Companies must adopt new technologies to fuel their operations in an increasingly digital world. Organizations in the financial industry are no exception.
One technology many companies are investing in is the automated chatbot. Customers expect nothing but the best and fastest service from their financial institutions, and these bots can help deliver that promise. They’re becoming more widely used in the financial industry, and that trend will likely continue. Statista research suggests that the global chatbot market will reach around $1.25 billion by 2025.
Here are some of the benefits of chatbots in the financial industry.
1. Generates Cost Savings
It’s important to note that the cost of deploying automated chatbots is much lower than the savings generated long term. They are specifically designed to answer frequently asked financial questions, allowing employees to focus on more meaningful tasks.
Because chatbots can take over tasks of human agents, it helps companies boost revenue, too. Banks and other financial services can garner new clients with chatbots because they provide great customer service and top-tier support. However, they are not expected to replace human workers — they work best when used as a complementary feature.
2. Improves the Customer Experience (CX)
Research shows that more than one-third of consumers want chatbots to become more widely used because it’s an increasingly preferred method of contacting businesses. These bots offer a viable solution to a common problem customers face — waiting on hold with customer support for a long time.
Enhancing the customer experience (CX) is a top priority for many companies in the financial sector. Chatbots can guide people through a website, assist with basic administrative tasks, provide financial advice or connect customers to the appropriate customer service representative.
3. Gains Valuable Customer Insights
Companies in the financial services industry that leverage chatbots can gather user feedback, providing greater insight into customers and their expectations. Conversations from chatbots serve as a detailed record of pain points so companies can improve their products or services.
Customer behavior, preferences for and feedback about products or services, and common complaints can all be logged in a chatbot conversation. Financial companies that use this information to draw inferences about their clients can engage with existing and potential customers in the future.
4. Provides Better Promotion and Cross-Selling
Large amounts of data are collected when customers interact with chatbots. If harnessed correctly, bots can use that information to offer personalized promotions or tailored services.
It’s also possible to gather information from customers right off the bat and build a personalized profile for them. Companies can then offer specific products or services that benefit their unique financial situations. Chatbots are a key tool for marketing, which financial institutions should prioritize.
5. Increases Sales
Customers visiting a financial company’s website for the first time can be greeted with a chatbot, guiding them to products and services that will kickstart their journey in interacting with the brand. Essentially, this first interaction guides them further down the sales funnel and can generate relevant sales leads for companies.
Accenture suggests that 57% of businesses believe chatbots deliver a large return on investment (ROI) for minimal effort. They can also offer new and existing customers discounts to encourage purchases of products and services.
Expect Chatbots to Become Mainstream in the Financial Sector
The future of the financial industry will likely rely on digital technologies. Chatbots are becoming increasingly popular across various industries, and it’s only a matter of time until every financial institution has one greeting their customers when they visit their website. Expect them to become mainstream in the coming years.