The Growing Use of Chatbots and Virtual Assistants in Personal Finance

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A study by Juniper Research revealed that banks may save as much as $7.3 billion globally in operational costs due to the implementation of chatbots. This technology, alongside virtual assistants, is reshaping the world of customer service in finance, adding accessibility for personal finance navigation while saving money across the board.

As the world looks for financial situations in the pandemic economy, the use of chatbots and virtual assistants will play a major role in personal finance. This tech offers everything from convenient customer service to the mobile, on-the-go needs of the modern workforce.

As chatbots and virtual assistants become more common, it is beneficial to examine how they enhance personal finance as well as the benefits they bring both to businesses and end-users. We explore these details here to determine the implications of the growing chatbot trends in finance.

Chatbots and Virtual Assistants in Personal Finance

Major financial institutions are taking this opportunity to integrate virtual assistant options to meet customers where they are. This is an increasingly tech-savvy marketplace, with workers now frequently working from home who need to be able to manage their finances on the fly. Even before the pandemic, big banks were stepping up to promote these consumer-friendly practices and offer greater financial mobility for their customers.

Bank of America is just one example of an institution implementing chatbot tech. By introducing its Erica virtual assistant, Bank of America is now providing customers convenience and mobile information regarding:

• Account notifications
• Balance information
• Credit report updates
• Bill pay help
• Transaction assistance

All these features and more can help customers maintain their finances, keep a good credit score, and manage their assets from the comfort of their smartphone. This is an invaluable trend, one unlikely to dissipate anytime, even long after the pandemic has run its course.

Developments in other avenues of AI and robo-advising have increased natural language processing (NLP) and auditing efficiency. With the power of NLP to assist customers with all kinds of issues, banks can save millions on customer service while offering greater flexibility. At the same time, the ability of AI to scan and predictively interpret data means reduced human error on the accounting and auditing side of financial management.

All these features and more are playing vital roles in the future of personal finance technology, offering a host of benefits for companies and consumers alike who integrate virtual assistants.

The Benefits

Bringing in AI assistants to the personal finance sector is a recipe for success. The wide variety of benefits offered by this technology means enhanced accessibility and user experience for all users. While no system can be comprehensively perfect, chatbots automate time-wasting aspects of work so that finance professionals can truly use their time to assist customers.

The impact of tech integration in finance is as limitless as its potential. These are just a few of the positive innovations that chatbots and virtual assistants bring to personal finance:

• Greater usability through speech recognition technology. With the popularity of smart home systems, speech searching is at an all-time high. AI chatbots and virtual assistants using innovations in NLP can manage speech recognition technology to provide greater financial accessibility to anyone, regardless of situation or disability.
• Enhanced user experience. As a mobile trend, digitization of the customer service experience using AI can provide a myriad of benefits through the use of algorithmic data processing. Through the use of data, bots can draw out personalized help, product recommendations, and much more that can assist the customer on a personalized level that would be difficult for a human to match.
• Freer workflow. With troubleshooting and simple assistance topics out of the way, customer service professionals can better dedicate their valuable time and efforts to managing new methods of customer satisfaction and provide unparalleled service. In turn, companies can save money and consumers don’t have to wait on hold.

These benefits change the way that we manage our finances, adding new levels of convenience for industry workers and average users alike. For any financial operator, implementing virtual assistant technology can be an investment that more than pays for itself. All you have to do is find the right bot engineers for the job.

The Future of AI Assistance in Fintech

AI assistants will be an increasingly common aspect of the way we use financial technology. When building a chatbot, businesses must integrate the human aspects of customer assistance into every part of bot design. In doing so, you can better retain the human element of customer service while providing invaluable benefits to company time and workflow.

In turn, those managing their personal finances won’t have to wait on hold or be hamstrung by poor mobile design. They won’t’ have to wait for the bank to open. They won’t even have to leave their homes. As millions struggle with their financial situations in the wake of the coronavirus pandemic, such convenience and flexibility will carry the financial sector into the future.