Dorota Jasińska
Andrzej Puczyk
In recent years, implementing AI in many industries has facilitated user experience on many levels. One of the cases of AI visibly helping customers is chatbots. Now, customers can get help 24/7 thanks to the advanced algorithms trained to find a solution to their problems.
Evolution of AI in banking technology
AI has greatly influenced the banking industry on many levels. This includes the modernization of data practices by moving to the cloud and integrating AI into the foundations of banking services.
AI was first introduced into banking in 1980 with expert systems. They focused on market predictions and customized advice. The systems minimized human errors in decision-making by acting as experts.
Nowadays, the role of AI has expanded to personalized customer service, fraud detection, risk management, and more. AI combines massive data analysis, machine learning, and NLP to provide real-time banking services.
AI allows for a deeper analysis and better understanding of customer behavior while automating the banking process. Bank of America introduced a 24/7 assistant to help their customers in 2016. Erica is a chatbot that has evolved since its implementation.
Oliver Wyman provided a comprehensive analysis of the AI Revolution in Banking, along with examples of AI uses of digital banks:
We’re witnessing a digital transformation in banking that drives the services to offer personalized products and services. Oliver Wyman’s study of major banks from all over the world that implemented AI in the form of a chatbot, digital adviser, or virtual assistance showed enhancements in cross-sales, customer service, risk management, and more.
Chatbots in banking
Why are banks using chatbots? Many financial institutions have implemented some type of AI customer assistant to offer a 24/7 service to their customers. Such notes can answer queries about transactions, account details, and many other frequently asked questions without the need to involve humans. Their responses are fast, accurate, and lift the burden of performing repetitive tasks from employees. Moreover, they fill in the availability gap for out-of-office hours.
With time, the performance of chatbots can be improved as they learn from interactions. Thanks to the enhanced efficiency of customer service, banks can shift the attention of their employees to more complex customer needs that chatbots can’t handle.
What’s the difference between chatbots and virtual assistants? Chatbots include knowledge they use to provide answers. They can be used as guides and helpers to answer a user query. However, their scope is defined and, at the same time, limited by specific algorithms. Virtual assistants can integrate with other systems and services, which allows them to provide a wide range of help. Still, banks often combine both to provide users with a wide range of services, and the names chatbot and assistant are used interchangeably.
Chatbots can be used, for example, to guide a user through a process such as disputing a transaction. Virtual assistants, on the other hand, can handle bill payments or money transfers on request.
Ceba/Commonwealth Bank
Ceba is an AI-based chatbot capable of helping customers with hundreds of tasks. It can assist in activating a card, checking account balances, money transactions, and more. Ceba is available 24/7 to all customers and offers instant responses to everyday banking tasks and issues. The bot can show the customer how to open a new account, identify a transaction, or aid in locking a card.
Citi Bot SG from Citi
Citi Bot SG is a chatbot service that can help customers with basic account information through Facebook Messenger. The bot operates 24/7 and offers real-time responses to queries about account balance, transaction history, card payment information, etc. It learns through user feedback to minimize the need to contact human agents. As the bot operates through the Messenger app, OTP is required to ensure data privacy.
Clari from TD Bank
TD Clari is a chatbot available within the TD app that is capable of giving instant responses to many typical questions about the bank account. The bot is available 24/7 for all customers. It can not only answer questions but also assist with tasks such as money transfers, paying bills, and finding the bank’s location nearby. Clari can also analyze spending habits by dividing transactions into categories.
Eno from Capital One
Eno is an assistant for Capital One customers. The assistant helps protect accounts and credit cards by monitoring transactions and sending notifications. It can also help customers track their spending by checking recurring charges. The chatbot is available 24/7 and can be used to check account balances or answer questions about the account. Eno is available through a mobile app and can send notifications, text messages, emails, etc. The bot can also create virtual card numbers when shopping on a desktop computer.
Erica from Bank of America
Erica is a virtual financial assistant for Bank of America. The assistant includes a live chat with a specialist and offers personalized insights on finances. Erican can help replace lost or stolen cards, check account balances, or get account information. It’s available 24/7 and can suggest investing and saving strategies or refer to a specialist. Erica notifies customers about duplicate charges, sends bill reminders, and monitors recurring charges. It can also be used to review updates on spending and view account past transactions across accounts.
Eva from HDFC
Eva is a 24/7 personal assistant for HDFC customers. The chatbot allows users to open a savings account, check its benefits, find the bank’s branches, and more. Eva can understand voice commands. The bot can also help find the right personal and business loan offer or assist in getting a loan on one’s credit card. Eva can also assist in the card activation process and find the credit card suitable for the customer’s lifestyle. It can also check the customer’s eligibility for different types of loans, like car and home loans.
Haro from Hang Seng Bank
H A R O is a virtual assistant chatbot with AI abilities. The chatbot is available on the bank’s website, in the Hang Seng Mobile App, or on WhatsApp and can handle banking services and conversations 24/7. Haro can assist in money transfers and bill payments, foreign exchange, and credit card settlement. It also offers help in general banking services, like account balance diagrams and reminders about changes in the balance. It can also answer questions about banking, investment, insurance, and loans.
NOMI from the Royal Bank of Canada
NOMI is an intelligent assistant available in the RBC Mobile app and RBC Online Banking. The bot offers a few services, such as NOMI Insights, NOMI Find & SAVE, NOMI Budgets, etc. It can, for instance, analyze monthly cash flow and categorize transactions. The assistant can also help in finding ways to save money using predictive technology. It’s also capable of calculating budget recommendations based on the customer’s spending habits. NOMI also sends notifications about transactions, updates, and reminders about financial operations.
Milla from Millenium Bank
Milla is an automatic mobile app assistant for Millenium Bank’s customers. The assistant can help make a bank transfer or top up a phone or prepaid card by preparing a form that only needs confirmation. It can also assist in finding a transaction in history. Customers can also ask about the estimated time of transfer finalization. It operates in writing and speaking. The app is available only in Polish.
The future of AI assistance in banking
The use of chatbots is one of the ways of implementing AI in financial services. In the beginning, the chatbot capabilities focused on algorithmic responses to queries. Now, they’ve evolved to include smart and personalized assistance in various topics. It seems the advancement of technology will keep the shift from repetitive customer service-related tasks to bots. With broader capabilities, AI assistants could help in more complex tasks in the future and offer custom financial solutions for users. Many financial institutions have already noticed the potential of chatbots, and their implementation seems to be spreading widely.
