Banks are investing heavily in artificial intelligence (AI) to improve their customer service and efficiency. However, many of their chatbots are failing to deliver the expected results, leaving customers frustrated and dissatisfied.
Chatbots are supposed to make banking easier
Chatbots are computer programs that can interact with customers through text or voice, using natural language processing and machine learning. They are designed to provide quick and convenient answers to common queries, such as account balance, transaction history, or product information. Chatbots can also perform simple tasks, such as transferring money, paying bills, or opening accounts.
Banks are using chatbots to reduce their operational costs, increase their customer satisfaction, and gain a competitive edge. According to a report by Juniper Research, chatbots could save banks more than $7.3 billion per year by 2023, by reducing the time spent on customer service calls and emails. Chatbots could also generate new revenue streams, by cross-selling and upselling products and services, or providing personalized financial advice.
Chatbots are not living up to their promises
However, not all chatbots are created equal. Many of them are poorly designed, poorly trained, or poorly integrated with the bank’s systems and processes. As a result, they often fail to understand the customer’s needs, provide inaccurate or irrelevant information, or execute the wrong actions.
For example, a customer of a major bank wanted to check the status of his credit card application. He contacted the bank’s chatbot, which asked him to provide his name, date of birth, and ID number. After he entered the details, the chatbot replied: “Your question is too complicated, can you rephrase it?” The customer tried several times, but the chatbot could not help him. He ended up calling the bank’s call center, where he had to repeat the same information, and wait for several minutes before getting an answer.
This is not an isolated incident. Many customers have shared their negative experiences with chatbots on social media, blogs, and review sites. Some of the common complaints are:
- Chatbots are slow, unresponsive, or unavailable
- Chatbots are repetitive, robotic, or impersonal
- Chatbots are unable to handle complex or specific queries
- Chatbots are unable to handle multiple or follow-up queries
- Chatbots are unable to handle emotions, sarcasm, or humor
- Chatbots are unable to escalate issues to human agents
- Chatbots are unable to provide feedback or confirmation
Chatbots need to improve their performance and perception
These problems not only frustrate the customers, but also damage the bank’s reputation and brand image. Customers may lose trust and confidence in the bank, and switch to other providers or channels. According to a survey by PwC, 59% of customers said they would stop doing business with a company after a bad experience with a chatbot.
Therefore, banks need to improve their chatbots, both in terms of performance and perception. They need to ensure that their chatbots are:
- Well-designed, with clear goals, scope, and functionality
- Well-trained, with sufficient data, feedback, and testing
- Well-integrated, with seamless connection to the bank’s systems and processes
- Well-monitored, with regular evaluation, maintenance, and improvement
- Well-presented, with friendly, human-like, and consistent personality and tone
Banks also need to educate their customers about the benefits and limitations of chatbots, and provide them with options and alternatives. They need to inform their customers about the purpose, scope, and functionality of chatbots, and how to use them effectively. They need to provide their customers with clear and easy ways to switch to other channels or human agents, if they are not satisfied with the chatbot. They need to solicit their customers’ feedback and suggestions, and use them to improve their chatbots.
Chatbots have the potential to transform the banking industry, by providing faster, cheaper, and better customer service and experience. However, they also have the risk of alienating the customers, by providing slower, costlier, and worse customer service and experience. Banks need to balance the opportunities and challenges of chatbots, and ensure that they are delivering value to both the customers and the bank.
