CIRCA 2021 (Pre-ChatGPT): Hi, what’s the total interest due on my home loan? I am sorry. Please contact your nearest bank branch for more details.
Circa 2024: Hi, what’s the total interest due on my home loan? The total interest amount for your loan account xxxxxx78 is P90,281. Is there any other information I can help you with?
Just a few years ago, who would have imagined that chatbots would behave like personal customer service representatives and would have an answer to everything about your account. If there’s one technology in the last 10 years that had the most profound impact on the banking sector, it has to be generative AI. You only have to be a bank customer (which all of us are) to understand the difference it has brought to the customer experience. No more endless waits on phone lines, no need to download multiple apps, and no more frustrating responses from structured bots.
Voice-enabled chatbots are already being used to perform tasks such as checking account balances, transferring
funds and even providing financial advice, all through simple voice interactions. CONTRIBUTED PHOTO
From simple rule-based systems that struggled with basic queries, we’ve progressed to sophisticated AI-powered assistants capable of handling complex financial inquiries with ease. This transformation is not just about convenience; it’s reshaping the entire landscape of customer service in banking, setting new standards for accessibility, efficiency and personalization.
In the APAC region, where digital adoption rates are among the highest globally, the rapid evolution of chatbots is noteworthy. Imagine this: You’re stuck in line at a bustling market in Cebu, phone clutched in your hand. You need to check your account balance, but the thought of navigating a clunky app fills you with dread. Suddenly, a solution pops into your mind — you fire up a message to your bank’s chatbot on your favorite messaging app. Within seconds, you have your answer, all without leaving your spot in line.
Chatbots within widely used messaging platforms like WhatsApp, WeChat, and Facebook Messenger offer unparalleled convenience by allowing users to interact with their bank without needing to open a separate app or website.
A case in point is WeChat in China. With over a billion users, WeChat exemplifies the potential of messaging app chatbots. Chinese banks have harnessed this platform to offer a range of services, from balance inquiries and fund transfers to customer support and investment advice. The convenience of accessing banking services without leaving the messaging app has driven significant user engagement and satisfaction.
India, with its massive WhatsApp user base, has seen a similar trend. Banks like HDFC and ICICI have launched chatbots on WhatsApp, enabling customers to check their account balance, request mini statements, and even apply for loans through simple text commands. This integration has made banking services more accessible, especially in rural areas where smartphone penetration is high but access to banking infrastructure remains limited.
And now as chatbots get all the smarter with voice technology, their application in banking services can be transformational. By enabling customers to interact with their banks through spoken commands, voice chatbots are making banking services more accessible to a broader audience, including those who may struggle with text-based interfaces. Mobile-first markets such as APAC can especially benefit with the hands-free and efficient way to manage finances. Think of fund transfers, bill payments, account updates all on the go.
In countries like Australia and Japan, voice-enabled chatbots are already being used to perform tasks such as checking account balances, transferring funds, and even providing financial advice, all through simple voice interactions. As voice recognition technology continues to improve, we can expect voice chatbots to play an increasingly significant role in digital banking, making financial services more inclusive and user-friendly.
Yet another digital innovation that’s driving a wave of transformation in APAC markets is open banking — a type of banking that promotes innovation and competition by allowing third-party developers to access bank data, with customer consent, through application programming interfaces (APIs). This enables the creation of new financial services and products that can be seamlessly integrated with existing banking systems.
For example, in Australia, the Consumer Data Right (CDR) framework empowers consumers to share their banking data with accredited third parties, fostering the development of innovative financial products and services. Similarly, in Singapore, the Monetary Authority of Singapore (MAS) encourages open banking initiatives to enhance financial inclusion and innovation. India’s account aggregator framework is also a step in the same direction.
By breaking down traditional silos between institutions, it enables customers to access a diverse array of services through a unified interface. This integration goes beyond basic banking, encompassing everything from tailored financial guidance to sophisticated investment tools and comprehensive expense analysis. This shift not only enhances convenience but also empowers customers with unprecedented control over their financial lives, marking a significant evolution in the banking landscape.
It’s no wonder why the APAC region is emerging as a hotbed for innovation in digital banking. A young, tech-savvy population embraces messaging apps and readily adopts new technologies. This creates a perfect launchpad for both chatbot development and open banking. And to top it up, many APAC governments actively promote financial inclusion and digital transformation, with initiatives that support chatbot use in banking. The diverse regulatory landscape across the region allows for experimentation, with some countries taking a progressive approach to AI, further accelerating chatbot advancements.
It’s clear that the future of banking is brighter than ever, thanks to all the innovative technological solutions that are coming to the fore. AI Chatbots with seamless integration across web, apps and messaging platforms will create a unified and secure banking experience. Think of a future where your chatbot can connect you with the best loan options from different banks based on your unique financial profile. This convergence of chatbots, open banking, and other digital innovations promises a future of personalized, convenient, and secure banking for everyone in the APAC region.
Beerud Sheth is the co-founder and chief executive of Gupshup, a platform for cloud messaging and conversational engagement used by over 30K+ developers, and handling over 4.5 billion messages per month.
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