June 07, 2018
Razorthink published in AI Informed

Conversation Banking - How AI is Invigorating Customer Experiences

Conversation banking is an AI driven, customer facing strategy that streamlines interactions with digital consumers and is becoming a preferred method of engagement. Millennials and GenXers are accustomed to being serviced by technologies that work on a voice or text model, such as Amazon Echo, Google Home and Apple HomePod. Interfaces powered by AI, machine learning and natural-language processing (NLP) are being adopted by an increasing number of financial organizations.   

The key to positive customer experiences with technology interfaces is to make the technology more human. Conversational technology utilizes real-time data analysis to create contextual conversations. The process leverages previous interactions with the customer and data gathered on them from hundreds of points across a wide range of platforms, creating an individualized profile which can be communicated with by the conversational AI. This leads to hopes that “conversation” can become as strong a pillar of financial services as local branch and mobile banking.

Conversational User Interfaces (CUI) introduces a new level of personalization shifting the customer’s perception from transactions to interactions. Digitized banking becomes “humanized” using AI to create consumer acceptance with seamless experiences that provide speed and satisfaction. Institutions which can best integrate and automate conversations contextually across new channels are in the position to digitally transform their service ecosystems with conversational banking.  According to Gartner, 85% of all customer service interactions will be handled without direct human interaction by the year 2020.

AI driven machine and deep learning algorithms can help chatbots communicate as well as humans do. These bots can understand user requests and communicate via web and mobile-based interfaces. BFSIs have vast conversation logs to help analyze and predict what customers want. Each question a customer asks is matched with the best possible answer, and over time additional logs and the customers’ reactions are added to the data so bots can learn and map questions to answers with greater accuracy.

Neural networks can help by using weighted connections calculated from repeated iterations captured during data training, amending the weights continuously and amending the weights for higher levels of accuracy. A visual representation of the customer’s omni-channel journey, connecting conversations, actions, and transactions across platforms and devices to create a well-known profile that is easy to predict and communicate with.

Conversational banking is the future of communication between banks and customers, enabling brands to create successful interactions and in customers having their expectations met. The bottom-line is a reduction in costs and resources, and the provision of the best possible experience in every step of the customer journey.