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How AI Chatbots Is Transforming The Fintech Industry? B-AIM PICK SELECTS

How do you feel if you are greeted by a decent sales executive at a departmental store when you enter?

Everyone loves to be attended and feel valued, that is the customer service style where brands personally attend each prospect and understand what they want and help them accordingly?

A similar concept also goes in the digital world. Most importantly, you don’t need a dedicated human resource to attend people online now.

You can leverage the power of artificial intelligence and build a chatbot that understands what customers want and provide personalized responses.

The chatbot will make sure that customers don’t feel ignored and have unparalleled User experience when the interaction with the brand digitally.

In the earlier scenario of that departmental store, some people attended people. But mind you, humans are bound to make errors, small or big.

That’s when chatbots can lead the way because if they are programmed expertly, there is no chance of any errors, period.

These chatbots are utilized everywhere, starting from the website, social media, mobile application, and so on.

When there are money and finances involved, chatbots can become a lifesaver for brands. Fintech solution providers and banking apps can leverage AI through chatbots.

Let’s understand how it has been currently practiced.

Improving UX of Apps

User experience plays a vital role in this digital-driven generation.

Nobody prefers to wait while accessing a mobile application or a website.

Customers want quick response and faster execution from the businesses online.

Fintech applications do have the power to transfer money and do other financial related tasks efficiently.

But not every user possesses that understanding to get used to the UI of the app and understand the flow of it for routine usage.

Many users still struggle to do underlying transactions and banking operations from the mobile application.

Therefore, chatbots can go along way. Chatbots will ensure smoother onboarding of users whenever they register signup for the services of fintech technology.

Through messaging applications, these chatbots will communicate with users to notify or automate financial transactions.

So, the overall user experience of the fintech apps makes people trust the businesses quickly and revisit them to use solutions provided by the companies.

Provide Accurate Suggestions

Chatbots are robots that can talk. They are made from computer programs and can dynamically respond to humans.

They comprehend the intent behind users’ messages and respond accordingly.

For the fintech companies, these chatbots will provide accurate suggestions to users after understanding all the requirements through chatting.

Whether users want to know about relevant medical policies or fixed deposits, chatbots can interactively give suggestions.

With all due respect, millennials and new-age employees lack the skill of managing their funds. In a way, these chatbots will work as a personal financial advisor and financial planner that provide great suggestions backed by numbers and records of the user.

The chatbot would already know the persona of the users, their spending habits, incomes, etc. So, they can suggest the right financial plan.

These types of chatbots will make users’ life so much easier because they no longer have to go to any financial advisor to understand the new fundamentals of the fintech industry.

So these chatbots will people interact with the business and establish a trust that helps fintech companies thrive in the competitive market.

Automate Fraud Detection

Security is paramount in this digital age when everything is turning online. People have now started executing their confidential tasks online that lead to potential security breaches that can jeopardize the financial standings of the victims.

So, security is an essential aspect of the fintech era to win the trust and retain consumers and make them reuse solutions of the fintech company. Fintech can help you to make apps safe and secure.

Talking of fraud detection framework, it has to be robust to judge encrypted potential security threats when other ongoing transactions are happening from an account.

At the time, chatbots are lifesavers for the fintech companies and consumers because these chatbots will keep looking and scanning the accounts to judge if any unusual activities are going on quickly.

Chatbots instantly notifies the user whenever there are any financial transactions’ requests made.

If there is a sudden spark in fund transfer from inactive accounts, the chatbot will immediately observe and notify the customer. Chatbots also have the power to stop the transaction for a limited time if the signs are prominent.

And after acquiring the confirmation and consent from the customer, the account will be redeemed.

Leverage Pattern-based Suggestion

Artificial intelligence has the power to observe user behavior thanks to neural language processing and neural network technology.

These technologies will continuously analyze user behavior and to judge their personality, spending habits, money flow, etc.

This analysis would help fintech companies provide custom solutions to specific people through chatbots. In fact, NLP-Based Chatbots have started moving in this direction.

Whenever a customer asks something to the chatbot, the chatbot will dive deep into the database of the fintech company and match all the necessary queries to provide a proper response to the received message.

Or if there are any discounts on a particular solution of the fintech company, the relevant users would be outreached through a chatbot and offered refunds.

So, through chatbots, made from AI and ML, save a lot of resources for fintech companies to brainstorm, understand, analyze and deploy any type of tasks efficiently.

Advertise New Schemes

Fintech company would agree that pursuing relevant prospects digitally to promote new schemes about money-saving opportunities is fierce.

Furthermore, financial companies and fintech organizations have a plethora of schemes and opportunities for different consumer bases.

So, fintech companies need to find people that would be interested in the solutions. Then the companies have to craft a highly focused message to targeted prospects to convert them as lifelong consumers.

Moreover, online marketing channels like a search engine and social media do not ensure personalized communication mediums.

A chatbot can establish an active one-to-one communication channel through chatting, which is the trending form of communication among new-age users.

Chatbots can get in touch with customers directly and advertise fintech companies’ new solutions.

Chatbots would know about people who would be highly interested in buying fintech companies’ products, so they can quickly broadcast a message and let people know about the new solutions.

Hence, for online conversions, fintech companies don’t need to invest in human resources who manually message targeted people.

Ensure Productivity at Vendor’s Side

Among all the scenarios discussed in this article so far, what would you think about the amount of effort and research required by the financial organization and fintech companies to do all these tasks on their own?

Communicating with the consumers and providing customized messages alone might require different departments altogether with dedicated staff considering there are several thousand customers to be engaged.

If there are no chatbots, financial companies and fintech organizations have to invest in human resources while also balancing quality assurance to provide a lasting user experience.

However, thanks to the presence of chatbots in the fintech industry, they can ensure productive and enhanced business activities and automate creative, critical and monotonous tasks through chatbots.


Feel free to let me know what your thoughts about chatbots transforming the fintech industry are.

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