-time digital fintech era is to get financial advice online. The intelligent AI-powered chatbots analyze a user's spending behavior and the transaction history to predict their future actions and recommend them.
For instance, if the fintech chatbot identifies an excellent transaction history, it helps them invest money for the future. Likewise, if it detects bad spending habits, it assists with money management.
c. Digital Payments
Digital payments in chatbot fintech are peer-to-peer-payments and help the customers make various kinds of transferring money processes. The automation in fintech chatbot has linked the bank account or Paypal or Apple Pay or Stripe or with other digital apps such as Paytm, amazon payment, etc. of the customers and assist them with paying bills, money transfer, online shopping, etc.
Emerging technologies in fintech, the chatbots, help the industry grow with an online advertisement on robust social media platforms such as Facebook, Google, Twitter, youtube, and quora. With the millions of social media users, the AI-powered chatbots in fintech scan the users to target the audience.
Notably, a fintech chatbot can assist the users with personal financial advice and digital payment and assist in growing money in different ways. Digital fintech chatbots powered with AI help users create and manage online portfolios and assist in ingenious savings methods.
f. Insurance & Loans
Automation in the fintech industry is offering insurance and loans with ease and the comfort of home. Chatbots are designed to provide interactive insurance and loan product solutions to more people.
A customer needs to answer some simple and specific questions. A chatbot can then automatically respond to the queries, offering them customized and cost-effective services and assisting the customer in uploading the proper documentation to avail the services
Read more: How personal finance chatbots can help users redefine money management
How Chatbots Can Transform the Fintech Industry?
With the emerging technologies in fintech, AI chatbots are revolutionizing the customer experience. Customer service provided by any fintech industry is equally important as the services or products they sell.
As the fintech industries are now enabling wide-spread adoption of quick mobile wallets to their customers effectively, it introduces affordable options over the smartphone, proving to be a reliable financial instrument.
Let’s find out how the digital fintech provides customers with the opportunity to use the services seamlessly.
a. Removes The Friction Of Cluttered Interface
38% of people close the sites or apps within five seconds if they find the software's complexity. AI integrated fintech chatbots help to smooth the friction and reduce the tech barriers. The inbuilt chatbots are designed to detect the human behavior and understand their needs.
b. Offers Proactive Suggestions
With the small pop up screen, a few numbers of the display can be seen at a time, and rather than the users keep searching for the services or product they need, the chatbot assists them by giving offers and proactive suggestions based on the answers the users provided for the simple questions. It is enhancing the personal experience.
c. Keeping Up With Millennials
Digital fintech chatbots are designed to keep up with millennials. With every recent technology advancement, the demand for instant assistance has grown tremendously, and millennials are steadily communicating via social media. Chatbot access and convenience quickly assist them and help to simplify millennial’s lives.
d. Automates Fraud Detection
Data privacy and security are the most important concern for any business because their prestige relies on them. Digital fintech chatbots are effectively monitored and issue a warning flag when they detect any scam activities and alter the bank and the customer.
e. Easy Marketing of Services
Automation in fintech chatbots helps in diversifying the audience traffic and promotes the company's services and products. Assisting the consumer in buying the products directly in the chat. Chatbots promotes the brand image via diverse social media channels such as Facebook, Twitter, Instagram, YouTube, etc.
f. Enhances Customer Loyalty
Fintech chatbots are designed to provide users engagement more proactive. It also attracts more customers who wish to browse the services or products without having a verbal interaction. The information gathered via chatbots helps the companies understand the consumer requirements and provide them with the services and products they need. It automatically enhances customer loyalty towards the companies.
g. Reduces Cost
Fintech chatbots are a one-time expense that turned into an investment and cheaper than hiring more agents. It is not only a cost-effective system, but the ability of the chatbots to deliver the result in seconds saves time as well.
h. One-Stop Solution
The users love the chatbot interaction because they can ask effortlessly what they need in their own language. Emerging technologies in fintech offer chatbots for one-stop solutions and personalize each user's experience by lessening the wait time and navigating sites.
i. Increases Revenue
Fintech chatbots powered by AI technology helps in generating business revenue. Chatbots work like the way how e-mail marketing operates. The difference is the sales funnel developed in chatbots is interactive and stimulation the user's conversation assisting them in choosing the right services and products they need.
From personalized shopping to a simplified buying process to secured payment getaways leads to a higher number of consumers.
Future of Fintech
The future of fintech brings the revolution in financial sectors by providing better and new services and products to the consumers. Fintech is forever changing the finance industry's prospects. AI changes the way enterprises interact with their consumers.
The financial sector is one of the industries that is considerably operating with complex systems for decades and urges to react to keep up with the evolving technology to fulfill the demands of tech-savvy users.
The spread of automation in fintech with AI-powered chatbots is considered the hottest service to provide various users assistance in less time. More unprecedented access to consumer information through AI, cloud computing, and analytic continue growing and changing and targeting users with different behaviors and needs.
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Fintech is reshaping the way people think about money. The introduction of chatbots allows fintech companies to provide value-added services to their customers and change the command based role to a conversation-based part. The emerging technologies in fintech immediately solve the consumer's queries and support.
Improved customer service experience leads to more customer satisfaction, which makes the company attract more profits from loyal customers. All data collected via fintech chatbots give the company insights on how to improve and provide better communication and financial results.
If you're wondering why to use a Fintech Chatbot for Your Business, this article will help you understand the benefits, use-cases and success stories - Fintech Chatbots for Business: Reshaping Customer Experiences