By Dean Baker, Squad Lead, BFSI – Infobip

Conversational banking, sometimes called chat banking, refers to the use of Artificial Intelligence (AI) and chat technology to help customers conduct traditional daily banking activities via digital communications channels on a mobile device.

Dean Baker, Squad Lead, BFSI – Infobip

Leveraging mobile messaging platforms, conversational banking has ushered in a new era of seamless and personalised banking experiences, tailored to meet the unique needs and preferences of each individual.

When conversational banking is delivered well, customers get both a more convenient and rewarding service experience. In other words, conversational banking leads to improved customer experience and ultimately improved customer loyalty.

Notably it has transformed how customers engage with their banks, providing a seamless and personalised experience using mobile messaging. However, a solid foundation for any conversational customer experience today is omnichannel communications, which is the ability to reach customers where and when they want, on their preferred channels.

Through chat apps, conversational banking provides instant, contextual, and personalised communication. Clients have the convenience of engaging with chatbots or agents 24/7 over a single platform where conversation history is saved for later reference.

An important aspect of banking is the ability to seamlessly shift the “conversation” to a human agent if and when needed while having the ability to present the engagement thus far to the agent, so as not to lose conversational context.

Conversational context

For example, should the customer have a question the chatbot cannot answer or if the customer gets stuck in the automation journey, they can be transferred to an agent with the conversational context, so the agent carries on where the conversation stopped, without the customer needing to explain everything all over again.

Choice is key and the caveat to an enhanced customer experience is to have the ability to deliver conversational banking over the customer’s channel of choice with the ability to move between channels without losing the context of the “conversation”.

One of the crucial customer benefits of conversational banking using chat apps is enabling customers to reach the financial institution whenever and wherever they may be. This will help build the trust required for successful long-term client-bank relationships.

The more a customer interacts with their bank through these conversations, the more a bank understands the customer’s preferences, habits, and needs – making it easier to personalise future transactional and promotional messages.

Conversational banking also brings various benefits to financial institutions, including speeding up time to resolution of queries or FAQs and automating the collection of data. Automation in call centres not only reduces costs but also enhances customer satisfaction, as customers who have a positive experience with a brand tend to report higher levels of satisfaction.

Revenue growth

Additionally, revenue growth can be driven through upsell, cross-sell and lead-generation efforts that can be personalised through conversational banking. Using conversational banking with AI-supported chatbots can also significantly reduce agents’ time spent on real-time support calls. Financial institutions can therefore support more customers with the same number of agents using chat apps. This reduces the pressure on customer service representatives and frees them up to handle more complex customer transactions.

AI technology plays a very important role in powering conversational banking experiences, as it enables chatbots to understand customer voice or text communications and to reply, simulating actual conversations. AI uses Natural Language Processing (NLP) to allow chatbots to determine meaning from language through common data elements.

However, the key challenge for financial institutions to overcome when looking to adopt a conversational banking journey is to choose the right communications platform and partner. Communications Platform as a Service (CPaaS) and conversational AI should give organisations all the tools they need for a great conversational banking experience. However, the key is to be able to customise these tools to align with their unique use cases and understanding of what their customers want.

The disruption within the banking sector is evident, as seen by the remarkable growth of fintech startups that have multiplied sevenfold over the past five years. Traditional banks must recognise and address these emerging challenges to remain relevant and competitive by embracing digital transformation effectively and adopting innovative strategies and new technologies to position themselves to thrive.

Metrodigital Ltd., homegrown satellite pay television and owners of Silver Lake Television (SLTV), has promised to impact positively on the lives of Nigerians and shore up foreign exchange for the country.

Dr Ifeanyi Nwafor, the company’s managing director who stated this in an interview in Abuja, said that the plan is to create thousands of jobs for the teeming Nigerian youths, adding that dealers were already springing up across the country.

“Each dealer will have his own installer and offices would be opened in this regard. So, SLTV is going to help in creating a lot of jobs and will also create another platform for innovations,” he said.

The businessman said Nigeria’s focus was on leading the world’s industry. He noted that the Nigerian music industry was already making waves worldwide and expressed hope that Nigeria’s indigenous pay-TV industry would also experience the same quickly.

‘’The success will bring in foreign exchange earnings for the country,’’ he said.

Efficiently managing your business finances isn’t just a task, it’s the key to scaling your business for sustainable growth.

Several tools exist today to help businesses achieve their financial management goals and establish themselves in a very competitive market.

One such tool is the virtual account, offering several benefits for multinational corporations, startups and SMEs, helping these businesses achieve their financial management goals while scaling sustainably.

In our article, “What is a virtual account and why you need it for your business,” we explained the basic concept of virtual accounts, including the types of virtual accounts, and benefits. Taking it forward with this SeerBit article, we explain the various roles that virtual accounts can play in ensuring businesses achieve efficient financial management.

• Cash Flow Management

Virtual accounts offer a level of precision and agility that the traditional bank account does not offer businesses in today’s world. Virtual accounts give businesses more control over their funds, as they can easily segregate or compartmentalise funds for various expenses, regulate their cash flow in real-time and ensure safety for the business’ cash reserve. The ability to segregate funds for different short-term needs, such as supplier payments, tax payments, staff payments, and other long-term investments allows the company to make wiser financial decisions and ensures there will always be capital when it is needed.

• Streamlined Reconciliation

Virtual accounts help to streamline reconciliation for your business, making the process seamless and fast by matching transactions with corresponding records for each unique virtual account. Every virtual account has a unique identifier, making it easy to match both outgoing and incoming transactions on the account with the business’ accounting records. This process is automated, consequently saving valuable time and reducing the possibility of human errors. Hence, you get accurate financial reporting in real time to make informed business decisions, thereby resolving disputes quickly and improving customer satisfaction.

• Risk Mitigation

Virtual accounts play a crucial role in risk mitigation for businesses by providing an extra layer of security and control over financial transactions. The ability to segregate funds for specific purposes minimises the risk of mixing funds and potential misuse. Additionally, virtual accounts offer customisable access controls and permissions, allowing businesses to restrict access to authorised personnel only, thus reducing the risk of fraud and unauthorised transactions. This heightened level of security not only safeguards financial assets but also enhances trust and confidence among stakeholders, ultimately contributing to more efficient financial management practices.

• Cost Optimisation

Virtual accounts contribute significantly to cost savings for businesses by streamlining banking operations and reducing associated fees. Through the consolidation of funds into virtual accounts, businesses can negotiate better terms with banks and optimise their banking relationships, potentially leading to reduced transaction costs and account maintenance fees. Furthermore, virtual accounts eliminate the need for maintaining multiple physical accounts, thereby reducing administrative overhead and freeing up resources for other strategic initiatives. By leveraging virtual accounts, businesses can achieve greater efficiency in their financial management processes while simultaneously lowering operational expenses, ultimately boosting their bottom line.

• Adaptable and Scalable

Adaptability and scalability are other features of virtual accounts that make them effective for managing your business finances. They are customisable and flexible, and this allows them to adapt to whatever preferences or needs that your business has. It also means that you can configure your virtual accounts to meet specific objectives and requirements of your business. So whether you are just starting your business or already growing, virtual accounts can meet every business need at different points, even when you start to scale. This adaptability is good for your business, especially if you’re experiencing fluctuating sales volume.

Conclusion

Virtual accounts are an effective and versatile tool for your business to optimise the financial management process and enhance control and efficiency in the cash management system.

Switch to virtual accounts today!