Generative AI, the technology underlying ChatGPT, has the potential to drastically alter many aspects of our lives and careers, including software engineering, e-commerce, and the creative industries.
FinTech is not an exception when using generative AI, as automation applications are only becoming more complex.
According to a recent McKinsey analysis, generative AI can generate up to $340 billion in value annually in the banking sector alone.
FinTech assistance is one of the primary domains where generative AI shines because this innovative technology has transformed the possibilities of customer experience (CX) automation.
Why would you utilize Generative AI to assist with FinTech?
Let’s be honest, the development of generative AI has fundamentally altered the landscape of support automation. According to a Zendesk study, 67% of respondents said they would rather use self-service than talk to a real agent.
Conversely, there are a lot of posts on LinkedIn discussing the dangers that businesses face if they don’t use AI in some capacity.
You don’t want to get dragged into markets where competition is as fierce as in the FinTech industry. Beyond merely following the trend, however, research shows that automation use cases are becoming more complex and persuasive.
The adoption of AI automation in finserv, or financial services, increased by 63% in the previous year. And the list will only get longer thanks to generative AI.
Even with all the claims, you might still be curious about how generative AI directly relates to FinTech. Let’s dissect it now.
1. Supplying your clients with a more organic dialogue experience
The main benefit of generative AI is that it offers users a significantly more sophisticated conversational experience. Driven by LLMs, this technology has made chatbots capable of passing the Turing test, a measure of a machine’s ability to mimic human speech and other tasks.
For finance, this implies that you can automate customer assistance without sacrificing the caliber of your customer experience (CX) thanks to generative AI development. Your bot is capable of accurately mimicking the tone of speech associated with your brand and operating sentiment analysis to adjust to the mood of your customers.
2. Generative AI applications for more individualized assistance
More than just talking the talk, generative AI goes above and beyond its predecessors in polite speech imitation.
It does the job by providing more individualized service that provides your clients with the solutions they need, all based on their unique questions and data.
Generative AI allows you to establish content guidelines that enable more accurate and personalized responses and connect to numerous knowledge bases or help centers to allow more localized support.
Not to mention that you have a variety of bot identities to select from, guaranteeing that discussions are consistently brand-appropriate.
3. Gaining a deeper comprehension of the questions your clients ask
The aim of CX automation shouldn’t just be deflection at all costs, especially in sectors like FinTech that deal with managing people’s hard-earned money. Instead, your chatbot needs to act more as a support system to help your human agents perform their duties more effectively.
For example, using generative AI in FinTech, your bot can answer questions from consumers, consider their context and past interactions with your business, extract pertinent data from the chat, and add it right away to the support ticket so that your human agents are ready to go when a request is escalated.
4. Helping your human agents resolve challenging problems
Once a question is sent to an agent, generative AI is still valuable. It can significantly simplify the life of your agents, even for labor-intensive jobs that call for human intervention.
It is because it can create sample responses based on sentiment analysis and conversational context but extracting data and filling support cases before they get escalated.
In this manner, your human agents can provide precise and sympathetic assistance considerably faster. You will consequently experience increased consumer and employee satisfaction.
Use Cases for Generative AI in FinTech
We’ve now discussed a few of the features that make this new technology exciting to talk about. Gen AI-powered chatbots and FinTech go hand in hand, from card activation to instantaneous information on transfer status. Let’s discuss using generative AI in FinTech to enhance customer experience without further ado.
1. Generative AI for card activation
Most of us have tried to activate a new card by navigating through one of those unsettling automated phone menus. In addition to being negligibly annoying, it necessitates typing private data into the blank.
Instead, users may safely and quickly activate their cards directly within their mobile banking apps, all while maintaining the experience of speaking with a person. It is because you may use APIs to automate tasks like verifying that the card number you submitted is accurate and then requesting that your card be activated in your backend system.
2. Provide round-the-clock assistance via all platforms
Being in the financial services industry means that you have to be able to offer the most thorough customer care. Of course, a key component of it is still being available to your clients.
Your support crew probably has to deal with pressing, meaningful demands, including canceling a transaction or making on-time bill payments.
When feasible, use generative AI automation to allow customers to self-serve whenever convenient. Examples of these automations include address updates and password resets.
Consequently, customers will be able to resolve issues more quickly and be more satisfied that they trusted you with their hard-earned money.
Your agents will have more time to concentrate on answering more complicated questions when they come up if you provide them with more self-service choices like chat, email, or phone, available around the clock.
3. Give clients access to real-time bank transfer status information
Your generative AI chatbot can automatically integrate with your back office systems and give consumers transfer status information right in the chat window.
It can be helpful in several situations, such as when a client overlooks to make a payment or enters incorrect banking information while transferring money between accounts.
Your bot can ask your customer to check the transfer status in their account and determine if they are qualified to cancel after it has instantaneously retrieved their transfer status. If they are, it can escalate the cancellation to a human representative for completion.
4. Multi-language support in chatbot
We frequently do cross-border banking because we live in a globalized environment. Thus, it is likely that fintech businesses cater to clients who speak many languages. It’s even less enjoyable than it seems to try to manage your transactions in a foreign language.
As a result, you can open up new options for growing both your business and your support offering if you can meet your consumers in the language of their choice.
Best methods for using Generative AI in FinTech
As with any innovation, there are still some hitches to work out, so it’s always a good idea to begin cautiously.
There are drawbacks to ChatGPT and other generative AI techniques. These bots, also known as hallucinations, can give false information and frequently cite fictitious sources to support their claims.
Furthermore, depending on the size of the data set used to train it, a bot may have blind spots. For example, ChatGPT is far from being an all-knowing superpower because, contrary to common assumptions, it does not even consult the entire internet while generating responses to your queries.
Finally, AI may end up harmfully imitating human biases due to factors like programming biases.
For this reason, it’s crucial to exercise caution while incorporating generative AI into your FinTech assistance. As an alternative, you should bear the following recommended procedures in mind.
Assure maximum security and safety
Safety and security rank highly in the financial services sector. Hence, discussing how generative AI in fintech interacts with these concerns becomes necessary.
Since not all generative AI providers are made equal, it’s critical to evaluate which automation platform you choose based on safety certifications like GDPR and SOC-2 type 2 compliance, the gold standard for cybersecurity protocols.
Set up barriers
It’s normal to have some fear of the unknown because generative AI is still relatively new, and its potential is now acknowledged in the finance industry.
First of all, depending on the questions you ask, ChatGPT’s information might not be accurate. While there are steps you can take to put safeguards in place, this is undoubtedly a worry when deciding whether or not to utilize generative AI in finance.
Additionally, you should specify what subjects your generative AI chatbot is allowed to speak with clients. One way to limit the topics your bot can discuss in a support context is to set limits with a good-generation AI chatbot provider. In this manner, you can be sure that when a support request comes in, your bot won’t start rambling on and on about philosophy or religion.
Conclusion
Given that generative AI is just now beginning to become widely available, we still don’t fully grasp all the applications it can have in FinTech software development. With any new technology development, caution is recommended. But companies who don’t embrace generative AI risk falling behind in the fiercely competitive fin-serv sector.
In addition, automation is a tried-and-true method of cost-cutting and business expansion at the same time. Because of this, progressive firms have already included it in their customer-facing and back-end operations.
The post The Role of Generative AI in Revolutionizing FinTech Customer Experience appeared first on Datafloq.
