Why banks and insurance companies are turning to chatbots

Every industry today is experiencing an increase in consumer expectations and demands and the best solution to answer that on-going challenge is by utilizing the most advanced tech solutions such as chatbots, machine learning, natural language processing, and artificial intelligence.

Well, the same can be said for banks and insurance companies as they are rapidly increasing the use of these advanced technologies to deploy new solutions and test new applications with the main goal aimed at providing their customers with the ultimate digital customer experience.

In fact, these organizations are launching industry-specific chatbot solutions powered by artificial intelligence. Leveraging this innovative technology helps banks and insurance companies tend to the needs of their increasingly tech-savvy customers while reducing costs at the same time.

The main goal of adopting this technology is speeding up transactional support and providing a quick and satisfying service. The reason why this is so is that banks and insurance users expect a personalized service while using offline and online channels during their customer journey and chatbots are proven to provide users with personalized and quick interactions.

Chatbots in banking

Banks use chatbots for numerous reasons:

  • Cost savings – when compared to human counterparts, chatbots are more cost-efficient. With intuitive bot building platforms such as SnatchBot, it’s possible to build an industry-specific chatbot for free and with no coding knowledge. These bots can be deployed across multiple channels of communication that consumers prefer, and they don’t require costly data storage.
  • Ease of use – when compared to traditional banking apps, banking bots are easier to use as they are more intuitive. They learn from each interaction thanks to machine learning and AI and provide a more personalized experience with each new interaction.
  • Conversational interface – instant chat is simply much faster than a phone call. Since modern bank users are into personalization and quick services, a banking customer support chatbot is the best way to give them both.
  • Financial advice – chatbots are great when it comes to tracking user data and gathering information. They don’t make mistakes, they don’t forget. These advanced digital assistants can provide valuable financial advice to users allowing for improved money management and financial recommendations that are tailored according to the budget, credit scores and spending habits of a user.
  • New account generation – each online user is a potential prospect if they’re pointed in the right direction and chatbots can conveniently increase conversion rates and customer engagements by simply starting a friendly but informative conversation with every visitor of a bank’s website.
  • Digital 24/7 support – since modern consumers are always online, the same can be expected from customer support and that’s exactly where chatbots excel. They are digital assistants who are available 24/7 and are great at attracting and retaining potential prospects which give banks a competitive advantage.

Put simply, banks need AI-powered chatbots because they help improve customer experiences. They are also extremely useful when it comes to the ever-changing customer expectations. The most common use cases for banking chatbots are:

  • Personal banking services – chatbots improve overall customer engagement and satisfaction
  • Impeccable customer support – a more personalized approach and 24/7 availability
  • Customer feedback – smoother workflows, improved business efficiency, easier access to personal data, improved internal communication
  • Automated fraud prevention
  • Analyzing user engagement
  • Ultimate user experience

Chatbots in insurance

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Today, legacy product lines and massive national brands dominate the insurance market. The problem is that these haven’t evolved with the rest of the world. This disrupts the entire industry on every segment. Fortunately, a majority of insurance companies see a way out of this situation by using artificial intelligence and chatbots.

These technologies are already transforming the industry, helping insurance policyholders, brokers, and carriers drive savings. After all, insurance companies want the same thing as banks: to build customer loyalty in a thriving product ecosystem.

To be able to do that, they need a little digital help and that’s where chatbots kick in. Industries today are all about empowering their consumers. The best way to do so is by allowing them to manage their policies. This will make them engage with insurance companies even more.

Therefore, everything has to be more transparent for the consumer, to provide them with the necessary initiative. That’s why the insurance industry is welcoming natural language processing, artificial intelligence, and chatbots into its fold. First of all, insurance chatbots tend to the increasing demands in real time.

Then, they improve workforce productivity. Just like in banking, insurance chatbots enhance customer experiences, reduce costs and improve business efficiency. Since insurance companies are aware that their users demand personalized experiences, they are adopting new technologies at a rapid pace.

Nowadays, insurers have multi-channel, frequent interactions with potential prospects and this requires them to be transparent and flexible. By using insurance chatbots, insurance companies are able to engage with the user on his or her own terms, but more importantly, to tend to their exact needs.

There’s no denying that chatbots improve the quality of customer service and make insurance companies more competitive. The best thing about insurance chatbots is that they provide insights into what users really want.

Buying an insurance policy is a life-long investment. It’s an important decision and, as time goes by, the needs of an insurance user change.

To make sure that this transition goes smoothly and without any problems, insurance companies use chatbots to track user data and gather valuable information to cater to those changes and provide the right solutions at the right moment.

On the other hand, insurance chatbots make the entire first interaction between a potential prospect and the insurance company much easier than before.

It’s possible now to buy a policy with nothing but your photo. All of this is aimed at making engagement easier, less painful, and eventually more successful.

With all this in mind, it’s absolutely safe to say that AI and chatbots are playing an increasingly important role in banking and insurance, but also beyond those two industries. These technologies have become a key part of every market in the world and they help provide the most excellent way to tend to consumers’ needs but also to educate them and even empower them to improve the overall quality of their lives.

Images by Mohamed Hassan / Jarmoluk / Steve PB