Chatbots are popular, but are they up to the task?

How financial institutions can overcome common chatbot shortcomings

Financial institutions have increasingly been utilizing Chatbots over the last few years. But when the stay-at-home orders hit during the pandemic, adoption accelerated dramatically. Research from Cornerstone Advisors revealed that heading into 2020, just 4% of mid-size banks and credit unions had deployed a chatbot. By the end of the year, that percentage had more than tripled to 13%. Moreover, the chatbot market is poised for additional growth. Research and Markets forecast that the global chatbot market will reach $5.63 billion by 2023.

Chatbots Modernize the Customer Experience

Banks and credit unions are using chatbots to initiate customer engagement. They are a helpful tool in modernizing the customer experience. For example, during the pandemic when bank branches closed, chatbots were hugely valuable in handling frequently asked questions (FAQs). Customers can access information 24/7, and it eliminates them filtering through websites looking for information.

Chatbots are a terrific addition to a bank or credit union’s technology arsenal. Customers love that they can quickly get answers to simple inquiries such as, “What is the balance of my savings account?” or “Has check #456 been cashed?” And they can be a lifesaver for IT requests, such as resetting passwords during off-hours. These types of questions are the majority of inquiries banks receive. Therefore, automating the response process helps banks enhance customer service and staff productivity.

 

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