Communication is changing. Customers no longer walk to their corner bank or call their long-time teller for information on their account, they go online. From banking apps to artificial intelligence, banks are responding to customer demand when it comes to ways they can interact and keep track of their money. Chatbots offer customers an efficient, timely, way to get the information they need. With over 2.3 billion smartphone users worldwide, the time to adapt to virtual communications is now.
Deutsche Bank and BNY Mellon are integrating a new chatbot into their Symphony platform to flow between client trading securities on the Hong Kong Exchange (HKEX). The chatbot-to-chatbot communication system replaces manual responses with status updates on the customer trading platform. Processes that could previously take up to three minutes for a single trade will now be handled by chatbots in real-time. This proof-of-concept was created in a 24-hour hackathon by BNY Mellon’s Singapore Innovation Centre team in 2017.
“Our solution now creates a more efficient way to exchange information and allows our clients to put their resources to use in greater value-added areas that would ultimately improve efficiency and profitability,” says Hani Kablawi, CEO of BNY Mellon’s global asset servicing business.
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The first chatbot, Ella, was created in 1966 and followed a rule-based algorithm which mimicked human speech by matching the users prompts to preset responses. Now, chatbots are widespread thanks to artificial intelligence and natural language processing that powers these machines. WeChat, a social media a messaging app, ow has over 1 billion users a month. The use of chatbots is not slowing down, making this AI venture key to the success of many financial institutions.
According to a Juniper Research study, chatbots can drive more than $8 billion in savings by the year 2022 for Retail, eCommerce, Banking, and Healthcare alone. Chatbots offer brands the opportunity to gain new revenue sources and increase their customer satisfaction.
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Plum, a new chatbot, uses open banking to integrate challengers. Using TrueLayer, users no longer have to share their login details with third-party apps, which allows Plum to request data held by Monzo and Starling, via API, without ever knowing the user’s login information. Plum works by connecting UK accounts and monitoring spending patterns, then setting aside an amount of money that can be saved every week. Since its launch in January 2017, Plum says it has saved over £24 million for 130,000 users.
“It’s great to see even more choice for consumers in accessing their money and Plum integrating Monzo securely through TrueLayer shows a glimpse of the exciting potential of open APIs and open banking in general,” says Tristan Thomas, head of marketing and community, Monzo.
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As more banks and financial institutions leverage AI for chatbots, costs are reducing and customer satisfaction is increasing. Providing quick service, chatbots can offer balance inquiries, account details, and loan queries, all without human interaction. According to Gartner, by 2020 chatbots will be handling no less than 85% of all customer service interactions. While many banks and financial intuitions have enacted chatbot technology, not everyone is convinced of their solutions.
According to Ron Shevlin from Cornerstone Advisors, “For banks and credit unions to succeed with AI/chatbots/voice, a more fundamental change in the attitudes consumers have towards the banks and credit unions they do business with – and a fundamentally different type of relationship – is required. A relationship built on a value proposition of advice, not convenience.”
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To learn more about chatbots and their potential impact on the financial industry, watch this webinar.
