Hyper-Personalised Banking: 3 Merits for Linking with Conversational AI

There have been strict lockdowns in many parts of the world since the outbreak of the COVID-19 virus. The financial and banking sector has witnessed a paradigm shift from traditional process to digital domain. It has finally started investing in the Artificial Intelligence (AI) to get in touch with the tech-savvy existing and potential users. The employees are already in excess pressure due to an increase in competition in the banking industry. The introduction of AI algorithms through websites and mobile applications has accelerated customer engagement and conversions effectively and efficiently. There are various ways in which conversational AI fits in the hyper-personalised banking for hassle-free customer experience.

What is hyper-personalised banking?

Every sector follows a popular policy— The customer is always right!, which means customer problems and queries should be dealt with utmost care by the company. Thus the banking sector focuses on hyper-personalised banking experience to the tech savvy customers. Every customer has unique financial queries and they expect a smooth process to receive a solution within a short span of time. Adopting hyper-personalised mode, the banks enable two-way communication by delivering personalised services and offering. It is a type of customer interactive software which helps to cover mass customisation by harnessing real-time data of all customers in a particular bank leading to customer loyalty. Human-centric approach is inculcated in AI software through Natural Language Processing (NLP) techniques.

Four reaping benefits of hyper-personalised banking system are:

1. High number of pages conversion

2. Increase in customer trust and loyalty

3. Reduction in sales time

4. Providing services to ease decision-making process

Top 3 merits for linking Conversational AI with hyper-personalised banking

1. Reduced frauds and cyber-threats: Online data collection perceives a huge risk of generating fake and unstructured data, which can later on be found as scams, unethical hackers and money laundering. AI conservational tool filters the appropriate and structured data from the users with the help of huge real-time data. This leads to the flexibility of data for anticipating the large scale frauds and scams, effecting the hassle-free environment.

2. Better Customer Engagement: Chatbots are available for banking service to gain better customer engagement. According to the customer's point of view, traditional banking hours collide with the office hours creating a time management issue. Conversational AI tool solves the time management issue through Chatbots, available 24*7. It helps the customers to initiate conversations related to various personalised financial queries and transactions, irrespective of the location, be it in home, office or vacation. In return, with a huge real-time data base, Chatbots provide hyper-personalised solutions and offerings leading to high customer satisfaction while generating more leads. As we all know, higher customer satisfaction brings better customer engagement for a long run.

3. Back-end duties: AI automated machines assist the banks in performing back-end duties such as convincing customers to apply for debit/card cards, loan offerings, cancelling any subscription, promoting exciting offers and so on. AI algorithm helps the employees to focus on other sectors of the bank at the same time, reducing the operation costs and risks.

Everything has an opportunity cost, so does the banking sector with the integration of conversational AI tool. Although the bank gains lead generations and customer loyalty in this pandemic but it also has some disadvantages. Some banks are unwilling to invest in AI machines due to the enormous cost. The evident lack of trained human resources and skilled tech savvy labour force disrupt the commitment of the AI tools. Proper data cannot be found because banks have to respect the privacy policy of the customers.

The digital revolution is transforming the traditional way of banking system in a huge way. Millennials are tech-savvy customers who can deal with several icons and buttons on websites and mobile apps. The older generation needs some assistance with dealing online banking on how to login, check the balance or update information. Conversational AI algorithms and tools are here to help who are in need of smooth information flow in the banking sector within a short period, without visiting physicially.

Hence, we can say that the world is growing 'smartly' over the years. The banking sector is flourishing, even in this pandemic, due to the introduction of the conversational Artificial Intelligence tool in the banking system.