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Banking On Chatbot

Soon industry will witness new bot development framework called Conversations as a Platform & it will make bots that understand the human voice and use machine learning to answer questions and deliver useful information

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“Over time, the computer itself — whatever its form factor — will be an intelligent assistant helping you through your day. We will move from mobile first to an AI first world.” Sundar Pichai, CEO, Google

Just Imagine your favourite Whatsapp or Facebook can....
1. Remind you about important payments
2. Periodically inform you about the state of your budget
3. Suggest how to save money
4. Inform you about financial products that are best fitted for you
5. Provide an investment portfolio update
6. Deliver important, time sensitive notifications.
7. Talk to you as your Assistant

Yes, it’s Possible through Chatbots!

Let's explore Chatbot!

Chatbots aren’t inherently new. Automated messaging via SMS has been around for years. So why the sudden interest in Chatbots? Consider the following, for starters. Modern customers spend more time within messaging apps via mobile than they do social media (approximately 90% of their time, actually) Since Chatbots do not require the installation of a native app, there is little to no barrier of entry for your prospects (think: no “likes” or email addresses required) Customers are spending more time on mobile devices than ever mobile & this use will continue to surge dynamically.

Let's Define Chatbots - Chat bots are software products leveraging natural language processing to interpret and respond to specific text and voice commands (questions). Bots operate on a very simple premise: they are set up to recognize key pieces of information a user shares through texts and voice and then provide an answer if one is set up for that specific use case. It primarily uses business-to-consumer (B2C) text-based messaging as the interface through which to carry out any number of tasks.

Chatbots are becoming more useful on a daily basis and are able to serve millions of customers 24/7 — a perfect fit for companies that want to deliver instant customer service while cutting costs.  

How does a Chatbot work?

Chatbots recognize key words in the users input and then access a database to give a predefined response. It identifies keywords and attempts to form a response from a predefined pattern. Chatbots are based on pattern-matching, thus the intelligence of a Chatbot depends on how human-like and intelligent these predefined patterns are and on how well the sentence from the user is understood. For now, we can classify three types of Chatbots:

1 Text bots — conversational products living within chat interfaces. Examples include: Slack, Facebook Messenger, Telegram, and Kik

2. Visual bots — visual products living within chat interfaces. Examples include: WeChat, Google.

3. Audio bots — voice-based bots. Examples include: Apple Siri, Microsoft Cortana, Google Now, Amazon Alexi.

There are many industries where chat bots would go a long way towards reducing customer pain points. We haven’t even scratched the surface yet for most use cases.

The business goals for Chatbot implementation could be following:

1. Improving the online customer experience
2. Improving cross-channel customer experiences
3. Improving the experience of interacting with a call centre agent
4. Adding or improving mobile customer experiences
5. Improving the store/branch customer experience
6. Improving the phone self-service customer experience

Let’s take one industry and show you exactly how amazing, powerful and useful bots can be: the banking industry.

Chatbot on Banking
Banks are always keen to reduce costs whilst improving the customer experience and With Difficult market conditions & competition from digital savvy entrants have been challenging traditional banks. Chatbot is a solution is emerging that will enable these legacy players to innovate at relatively modest costs.

1. Chatbot / Bots appeal to banks because they require less coding and are therefore cheaper than banking apps.
2 They also automate currently manual back-end tasks, saving them money on salaries and allowing some operations to run 24/7.  
3. It helps customers save time and get their financial questions answered quickly. But it’s more than just that.
4. It has role in operational efficiency & analytics, Chat bots & automated data gathering (and improvements).Chat bots mean no peak times or extra staffing projections for the holidays  
5. Biggest business benefits for Chat bots as the new, 24/7 face of customer service & can help automate fraud prevention processes. Bots can push relevant content to end users and test user engagement & IT can lead a company’s personalization strategy and generate incremental revenue
6. There is a strong incentive for businesses to enable such conversations across all digital channels, including existing Mobile apps and Web portals as well as highly popular messaging platforms such as Facebook Messenger, WhatsApp, and others.”

For customers, Chatbots promise a better, faster experience – less time spent waiting in the cashier queue or navigating through call centre menus; problems being resolved more quickly. For banks the promise is greater operational efficiencies on top of a better user experience – if Chatbots can handle basic queries about payments, overdrafts and savings, call centre operators can be freed up to handle the more complex queries adding greater value to the business overall.

Concluding....

Soon industry will witness new bot development framework called Conversations as a Platform & it will make bots that understand the human voice and use machine learning to answer questions and deliver useful information. In my view Chatbots will be new Websites.
 
A short while back, Microsoft’s CEO Satya Nadella famously said “Bots are the new Apps.” He envisions “people-to-people conversations, people-to-digital assistants, people-tobots and even digital assistants-to-bots. That’s the world you’re going to get to see in the years to come.”

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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ChatBot banking sundar pichai marketing

Prasanna Lohar

Prasanna Lohar is Head of Technology (Digital Banking) at DCB Bank Ltd. He has almost 15 years of application design, development and deployment experience in a Senior Developer/Team Leader/Architect / Sr. Manager Position.

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