In recent years, banking has gone digital, and technological advances have opened up many opportunities for banks to interact with customers more personally. Online banking, mobile banking, and even chatbot-enabled banking are becoming increasingly popular in the Middle East, with a projected 41% of adults in the UAE alone expected to have an online bank account by 2027.
However, while the move online has created many opportunities for banks to engage with customers, it has left many feeling isolated and frustrated. With so much communication happening remotely, customers can feel as if their questions and concerns are being overlooked or ignored.
Conversational banking is an innovative solution that bridges the gap between traditional banking services and modern technology by providing customers with a more personalized, interactive experience. Let's take a closer look at conversational banking and how it can benefit customers.
What is Conversational Banking?
Conversational banking is a two-way communication between banks and their customers, enabling them to engage in real-time conversations. This can occur through personal chat messages, voice platforms such as Alexa and Google Home, SMS, WhatsApp, or any other messaging platform. By using conversational banking technology, banks can offer customers personalized banking services more interactively and conveniently, allowing them to quickly get the answers they need.
In addition, conversational banking can be used to provide customers with personalized recommendations - such as investment opportunities or loan offers - based on their financial needs and goals. The technology also allows banks to offer automated customer service 24/7, making it easier for customers to get the help they need without having to wait on hold or travel to their local branch.
Possible Use Cases
Conversational banking can be used in many ways, from simple automated chatbots to frontline support and live chats. For example, banks can use bots to provide customers with immediate answers to frequently asked questions (FAQs). This can improve customer satisfaction by providing quick responses without waiting for a human representative. Banks can also set up hybrid chat sessions, in which customers can speak to a customer service representative an automated chatbot, or a combination of both depending on their requirements.
In addition, banks can use conversational banking technology to provide personalized support. For example, they can offer customers the ability to make video calls with a consultant or manager. This allows customers to ask more detailed questions and have a more in-depth conversation.
It's also worth noting that the security of conversational banking is essential, as customers will be sharing their personal information and conducting financial transactions. Banks must ensure that their customers feel confident and safe when using this technology. To do this, banks can use security protocols like multi-factor authentication and verification APIs to ensure they can verify a customer's identity before any transactional services are provided. This gives customers the confidence they need when using conversational banking technology.
Conclusion
As more people migrate to online services, there are significant consequences for the banking industry. While there are important advantages associated with this shift, some customers still prefer personal contact and in-person care when dealing with banks. That's where conversational banking can be the solution: it offers a significant element of personalized service while still being a more convenient way to conduct banking activities.
Banks can add value to their services using this technology without sacrificing the human touch. As such, conversational banking is an essential tool for banks that want to remain competitive in today's digital age.
