Many of the world’s banks struggle daily with the demands of digital transformation and rapidly changing consumer expectations.
In response, they are increasingly turning to emerging technologies, such as artificial intelligence (AI) and machine learning, to tailor a new generation of chatbots that they hope will shift the dial and meet their customers’ unique needs.
A recent study by Worldmetrics.org found that a staggering 90% of banks are now gearing up to deploy chatbots – but what are the implications for customer care? And as an ambitious merchant eyeing up overseas expansion, how can you be sure that your financial services provider will still be there when you really need to speak with them?
The good and the bad
The global financial services industry has big plans for applications of AI, including the likes of ChatGPT and the other emerging large language models (LLMs) that can teach computers to read and derive meaning from language. According to McKinsey, Generative AI is now set to contribute between $200 billion and $340 billion annually in additional value for the banking industry.
Chatbots and other AI technologies open the door to a number of benefits for banks and other financial institutions. This includes 24/7 customer service availability, personalised communications, and more streamlined transactions.
With many banks, it’s likely you can now effortlessly check your balances, transfer funds, or even apply for loans using simple conversational commands. AI-powered chatbots can leverage LLM engines to create a conversational experience by initiating - and personalising -interactions. And by automating routine tasks, chatbots will help banks and other financial institutions to reduce their operational overheads and improve efficiencies.
But there are some negatives to consider alongside the positives. Banks still need to work through a host of issues when deploying chatbots, including privacy concerns, regulatory compliance, algorithmic bias, and the ongoing need for human insight. Such issues have been brought sharply into the spotlight by the European Union’s AI Act, which is the world’s first comprehensive AI law.
It's also worth noting that many LLMs ‘hallucinate’ on occasion, a term popularised by Google AI researchers. Hallucination refers to errors in the generated text that, whilst plausible, are actually in fact incorrect or nonsensical. This makes them very difficult to rely on as a definitive source of truth, especially in the highly regulated financial services arena. It also means that LLMs are still at their best when teamed with a human, who can provide the required oversight.
So whilst AI results in increased convenience, a human touch is still needed. And this is particularly true if you have a complex query that a chatbot simply can’t handle. For example, if you are expanding into a new market, you will have a range of technical questions concerning the regulation that shapes that market, as well as local payment method preferences you will need to incorporate at your checkout.
Too often, businesses are left feeling neglected and underserved by rigid robotics. There will still be numerous occasions where you need to pick up the phone, speak to a human, and ask them to work with you to solve a complicated problem affecting your business.
What steps should you take?
Before you open a new account, it’s important to first test the response times and efficiency of the chatbot technology that a bank or fintech is offering. You should also ensure that you can get connected to a real person when needed – and during your decision-making process, you should evaluate the quality of the conversations you’ve had, and confirm whether they will offer a dedicated account manager upon going live.
Remember, you need – and deserve – a dedicated account manager, irrespective of your location, transaction types, and volume. Don’t be afraid to ask difficult questions.
We know that payment technology can be intimidating. That’s why we have worked hard to reimagine financial service partnerships through our dedicated client success teams and personalised relationship management. Unlike other providers operating in today’s complex market – many of whom will look for a quick fix – we take the time needed to analyse your payments needs in depth and then implement a custom solution that will work for you and your business.
Find out more about our Payment Accounts proposition: Here