Chatbots - How Far Can We Go

Have you wondered how a bank branch will look like in the digital age? Most likely the old fashioned brick- and-mortar locations will be totally reinvented, as financial institutions process much more transactions digitally than in branches. Majority of customers carry a small bank in their pocket in the form of smartphones with access to the ample functionalities of their web-banking application, they only need to visit a branch to get some cash or ask for expert advice.

The current invasion of chatbots in fintech will change the game even further. The enhancement of chatbots will make them more proactive, helping users to avoid fees and optimize their money management with real time advise on which bank products suits best their spending behavior. And this is just an example of many.

Fig. 1. Building an informational bot using Amazon Lex

If we go into more details, chatbots can speed up the authentication process and improve account security by using voice extracts from actual conversations to verify and complete a transaction. Or they send message to a user in order to see if the user’s location coincides with that of a transaction to avoid unauthorized charges.

Some of the most advanced bots focus on saving your money by analyzing your spending pattern and suggesting cost reduction actions like canceling membership that is no longer used, or even recommending investment options based on credit history or risk profile. Those analytics provide important metrics for internal MIS and IT departments of bank headquarters, where information will be more readily available for setting and evaluation of strategic business objectives.

All this automation is quite cost effective as bots work 24/7 and can services huge amount of users that need more insight or suggestions, leading to improved customer service and better customer experience. The next step would be to build up on the level of maturity that chatbots have reached today, so that they can handle tasks and queries that fall outside of their functional domain.