[The last post in this blog series covered contactless payment solutions in brief. Now, we will take a deeper look at emerging conversational banking.]
The more naturally we interact with a system, the greater our experience. The financial industry, particularly retail banking, is striving to provide that “greater” experience to their customers. But, when it comes to banks, the problems involved in achieving this are enormous. Banks are having a hard time providing highly personalized services to their customers at a large scale. This is solely due to banks’ struggle to understand them even at the most basic level. When it comes to digital channels, the banks weren’t able to exceed the expectations of the customers in terms of experience as it’s compared with the experience provided by top applications such as Facebook or We Chat.
The Banks and Fintech companies are trying to tackle this problem by introducing Conversational Banking to their customers. Conversational Banking allows customers to ask questions about their financial accounts, initiate transactions and get financial advice in their natural language via voice and text. It helps retail banks engage deeply with customers by providing personalized and proactive services. This new technology widens banking into existing popular communication channels such as Facebook Messenger, We Chat & SMS, along with emerging voice-based technologies such as Google Home and Amazon Alexa.
This technology has the potential to save transaction costs up to 90% by automating service tasks, cutting down inbound calls to call centers and resource consuming branch operations. It can also exponentially increase the customer satisfaction and revolutionize the way people do banking. But huge challenges ahead for banks and Fintech companies are engineering user experience for the conversational platform and its AI backend. Conversational services will replace web browsers and apps as our default portal for the Internet. The Internet is changing again. Banks need to adapt. Remember, technological change is exponential, not linear.
About Market Simplified: Market Simplified is a thought leader in handcrafting custom solutions by continuously innovating and simplifying finance. We have maximized the revenues of industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank and National Stock Exchange of India by providing enhanced and sustained user engagement through Experience Engineering.
About The Author: Gokoulane Ravi is a foodie, technology enthusiast, and a developer turned marketer with more than 5 years of experience in the space of mobility. When he is not working, he likes to read, write, run and cycle.