Riding the Virtual Wave: Conversational AI in Fintech
Maria Motsakou
Marketing Specialist
January 3, 2024
in
🤖 AI automation
Did you know that by 2025, the global conversational AI market is poised to scale a staggering $13.9 billion? That alone paints an intriguing image of how rapidly it is reshaping industries, especially fintech. But what is it and how exactly is it transforming the fintech sector? Let’s dive in.If you haven’t heard yet about Conversational AI, delve into our article here about GenAI & Conversational AI.
Transforming Dialogue: No Code AI and Proprietary LLMs
Emerging from the rich intersection of machine learning and linguistics, conversational AI, boasting with technologies like chatbots and voice assistants, excels at simulating human-like conversation, bringing us all closer to achieving the dream of human-machine symbiosis. Core to this reality are no code AI and proprietary Language Learning Models (LLMs) that enhance conversational AI’s language understanding. The former enables businesses to implement AI without the need for complex coding or technical skills.
Especially in the financial sector this blend of technology is nudging fintech firms to offer more personalized and efficient services. Now, let’s explore some of the best use cases of conversational AI in fintech.
The FinTech Front: Use Cases of Conversational AI
24/7 Customer Support
24/7 customer support is a use case of conversational AI that leverages AI and NLP to handle inquiries any time. This means that It allows businesses to deliver instant, personalized, efficient support to their customers, enhancing customer satisfaction and loyalty.
In the context of fintech, where financial transactions and services are provided online, 24/7 customer support becomes crucial to ensure smooth and uninterrupted user experiences. The integration of Conversation AI technology further enhances this support system. Here are some key use cases of 24/7 customer support in fintech as a result of Conversation AI:
Handling account-related queries
Users often have questions about their account balances, transaction history, or activities. Until now, all these queries were handled by the customer support team. Especially with Conversational AI, fintech companies can address these queries effectively, ensuring that customers can access account information or resolve issues related to account management at any time.Assisting with transaction issues
Financial transactions can sometimes encounter errors or face delays. Having 24/7 customer support powered by Conversation AI allows users to seek guidance and resolve transaction-related problems promptly. Whether it’s a failed payment, or a withdrawal issue, or any other hurdle, customers receive immediate assistance at any hour.Providing real-time fraud detection and prevention
Conversational AI technologies can be programmed to identify and flag suspicious activities related to fraud attempts, such as unauthorized financial transactions or unusual account behavior. The system can instantly notify the customer and provide appropriate guidance to secure their accounts, preventing potential financial losses.Offering personalized financial advice
Conversational AI can be trained to analyze user financial information and provide tailored advice based on their specific needs and goals. Customers can seek advice on investment choices, savings plans, loan options, or other financial matters. By combining Conversational AI with Generative AI customers can receive human-like, comprehensive and customized support at any time of the day.Facilitating self-service options
Conversational AI can enable automated self-service options for users. It can handle routine queries, such as account password resets, updating personal information, or configuring account settings, without the need for human intervention. This frees up human agents to focus on complex issues while ensuring users can resolve common problems quickly, even during non-working hours.Streamlining customer onboarding
Fintech platforms often require customers to go through an onboarding process that involves verifying identities, submitting required documents, or completing specific forms. Conversational AI can guide users through these processes, answering their questions, ensuring accurate information submission, and reducing friction in the onboarding journey.Assisting with regulatory compliance
Fintech companies need to comply with stringent financial regulations. Conversational AI can aid customers in understanding compliance requirements, providing guidance on necessary documentation, explaining regulations, and resolving any compliance-related concerns promptly.
Overall, AI-based 24/7 customer support enhances operational efficiency, reduces costs, and allows businesses to offer timely and satisfactory support. It streamlines the support, improves customer experiences, and frees up human agents to focus on more complex or specialized tasks. Therefore, optimizing resources and driving customer satisfaction and loyalty.
