The BFSI industry has always been a frontrunner in embracing the latest technology. However, just implementing internet banking and fast transaction apps is not sufficient to create a lasting customer experience. 

Banks, Insurance and fintech organizations are yet to provide top-notch instant solutions, personalized and relevant experiences  to enhance their customer-centricity. 

Traditional banking procedures have swiftly become obsolete because of new governing laws, increased security threats due to fraud, and incremental pressure from consumers for a better digital customer experiences. 

The implementation of Conversational AI in banking and finance can transform an operationally intensive service delivery model into an innovative and scalable model and help build self-service and hyper personalized solutions for customers.

The importance of Conversational AI in the BFSI Industry

A Conversational Banking platform combines chatbot technology with live in-app messaging technology, creating a dynamic self-service channel for customers to leverage when in need of assistance. 

This customer service strategy limits several touchpoints a customer must complete and  bridges the gap between convenience and personalized customer service.

With conversational banking, customers have access to 24/7 support, multilingual options, and more helpful answers to their questions. 

An effective conversational banking platform also connects multiple channels, systems and CDP’s to create a unified customer portal that helps financial institutions understand their customers better. 

Banks and Insurance players that have implemented successful conversational AI systems, report higher customer engagement metrics and more productive employees.

BFSI companies may collect crucial data about customer objectives, intents, financial behavior, and wants as they grow and expand their conversational banking operation while informing the customers about tailored services and offerings.  

Banks can act strategically and enhance employee productivity by efficiently utilizing conversational interfaces. Conversational banking incorporates a hybrid approach to customer service, allowing representatives to focus more time on other business areas to make a more significant impact. 

Another critical benefit that conversational interfaces provide to financial and banking institutions is a significant decrease in customer churn rates. Most queries are resolved in less than two minutes using conversational AI. Thus, making customers happy and eliminating bottle necked processes.

The Changing Consumer Behavior in the Banking Industry

The global banking industry has witnessed significant and considerable changes over the last few years. Due to the growing use of mobile devices and intensive development of IT, customer habits and preferences have shifted to digital channels. In reality, the presence of offline branches is no longer as significant a factor as it once was. 

Large banks highlight the development of RB (remote banking services) as one of the key priorities, meanwhile, several fully digital players have emerged. 

Consumers are diverting to mobile apps with the increased availability of mobile devices and remote banking. 

Some major BFSI organizations provide services that indicate a greater demand for personalization of services. Consumer expectations for service level, speed, flexibility, and personalization have increased. In today’s contemporary and technologically advanced world, customers expect BFSI companies to offer personalization and convenience just like they get from Amazon and Netflix. 

Multiple banks, fintech players and financial institutions have successfully implemented conversational AI to level up customer experiences, drive new acquisitions and retain existing customers.

Here - we take a look at the top 15 ways conversational AI is transforming the future of the BFSI Industry.