Banking has it tough. Today's customers are in charge while banks are facing many threats at the same time. Luckily, there is a simple solution to both of these challenges – chatbots.

Today's customers are in charge

Millennials are one of the largest generations in history and are about to move into their prime spending years, which is why their unique habits have become the main focus of many organizations. But how is this digitally-savvy tribe any different from other generations?

For starters, they want more. And they want it now.
As consumers, they are used to compelling content and intense experiences. They expect instant replies, casual exchanges, and personalized approach. Anytime, anywhere.

They trust existing instant messaging platforms.
Statistics show that smartphone users generally concentrate on 5 apps, most which are IM platforms, such as Facebook Messenger, Viber, and WhatsApp.

They have many other choices.
Spoiled by all the available options, modern consumers want convenience and innovation. They know they need banking, but they want banking that’s easy to use.

They are LOUD.
Consumer feedback gets traction through social media. Bad experiences have echoes online and can permanently damage any brand.

Drive tech upgrades
By moving from browsers to instant messaging, customers are forcing banks to adapt their costly systems to popular new platforms.

While millennials might be the ones driving the change, they are also raising the bar for all the other customers. After all, we all love simplicity, no matter our age.

Today's banks are under pressure

Innovative digital technologies are disrupting classic financial services by lowering transaction costs. Many innovators are challenging the old-school incumbents and moving into their traditional territory. New regulations level the playing field for banks and Fintech startups alike and proactive banks work with these startups in an effort to keep control while global investments into fintech solutions look set to reach US$20 billion in 2018, growing more than 10% YOY. The need to enhance user convenience and welcome competition presents many new security challenges.

How to turn risks into advantages?

It has become evident that banks must quickly tackle many challenges, preferably all at once. Some of them have already responded successfully. By extending their digital efforts to new channels, they have managed to keep customers wooed while overcoming market threats at the same time.

Which new digital channels?

High levels of penetration, use, and engagement of instant messaging platforms mean that financial institutions are starting to recognize the opportunities social media can bring to their business. Chatbots, also known as »the new apps«, are conversational platforms based on predefined logic or artificial intelligence. Working alongside the new conversational model for interacting with online services and by overcoming the app challenge, bots have made their way from social media platforms into every industry – including banking. Enabling users to instantly transfer money, submit digital requests and even ask for a loan, banking bots allow for truly 24/7 banking. On the other hand, the opportunities for leveraging chatbots in banking are endless.