It’s no secret that artificial intelligence (AI) continues to impact United States businesses. As noted in the recently published U.S. Chamber of Commerce report, Empowering Small Business: The Impact of Technology on U.S. Small Business, AI systems can not only enhance efficiency, save time and improve decision-making across business operations, but they can also optimize resources, personalize customer experiences and provide valuable insights on market trends.
As with other industries, artificial intelligence — specifically AI — is making its mark in banking. Across the banking industry, the technology could deliver value equal to an additional $200 billion to $340 billion annually.
Consumer Preferences in Banking
The U.S. financial system consists of more than $23 trillion in assets with a banking market projected to grow to $.67 trillion in 2028. Roughly 4,614 banks in this country employ approximately 2,595,852 people and not only cash checks and deposit funds but also offer an array of other products and services, from loans and credit cards to insurance and investment services.
Not all banks are the same, either. There are central banks, which set interest rates and control the flow of currency in a country along with supervising commercial banks. The central bank in the U.S. is the Federal Reserve. Then you have retail banks, which offer members of the general public financial products and services such as bank accounts, loans and credit cards. Other types of banks are:
- Commercial banks
- Investment banks
- Regional banks
- Community banks
- Credit unions
Banks in the U.S. encounter numerous challenges, including higher interest rates, reduced money supply, a decline in branch visits, fraud, cybersecurity, changing regulations and potential mergers. Although the industry is highly competitive, more than 2,500 branches across the country closed in 2023.
Another big obstacle many financial institutions are attempting to overcome is the shift to digital banking and consumer expectations for prompt and personalized customer service. According to one report, 72 percent of customers want immediate service. However, 64 percent of customers report that their mobile banking app does not enable them to solve a customer support inquiry fast — if at all.
What is Conversational AI in Banking?
An increasing number of U.S. banks are employing conversational AI to provide quicker and more comprehensive customer service. Digital banking has already become the most common way consumers bank, with 78 percent of adults preferring to bank via a mobile app or website. More than 90 percent of consumers view this method of banking as an important factor in choosing the financial institution with which they do business, equal to security, fraud protection and quality customer service.
Conversational AI adds another layer of convenience and customization for consumers by responding to basic inquiries, providing 24/7 access to financial information and support, offering personalized recommendations for their accounts — even enabling them to open a new account. Although previously used mostly for tasks like fraud detection and risk assessment, this technology lets customers more promptly make transfers, pay bills and complete other banking tasks.
Applications of Conversational AI For Banking
Financial institutions that employ conversational AI can build detailed customer profiles through digital conversations, instantly retrieve information about a customer’s account and help them complete tasks without delay. This frees up time for bank employees to handle more complex customer requests or simply provide proactive support.
Other practical applications of conversational AI in banking consist of:
- Personalized financial guidance
- Enhanced customer onboarding
- Streamlined document management
- Advanced query analysis and intent detection
- Efficient loan processing
- Multilingual support
- Improved know-your-customer (KYC) processes
- Targeted sales and cross-selling
Advantages of Conversational AI Solutions in Banking
Benefits of utilizing conversational AI in banking abound, both for customers and financial institutions. Some of the primary perks include:
Increased Customization and Personalization
That 24/7 customer support we mentioned earlier in this blog can be personalized through conversational AI, allowing for more efficient service and interactive communications and proactive consumer engagement. By being tailored to a specific customer, it also leads to opportunities to up-sell and cross-sell products.
Enhanced Customer Satisfaction
Through fast access to account information, conversational AI can resolve more than 90 percent of customer queries in under than two minutes. Reduced wait times often result in customers being more satisfied with the financial institution with which they are doing business.
Improved Resource Utilization
The scalability of cost-effectiveness of conversational AI solutions means banks can use them as they grow, even without adding new employees or branches. Employees instead of performing routine tasks can focus more on value-add activities, thereby increasing their productivity.
How Revmo’s Conversational AI Can Benefit Your Financial Institution
At Revmo, we are at the forefront of blending conversational AI with the art of sales to streamline lead generation, engagement and conversions. Our personalized conversational AI platform is designed to enable your bank to improve customer satisfaction, elevate sales performance and maximize efficiency. Plus, it allows you to create pre-determined touchpoints with every customer to deliver a remarkable customer experience. Contact us today to request a demo!
