How AI Chatbots are playing a role in the FinTech industry

Recent years have witnessed enormous development in the financial sector. Financial technology or FinTech, has played a critical role in providing next-level customer service to users via the use of AI-powered Chatbots. Chatbots are meant to help customers with their requests in the most dynamic way possible, and today also act as a guiding channel that can help companies better understand the needs of their customers. According to a Juniper study, the use of chatbots will end up saving banks up to $7.3 billion worldwide by 2023, representing a time savings of 862 million hours, or nearly half a million years of work.

The functions of a Chatbot are practically endless. Some of the useful applications include: automated and personalized customer support, 24/7 access, ease of use, cost savings, data collection information, audience segmentation, feedback collection, new account generation and many more

To better understand the role of an AI Chatbot in the FinTech sector, let’s take a look at some key use cases:

• Omni-Channel Banking Capabilities: With the emergence of the digital era, today’s customers do not match the arcade usage patterns and expectations previously associated with traditional financial sectors. As customers today want access to services anytime, anywhere, AI Chatbots are able to help the FinTech sector ensure that by reaching and engaging customers via email, text messages, social media platforms, etc.

• Activation of online payment: Today, there are countless means available to make payments, regardless of what you have to pay for. Given the abundance of options, there is always room for unnecessary complexity when it comes to providing customers with the exact payment option they need. Chatbots help greatly simplify this process by helping customers find and make payments according to their preferences. New-age Chatbots can also be connected to bank accounts, digital wallets, etc. which greatly eases the process for the customers.

• Gaining insight: Just like any other sector, the future of the FinTech industry is also quite dependent on data. AI Chatbots help companies collect and process huge amounts of data regarding the needs of customers, transaction history, claims, etc. With the help of the insights generated from the information collected, FinTech companies can easily drive sales for their business. Therefore, with the help of AI Chatbots, certain complex decisions can be greatly simplified.

• Improved customer service: As the banking and finance sector is extremely competitive, there must also be a huge focus on customer service. AI Chatbots, help in this regard by helping businesses gather immensely valuable data about customers, via Chatbot interactions, while humanizing the technology-based system. The information gathered is then utilized by human managers to strategize and create tailored services that will suit customers better.

• Leading generation: As older methods of lead generation such as cold emailing have now become obsolete, AI Chatbots are in line with the new era of automation. Based on the insights gathered about customers’ spending history, choices, requirements, etc., FinTech companies can identify target customers who are looking for loans, investment options or other financial services. In addition, there is an advantage of reduction in junk sales due to the filtering systems used by robots. In fact, the reach of AI Chatbots is so profound that companies have seen a record 600% increase in targeted lead generation after their inclusion.

• Ensuring data compliance: With the growing concerns about data security, governments across hello have introduced various strict rules that can help protect users. Ensuring compliance with the laws and regulations that exist today can be a challenging process, but it’s something Chatbots can help with. By recording necessary parts of the information while interacting with customers, which comply with relevant laws, such as preparing records for a specific customer’s consent, Chatbots can help ensure data compliance in necessary circumstances.

As artificial intelligence continues to create opportunities for the FinTech industry, it is clear that customer expectations will follow suit. The implementation of AI Chatbots enables FinTech companies to build customer relationships while increasing customer loyalty and satisfaction. The Indian FinTech market is projected to become the third largest market in the world by the year 2025. Hence, Chatbots are expected to enhance customer service, assist financial institutions in terms of data collection, long-term cost savings, and provide insight into consumer behavior.

By enabling businesses to pursue relevant aspects digitally to foster new business opportunities, chatbots can offer them a competitive edge in the lead market.

The author is Vineet Tyagi, Global CTO, Biz2X