LONDON–A new survey of consumers in one country indicates chatbots have become increasingly popular among consumers of financial services.
GlobalData’s 2019 Banking and Payments Survey found consumers in India value "being able to do what I want, when I want" as the most important attribute for a financial services company. On a global scale, this attribute was ranked second highest, according to the survey.
“Banking chatbots demonstrate the potential for easy banking among established players,” said Katherine Long, retail banking analyst at GlobalData. “For example, Yes Bank’s near-comprehensive chatbot, Yes Robot, which uses machine learning and credit scoring technology from Microsoft, allows customers to perform one of 85 banking functions.”
These functions are made up of 10 segments that include booking savings deposits, managing credit cards, and checking loan eligibility and applications, as well as 10 different general banking services like paying bills and checking an account balance, Global Data said.
‘Vital’ for Success
“Similarly, an omnichannel approach is vital for successfully delivering easy banking, continued Long. “Yes Robot customers are able to use the chatbot online, on mobile browsers and on Facebook. Support will soon extend to WhatsApp, as well as virtual assistants Alexa, Google Home, and Siri.”
According to GlobalData, the benefits of easy banking reforms enable banks to serve customers quickly and efficiently, freeing up capital for banks to grow. Total assets, advances, deposits, and net interest income have achieved five-year compound annual growth rates (CAGR) of between 25% and 34%, with growth from retail banking running at around 30–40%.
“This is unsurprising given that the approach is an effective way of retaining and acquiring new customers,” Long said. “Yes Bank’s approach to a conversational chatbot is a great example of how new players and large incumbent banks can integrate simplification and easy banking into their already comprehensive offer. Instead of letting digital challengers win over customers, banks should act first with easy banking in mind.”