By the way, did you know that robo-advisors hold the same legal status as human advisors? They are registered with the U.S. Securities and Exchange Commission to conduct business, and, therefore, they are subject to the same securities laws and regulations as traditional brokers. Their official designation is “Registered Investment Adviser,” or RIA. Most robo-advisors are members of the independent regulator Financial Industry Regulatory Authority (FINRA) as well. Consumers choose bots over human assistants for a simple yet irresistible reason: they provide absolute convenience. They are available 24/7, and they are ready to serve clients no matter what their current account balance is. According to Gartner, by 2020, customers will manage 85% of their association with businesses with no human interaction. Despite these statistics, about 60% of US financial services respondents said that they’re limited by regulations or budget issues to invest in such innovative development. The question is, what about the ones who aren’t?
For instance, the Bank of America uses Erica (a beautiful example of naming, considering the bank’s…name). This digital assistant provides customers with key and real-time updates on their finances using their favorite channel of communication. The predictive analytics and cognitive messaging help customers make payments, pay down debts, and check their balances. Besides, she directs people to look up their FICO score and check out educational videos and other content. The other example is Swedbank which uses a tool called Nina. The bank says that Nina resolves 40,000 conversations a month which is 81% of the issues. At the moment, Nina operates only in Sweden, but there’s a plan to introduce it to Baltic markets as well. “AI can help our customers become more digitized, for example by guiding a client in paying bills on the Internet,” Swedbank spokeswoman Josefine Uppling says. France doesn’t stay aside either. For instance, French bank Societe Generale developed an advisor that represents a full-fledged financial tool with various possibilities. “What started as a simple bot that could only answer a couple of questions about investment in equity funds, turned into a more complex application that can assist customers in selecting and subscribing to investment funds, transferring money between funds, bill payment or withdrawing money from their accounts,” Horia Velicu, head of the bank’s innovation lab, told Business Review.
“We know that our clients are increasingly looking for seamless, convenient and secure mobile banking experiences and by potentially adding a smart bot through Facebook Messenger, we’re helping to meet the evolving expectations of our clients,” resumes Linda Mantia, the executive vice president at Royal Bank of Canada.
In a nutshell, fintech chatbots can be used for the following purposes:
- taking and processing orders from social media channels
- providing bank account details
- managing consumer credit score
- notifying clients about upcoming payments
- helping consumers to create realistic budgets
Given the continuous use of the word “consumer”, it’s the right time to describe them. Who are they in the first place? The majority of them are Millennials and GenXers. Millennials (also known as Generation Y) represent the generational demographic group which follows Generation X. As stated in Wikipedia, “demographers and researchers typically use the early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years”.