The Future of AI in Banking Customer Service: Trends and Innovations

AI has become a valuable ally in the world of banking. It is widely used for data analytics due to its supreme data processing capabilities. Yet, it’s not the only function of artificial intelligence in financial institutions. Customer service teams also benefit from AI, improving the speed and accuracy of their responses and enhancing customer experience. This is why, in this article, we shall look at what the future holds for artificial intelligence in banks and their customer service departments – we invite you to read on!

AI in banking customer service

AI in Banking Customer Service: Trends and Innovations

What trends can we observe right now regarding the use of AI in digital banking and customer service of financial institutions? Take a look at the list below.

1. The Rise of Chatbots

Virtual assistants in banking are no longer a far future but rather a present, innovative approach. Due to the development of generative AI, chatbots are becoming increasingly popular in financial institutions.

The fact that major US banks, like Bank of America, JP Morgan Chase, or Ally Bank, employ such tools speaks volumes – it’s a go-to solution for financial institutions with a plethora of benefits.

Yet, why is it going to be a major trend? Because before the rise of generative AI, chatbots were quite limited. Now, it’s different – with the new opportunities that come with generative artificial intelligence, AI-powered customer service in banking will become even more common.

Generative AI can be fed with information provided by a bank’s customer service team. As a result, it is capable of providing more accurate and precise answers to the questions asked by the clients – and do it in a much shorter time. This leads to better customer satisfaction and improved productivity, as skilled employees do not have to spend time searching through numerous materials to answer simple queries – when the topic is simple, the bot handles it, and the agent needs to engage only when the case is too complex for the chatbot. Therefore, we expect the trend to turn to virtual assistants to be present not only in 2024 but in the following years as well.

2. Self-Service Coming Live

With the rise of AI chatbots and eKYC solutions, digital banking strongly leans towards self-service – simplified yet effective and compliant verification methods and whole services available conveniently on mobile devices, with minimum need to visit physical branches. This trend is no mistake – it has its roots in the current market situation.

According to the Signicat Battle to Onboard report, just in 2022, about 68% of European consumers abandoned onboarding[1]. This is due to the fact that it’s a complex, time-consuming process. Yet, the fact that people are so willingly giving up on new banks poses a major challenge – the cost of customer acquisition rising.

To overcome these obstacles, banks need to utilize self-service while remembering to cater to the needs of the customer. This means preparing a self-service process that is as simple as possible while still having customer service agents ready to jump in and help when the customer feels lost. Only this can help reduce the onboarding abandonment rates – customers strive for freedom and simplicity but also easy access to support. Finding a balance between self-service and traditional onboarding is the key.

3. Personalizing Experiences

In the 21st century, personalization has become of the utmost importance for most customer-based organizations, and banks are no exception. Since AI-powered customer service in banking enables a deeper level of customization, switching to it is yet another trend that we may observe.

With the use of AI in banking customer service, it is possible to provide clients with support most tailored to their needs. From automated product recommendations based on the data collection on a particular client to even the smallest elements that create a better experience and are often overlooked, like adjusting the tone of voice of the messages on the chat – artificial intelligence does the trick in and out.

To add to that, this personalization is often seamless. Changing the tone of voice in our digital customer service solution takes only a few clicks. Data analysis of the information on a given client is conducted in a matter of seconds due to the processing capabilities of artificial intelligence. The whole process is convenient and better than the traditional approach. Thus, the tendency to opt for such solutions shall grow in the future.

AI in Banking Customer Service: Conclusion

Artificial intelligence brings many advantages to the customer service in banking industry. Despite its limitations, AI is capable of improving customer experience, making the processes more convenient, and increasing the efficiency of the employees. It is a viable option right now, but just think about it – in a few years, when many of the limitations will be gone, AI will probably revolutionize customer support completely! 

Did you find this article interesting? Then we would like to recommend you our other post: Revolutionizing Customer Engagement: The Optichannel Approach in Banking