Chatbots are Popular, But are They Up to the Task?

How Financial Institutions Can Overcome Common Chatbot Shortcomings

How Financial Institutions Can Overcome Common Chatbot Shortcomings

Financial institutions have increasingly been utilizing Chatbots over the last few years. But when the stay-at-home orders hit during the pandemic, adoption accelerated dramatically. Research from Cornerstone Advisors revealed that heading into 2020, just 4% of mid-size banks and credit unions had deployed a chatbot. By the end of the year, that percentage had more than tripled to 13%. Moreover, the chatbot market is poised for additional growth. Research and Markets forecast that the global chatbot market will reach $5.63 billion by 2023.

Chatbots Modernize the Customer Experience

Banks and credit unions are using chatbots to initiate customer engagement. They are a helpful tool in modernizing the customer experience. For example, during the pandemic when bank branches closed, chatbots were hugely valuable in handling frequently asked questions (FAQs). Customers can access information 24/7, and it eliminates them filtering through websites looking for information.

Chatbots are a terrific addition to a bank or credit union’s technology arsenal. Customers love that they can quickly get answers to simple inquiries such as, “What is the balance of my savings account?” or “Has check #456 been cashed?” And they can be a lifesaver for IT requests, such as resetting passwords during off-hours. These types of questions are the majority of inquiries banks receive. Therefore, automating the response process helps banks enhance customer service and staff productivity.

Limitations Abound

However, with all the operational efficiencies and frictionless 24/7 customer service opportunities chatbots offer, there are real limitations. For instance, chatbots cannot engage with customers on the meaningful, personalized level that customers crave today. Genuine customer engagement requires a digital customer engagement platform that guides bank and credit union staff through deep customer conversations.

Digital Engagement Platforms Uncover Customer’s Current Financial Needs

With digitally guided conversations, bankers can uncover customers’ current circumstances and needs, which can be analyzed and deliver best-fit- financial product recommendations that address customers’ precise requirements in real-time. Furthermore, an intelligent digital engagement platform isolates which recommended products were not acted on by the customer. For example, if the dynamic conversation guide revealed that the customer was a fit for an automotive loan for a planned car purchase but had not taken out the loan. Details regarding that potential auto loan flow to the marketing and sales teams for highly targeted marketing campaigns.

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Guided Conversations for Financial Institutions

Discover how to transform every banker, member specialist and website into an expert as they conduct customer conversations using customized, dynamic, digital dialogue guides.

Boost Marketing Execution Performance

Digital engagement platforms capture all conversations, giving sales and marketing data on every customer interaction and related product. Additionally, digital engagement platforms deliver decision-making data to bank management on sales and marketing operations to improve product offerings, processes, and marketing efforts. As a result, banks derive improved productivity, increased brand loyalty, and more successful account openings when implementing digitally guided conversations.

Integrating Chatbots and Digital Engagement Platforms to Get to Next Level Bank Performance

Banks and credit unions integrate digital customer engagement systems with their chatbots to take chatbots to the next level. For example, Royal Credit Union combined digital guided conversations with their chatbot Val. This enhanced technology gave Royal Credit Union the chance to ask members a few quick questions, then in real-time, provide them with other product options that might be a better fit.

“These are products and services they wouldn’t have seen without this added functionality.”

–Pam Haller, EVP, Chief Digital Experience and Marketing Officer at Royal Credit Union

“Chatbots are exciting, and everyone wants to talk about AI. But at the end of the day, what this is really about is building relationships. So, we have to make sure we do not lose the human-centric approach as we add technology. It’s about listening to your member, understanding their interests, and seeking to engage them in a meaningful relationship based on the products, and services that they state are of interest,” continued Haller.

Chatbots will continue to be a popular customer support technology for financial institutions. But for banks and credit unions to deliver superior customer engagement and get the best results they can from their technology investments, a customer engagement platform is their best bet. Engage and meet the needs of customers and members.

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