Chatbots Could Help Banks Realize Billions in Savings, Report Suggests

Advances in Artificial Intelligence (AI) and Natural Language Processing (NLP) could result in chatbot programs that will save banks billions of dollars and hundreds of millions of workforce hours, a recent report from UK-based Juniper Research has found.

According to the study, operation cost savings from using chatbots in banking will reach $7.3 billion globally by 2023, up from an estimated $209 million this year. In terms of time, this equates to 862 million hours saved for banks in 2023.

The report, AI in FinTech: Roboadvisers, Lending, Insurtech & Regtech 2019-2023, predicts that advancing AI and NLP software will enable chatbots to resolve customer queries in a fully automated way and will drive adoption in financial institutions skeptical to implement the services. The report asserts this will result in a 3,150 percent increase in banking chatbot interactions between 2019 and 2023. The dominant channel for chatbot integration will be mobile banking, the report said, accounting for 79 percent of successful integrations in 2023.

Chatbots in banking allow heavily automated customer service, in a highly scalable way,” said report author Nick Maynard in a press release. “This type of deployment can be crucial in digital transformation, allowing established banks to better compete with challenger banks.”

Click here to read the press release from Juniper Research.