Banking: 3 ways Artificial Intelligence is improving customer experience

Max needs a personal loan to renovate his house. The thought that he needs to drive to the bank, wait in queue, and fill lengthy forms to get a loan sanctioned is daunting. He would instead pick up his mobile to get the job done. 

Do you also feel the same way? I do, I am a mobile-first person.

Banks are listening to us, and they are improving the customer service experience with Artificial Intelligence. It is a win-win situation. I get my millennial way of banking, and it also reduces the operational costs for banks. This article explains 3 ways in which banks use AI to improve customer service.

Chatbots

Chatbots are AI programs that replicate human conversation in the form of text or audio. Since the initial beginnings, Chatbots have come a long way with Machine Learning (ML) and Natural Processing. ML and Natural Processing allows them to learn from their interactions and hold human-like conversations.

Chatbots are designed for a specific and defined number of tasks. If a user’s query was within the predetermined flow, customer experience is favorable, but if the question is outside of the bot’s predetermined flow, the customer experience could deteriorate. Hence Chatbot has its limitations, and this where Conversational AI comes in with better capabilities.

Conversational AI

Conversational AI uses Natural Learning Processing (NLP) and Natural Language Understanding (NLU) to enable dynamic dialogues between customers and machines. For example, what is my balance? How can I change my pin? This AI model interprets concept and sentiment before delivering an answer.

The dialogue can be either text or voice. When the conversation is beyond the technology’s ability, it is transferred to a person for customer satisfaction.

Virtual Assistant

Virtual Assistants have more excellent intelligent capabilities than a simple Chatbot. They develop their cognitive abilities through advanced Natural Language Interface (NLI), which efficiently processes the same query when asked in a thousand different ways.

In May 2018, Bank of America launched an AI-driven virtual assistant called “Erica.” Erica can help customers access information, transfer money between accounts, locate the nearest branch, to name a few. Her abilities are continually evolving to provide their customer with better services. 

As of March 2019, Erica has 6 million users. Amy of HSBC is another virtual assistant that offers instant resolutions to its customers 24*7. She understands English, with traditional and simplified Chinese as well. 

Conclusion

Customer Service is one primary area where AI is widely used. Banks use AI in different forms to deliver better services to their customers and to reduce operational costs. Current AI applications handle a great deal of monotonous work and make it easier for humans to deal with more critical tasks.

As these systems learn, they are evolving to handle more complex tasks. Ultimately, AI will enhance banks’ customer experience and improve the ways banks serve their customers. With AI in customer service, we have a faster, efficient, and secured banking system. 

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