4 Reasons Why Conversational AI can help consumer banking operations

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The internet has helped handle most of the customer-related queries of the banking sector. It’s all thanks to conversational AI everywhere, including call centers to loan servicing.

It mainly involves using chatbots to clarify most customers’ queries and doubts, smart automation, and intelligent decision making. The chatbots are programmed to help solve their consumer banking operations’ problems for optimal customer satisfaction, and in the process, helps promote repeat business.

What exactly is conversational AI?

Conversational AI is a two-way technology based on open communication protocols and real-time feedback. It uses linguistics, computer science, information engineering, and artificial intelligence to help induce a sense of natural language conversations among machines.

You can understand conversational AI better if you are familiar with Google Assistant and Amazon Alexa. The significant benefit of these applications is that there is no chance of any ambiguity or undefined boundaries in a conversation.

The major conversational AI applications include:

  • Machine learning (MI) focuses on context and comprehension of human interaction.
  • Natural language processing (NLP) focuses on the internet and the execution of specific tasks.
  • Natural language Generation (NLG), revolving around natural conversational responses.
  • Natural Language Understanding (NLU) revolves around precise grammatical and linguistic rules used in communication.

How conversational AI can help banking consumer operations?

Here’s why conversational AI is so popular, especially in the banking sector.

Chatbots can do things like listen, respond and automate specific behaviors only based on the user interactions. They can accordingly both answer some basic questions and also direct customers to different departments. The chatbots are also programmed to make appointments just by abiding by clearly defined boundaries.

However, in addition to all of this, the technology can help reduce handover friction and operational costs and minimize any possible customer confusion with a touch of sensitivity. In addition to this reason, the following reasons define how essential and necessary conversational AI is to the banking sector.

  1. Improves the speed of customer service

Quicker customer service not only improves banking efficiency but also leaves the bank with happy customers. Besides, problem-solving and data entry jobs are performed much more quickly and accurately than manual operation.

  1. Improved customer engagement

Conversational AI also helps improve a bank’s customer engagement width. Inbound and outbound web-based, SMS, and voice-activated channels will direct customers to live client representations in the banking sector as necessary.

  1. Improved customer understanding

Chatbots are programmed to understand conversations and put inquiries to context. Chatbots can identify and understand enough specific terms to convert voice calls to text and even direct emails through departments for better responses.

  1. Minimized bank operational costs

Most importantly, conversational AI helps reduce a bank’s running costs. It automates interactions at scale and slashes high-volume drivers through messaging apps, support tickets, and quote processes, making employees happy and saves on most levels.

Of course, there are some complex tasks that only humans can perform. Other than that, conversational AI can manage most consumer banking operations to facilitate improved service speeds, contextual understanding, and engagement, along with massive cost savings. For more information visit lpors.com.