In recent years, banking systems have made quite a leap — from brick-and-mortar institutions to mobile banking and now the implementation of artificial intelligence. AI in banking is not just a fancy word — it is highly efficient and is predicted to contribute about $1 trillion to the industry.  

What is it if not a sign to take advantage of artificial intelligence in your business? Start with AI chatbots. As banks deal with many clients, chatbots can streamline customer support processes and enhance data collection. In this article, you will find out why AI chatbots are essential to the banking industry and get some real examples of them in action. 

What is an AI banking chatbot? 

AI chatbots are virtual assistants that use Natural Language Processing (NLP) and Machine Learning (ML). NLP enables chatbots to understand and interpret human language, while ML helps to recognize common patterns in requests and make informed decisions. 

Chatbots are cost-effective and secure equivalents to customer support agents. They can operate smoothly to the point the customer cannot tell whether they are talking to a real person or a virtual assistant. Among other benefits of AI chatbots for the banking industry are: 

• Personalized customer support—Chatbots can create a unique experience for every customer 24/7. Since banks offer many services and products, chatbots can recommend these extra features to users, increasing customer engagement. Another plus is the abundance of languages that chatbots can operate in, thus assisting clients all around the world. 
• Fraud detection and security — AI chatbots are equipped with machine learning algorithms. Therefore, they can spot suspicious transactions and notify customers about potential dangers while suggesting ways to strengthen the security of their accounts. They can also assist in verifying transactions by asking users to provide additional information, like answers to security questions or OTP (One-Time Password).
• Process automation — Chatbots can automate routine tasks, like answering FAQs, processing transaction history requests, and more. This allows human employees to engage in more complex and creative processes, while digital banks can significantly reduce operational costs.
• Data collection and analytics — Chatbots can gather insights about customers, their common transaction types and banking services, their main issues, and the frequently asked questions. Based on these findings, chatbots can send reports to the designated departments that can take measures to enhance customer experience. They also collect user information, like necessary documents, anti-money laundering (AML) checks, and tax reporting obligations to help customers speed up their verification processes. 
• Inclusivity and accessibility — AI chatbots can simplify complex banking processes for those with little or no experience with digital banks. Additionally, they greatly support individuals with visual or motor impairments by generating voice responses. 

The use cases of AI chatbots in the banking industry 

According to statistics, 32% of financial institutions have already implemented artificial intelligence into their routine. Let’s see how banks are using AI chatbots: 

1. Eno 

Capital One introduced Eno in the United States as an AI chatbot. It has a user-friendly interface and allows customers to perform tasks such as viewing translation history, paying bills, transferring funds between accounts, and more. 

2. Ceba 

Ceba was created for the Australian bank Commonwealth Bank. It can perform up to 200 banking operations, including making payments and activating cards. Armed with ML algorithms, Ceba can analyze customer behavior and provide personalized recommendations. 

3. Erica 

Erica is the creation of the Bank of America. It helps users monitor their spending habits, check their FICO score, and get more information about merchant refunds. Over 25 million customers use this chatbot. 

4. Digibot 

Digibot was created by the Singaporean bank DBS. It offers features like checking the transaction status, reporting an issue, etc. 

5. Nomi 

Nomi is available to Royal Bank of Canada customers. It can process requests in text and voice and support customers in more than 12 languages. The main features are similar to the ones mentioned before — tracking spending habits and budget recommendations. 

6. Amy 

Amy provides support for HSBC Bank customers in England. With Amy’s help, users can check their accounts and transaction history and get answers to the most common questions. 

Wrapping up

Given how fast the world is getting used to artificial intelligence technologies, AI chatbots are essential in the banking industry. They not only contribute to the prestige of the company but are also very efficient in all processes. AI chatbots can help to create personalized customer experiences, automate routine tasks, and enhance security and compliance. And there are high hopes that chatbots will become even more sophisticated with more interactive interfaces and integration with other edge-cutting technologies, further strengthening the capabilities of chatbots and making them even more helpful for the banking industry.