Artificial Intelligence (AI), Machine Learning and Data Science are just a few of the latest trends that have recently emerged in the field of Information Technology (IT). However, the development of conversational software agents, also referred to as chatbots, can be traced back to the mid 1960’s with the introduction of the computer program ELIZA (Wiezenbaum, 1966). As the implementation of chatbots has progressively become easier, it cannot be denied that chatbots are one of the leading trends in IT nowadays. According to Deloitte (2018), “chatbots are a clear manifestation that Artificial Intelligence (AI) is moving the hype”. A recent study by Sweezey (2018) suggests that “69% of consumers prefer chatbots for quick communication with brands”. This perfectly demonstrates the emerging dominance of chatbots from a customer perspective.
Nowadays, voice assistants such as Siri, Alexa or Google home have become increasingly accepted and used by the vast majority of people therefore increasing the willingness to interact with such systems. However, when it comes to financial topics such as financial matters it becomes increasingly important to consider the customer perspective. Just recently, large US based banks, such as the Bank of America or Wells Fargo, introduced chatbots to perform tasks such as offering information regarding saving options or checking an account balance (Legters, 2019). This helps banks to integrate several channels of data into one coherent stream shifting from a multichannel experience (e.g. e-mail, phone, live chat, online banking) to a single stream of data that is easier to manage (Legters, 2019). While this seems like a good solution for both the organization and the customer, aspects other than efficacy should be considered. For instance, customers may be opposed to the idea of providing personal information to an online system. This has shown to be especially true when it comes to new technologies and primarily in older or inexperienced customers.
What is your opinion on chatbots in banking? Does your bank already use chatbots?
Let me know in the comments!
Legters, B. (2019). Chatbots in Banking Got Smart. This is How They’ll Make Your Bank Better. [online] Forbes.com. Available at: https://www.forbes.com/sites/boblegters/2019/07/15/chatbots-in-banking-got-smart-this-is-how-theyll-make-your-bank-better/#5208aa9870a7 [Accessed 1 Oct. 2019].
Sweezey, M. (2018, January 29). 69% of Consumers Prefer Chatbots For Quick Communication with Brands. Retrieved from: https://www.salesforce.com/blog/2018/01/why-consumers-prefer-chatbots.html.
Weizenbaum, J. (1966). ELIZA—a computer program for the study of natural language communication between man and machine. Communications of the ACM, 9(1), 36-45.
Nice blog about Consumer acceptance of chatbots in banking! Using AI bots, banks can provide real-time, intelligent and personalized help for 24 hours to any potential customer and of course save so much money. I understand why some people are afraid to give to “virtual” assistants such a sensitive information, but personally I used it once and it saved so much of my time!
Hi Monika!
Thank you for your comment. I agree, security concerns indeed are one of the biggest concerns people have when it comes to the interaction with voice assistants. This holds especially true for sensitive data such as financial matters. The fact that you used a virtual assistant before and enjoyed using it is quite representative for younger generations in my opinion. I think in the near future the vast majority of people will start to agree that interacting with a digital agent is a lot more convenient and saves time.