Security
In the fintech world, security is paramount. Conversational AI, with its ability to detect fraudulent activity by analyzing communication patterns, plays a pivotal role in strengthening security. Some advanced chatbots can even alert users about potential data breaches, reflecting the possibilities of AI in bolstering cybersecurity.
Implementing conversational AI in the fintech industry can bring several security use cases. Here are a few examples:
Fraud Detection
Conversational AI can be trained to analyze customer conversations and transactions in real time for suspicious activities. By continuously monitoring and analyzing user interactions, it can detect patterns and flag any unusual or abnormal behavior, alerting the appropriate stakeholders to take necessary actions.Authentication and Identity Verification
Conversational AI can enhance security by providing a layer of authentication during customer interactions. AI chatbots can leverage biometric data, voice recognition, or facial recognition technologies to verify the identity of customers, ensuring secure access to financial services and preventing unauthorized access.Secure Payments
Conversational AI can facilitate secure transactions by eliminating the need for customers to provide sensitive information like credit card numbers or bank account details. AI-powered chatbots can integrate with secure payment processing systems, enabling customers to make payments via voice commands or chat interactions while maintaining data confidentiality and preventing potential breaches.Compliance Monitoring
Conversational AI can play a crucial role in ensuring regulatory compliance within the fintech industry. By analyzing conversations, AI-powered systems can identify any non-compliant interactions, preventing potential violations and mitigating compliance risks. It can also provide real-time guidance to customer service representatives, ensuring adherence to legal and ethical standards.Data Privacy
Conversational AI systems should prioritize data privacy and comply with relevant regulations. By implementing robust encryption techniques, secure data storage, and access controls, financial institutions can protect customer data shared during conversations. Additionally, AI platforms should regularly undergo security audits and vulnerability assessments to identify and address potential security risks.Threat Intelligence
Conversational AI systems can be trained to analyze external conversations and news content for relevant threat intelligence.
Overall, the implementation of conversational AI in fintech brings significant security benefits. Whether it’s enabling fraud detection, enhancing authentication, secure payments, ensuring compliance, protecting data privacy, providing threat intelligence, or improving employee awareness it is the next generation of customer experience.
The Future Is Promising
The above use-cases illustrate just the tip of the conversational AI iceberg in fintech. As we wade further into the AI-driven era, fintech companies that leverage conversational AI will likely take the lead, offering more personalized and secure services.
The field of conversational AI will grow, and with improvements in no code AI and proprietary LLMs, the financial sector holds enormous growth potential. From improved customer engagement to enhanced operational efficiency and data-driven insights, the prospects of it in fintech are boundless.
Summing It Up
From maintaining 24/7 customer support and ensuring security, the use-cases of AI in fintech are varied and rich. Adopting and integrating such advanced technologies is the key to thrive in this fast-paced industry. Undoubtedly, conversational AI is not just a fleeting trend but a game-changer that holds the promise of transforming the fintech landscape for the better. So, are you ready to ride the virtual wave? When it comes to the use of conversational AI for Fintech organizations, Moveo is paving the way combining the best of both worlds: Conversational AI & Generative AI. It’s worth mentioning the Moveo x Viva.com partnership for the launch of “Tap to Pay” feature as one of the few GenAI fintech cases now in production!
You can read more on the launch here!
Moveo’s 1-click AI revolutionizes customer experience by utilizing the power of proprietary Large Language Models. It also gives businesses the chance to automate their processes and integrate responsible GenAI. Moveo’s platform is far from being just another GPT wrapper with keyword-triggered, targeted responses! Rather, it is the ideal fusion of business processes and cutting-edge artificial intelligence. It is an all-in-one platform that allows you to quickly create a Virtual Agent with industry training. And don’t forget you can monitor its effectiveness for a wide range of business processes. With just a single question, you can automate nearly any procedure, from onboarding to KYC to safe and secure transactions. Your data stays protected since our platform seamlessly interacts with any business API, eliminating the need for third-party connections.