Conversational AI in Banking and Financial Services

In recent years, conversational AI has emerged as a game-changing technology in the banking and financial services industry.

Conversational AI, or the use of machine learning algorithms to facilitate natural language conversations between humans and machines, has the potential to transform the way banks interact with their customers, providing personalized and convenient services.

The rise of conversational AI technology has been driven by the demand for personalized and efficient services, as well as the increasing sophistication of AI technologies.

The Rise of Conversational AI in Banking Sector

The popularity and adoption of conversational AI solutions in financial service providers and banking are on the rise, owing to the increasing demand for personalized and convenient services. According to a recent survey, 88% of banking executives believe that Conversational Artificial intelligence will become a major channel for customer interactions in the near future.

The leveraging conversational AI for banking is driven by several factors:

Firstly, customers are increasingly demanding personalized and convenient banking services. They want to be able to access banking services on the go, using their mobile devices or smart speakers. Conversational AI provides a seamless way for customers to access these services, without the need for phone calls or in-person visits.

Secondly, advances in natural language processing and machine learning technology have made conversational AI technology more effective than ever before. The accuracy of voice recognition technology, conversational IVR, and AI Voice bots has improved significantly in recent years, enabling conversational AI to understand and respond to complex queries accurately.

Thirdly, the COVID-19 pandemic has accelerated the adoption of conversational AI in banking. Due to social distancing measures, customers are increasingly turning to digital banking channels for their banking needs. Conversational AI provides a convenient way for customers to access banking services, without the need for physical contact.

Leveraging Conversational AI in Banking and Financial Services

Benefits of Conversational AI in Banking

Conversational AI offers numerous benefits to both banking customers and financial institutions. For customers, conversational AI technology provides a seamless and convenient way to interact with their financial institutions, eliminating the need for phone calls or in-person visits. It enables users to perform tasks such as checking their account balances, making payments, and managing their finances, using simple voice commands or chatbots.

For banks, conversational AI results in enhanced customer engagement, reduced operational costs, and improved efficiency. By automating routine customer interactions, banks can free up their staff to focus on more complex tasks, such as resolving customer complaints or providing financial advice. It also enables banks to offer personalized service recommendations to customers, based on their transaction history and preferences.

Moreover, conversational AI provides banks with valuable data on customer behavior and preferences, enabling them to identify new revenue opportunities and improve their services further. By leveraging machine learning algorithms, banks can analyze customer data and develop insights into customer journeys that can be used to improve their existing products and services.

Customer-Centric Use Cases of Conversational AI in Financial Services and Banking

Conversational AI has transformed the way banks engage with their customers. By leveraging the power of artificial intelligence, banks can now offer personalized recommendations, provide financial advice, and facilitate transactions with ease. Here are some customer-centric use cases of conversational AI in financial services and banking:

1. Personalized Financial Advice

Assist customers with financial planning by generating personalized financial advice based on their financial behavior and goals. Banks can leverage conversational AI to recommend investment opportunities and retirement plans based on a customer’s risk tolerance and investment preferences. Customers can also receive regular updates on their investment performance via their preferred channels, like proactive messaging such as SMS or email.

Credit score improving by Generative AI

2. Transactional Assistance

Provide a range of transactional activities, such as checking account balances, transferring funds, and paying bills. These chatbots can also provide real-time alerts, such as notifications when a payment is due or when a credit limit has been exceeded. This feature ensures that customers don’t miss important deadlines and stay on top of their finances.

3. Product Recommendations

Offer customers with product recommendations by analyzing their financial behavior and purchasing patterns. For example, a customer who frequently uses their credit card for online purchases may receive recommendations for credit cards that offer rewards and cashback on online purchases.

Similarly, a customer who frequently transfers funds to their family members may receive recommendations for a checking account that offers free intra-bank transfers.

4. Enhanced Customer Service

Conversational AI can also assist customers with their queries and complaints, offering 24/7 support. Customer support chatbots can handle a range of customer queries well, such as questions about account balances, transaction history, and interest rates. These chatbots can also escalate queries to human agents when necessary, ensuring that customers receive prompt and accurate responses.

By tailoring conversational AI solutions to the specific needs of the banks, these use cases can be adapted to offer a highly personalized experience to customers.

How Carta is Scaling its Self-Service with Conversational AI

In this video, David DeMarco, the SVP of Business Technology at Carta, discusses how integrating AI and automation has significantly elevated Carta’s customer experience.

Read the Carta case study to learn more.

Aisera’s Conversational AI Solution For Banking

A conversational AI platform is a potent tool for banks. These platforms allow institutions to roll out AI-driven virtual and AI Voice Bot. They seamlessly integrate across various channels, including websites, messaging apps, and mobile platforms.

At their core, these platforms utilize advanced natural language processing. This enables them to accurately interpret customer inquiries. Coupled with sentiment analysis, they’re equipped to gauge satisfaction levels in real-time.

The power of machine learning shouldn’t be underestimated. As these platforms leverage it, they continually adapt to changing customer behaviors. This adaptability results in banks being able to offer more personalized services. The outcome? Enhanced customer experiences and increased brand loyalty.

One of the significant advantages for banks is automation. By automating routine customer interactions, there’s a dual benefit: heightened efficiency and marked cost savings. It shifts the focus, allowing banks to allocate resources to complex tasks that demand human expertise.

To sum it up, conversational AI platforms aren’t just beneficial — they’re essential. Banks looking to truly elevate customer support and craft superior experiences will find them indispensable.

Customer Service that has been improved by using Conversational AI in Carta

Aisera’s AI and Automation: Boosting Customer Service Metrics in Financial Services

Learnings from the Best in Conversational Banking

As conversational AI becomes increasingly popular in the banking industry, many institutions are looking toward the early adopters of this technology to learn from their success stories. Some of the best examples of the conversational banking experience are provided by Wells Fargo, Bank of America, and Capital One.

Wells Fargo was one of the first banks to launch a virtual assistant named Fargo that uses natural language processing to help customers with a range of tasks such as checking account balances, paying bills, and tracking expenses. Fargo is available through SMS, which enhances the accessibility of the chatbot.

Bank of America

Capital One

Bank of America launched Erica, an AI-powered digital assistant that can perform a range of tasks such as account management, bill payment, and fraud detection. Erica’s strength lies in its personalized recommendations, which are based on the customer’s spending habits and financial goals. Capital One has invested heavily in conversational AI, with its virtual assistant Eno being one of the most feature-rich chatbots in the industry. Along with the standard features such as balance checking and transaction tracking, Eno can also provide virtual card numbers for online purchases.

These banks have demonstrated that success in conversational banking requires a comprehensive understanding of customer feedback, needs, and preferences, along with a willingness to innovate and experiment with new technologies.

Leveraging conversational Artificial Intelligence in financial services is not only limited to American Banks. Similarly, Indian Banks are using Conversational AI chatbot technology as AI-powered virtual assistants.

For instance, Kotak Mahindra Bank in India has created its own virtual assistant named KEYA. Keya is a smart bank assistant that helps customers with credit and debit card inquiries, loan applications, and answering questions.

Other banks seeking to implement conversational AI solutions should look towards these early adopters as valuable sources of inspiration and guidance.

The Future of Conversational AI in Financial Services & Banking

The rise of conversational AI in banking is set to continue, with more banks expected to adopt these technologies in the coming years. The use of banking chatbots and voice assistants is expected to become increasingly prevalent, providing customers with a more personalized and convenient banking experience.

The continued leveraging of conversational AI for banking is expected to bring significant benefits to both customers and banks, transforming the way banking services are offered and delivered.

Financial advice by Generative AI for the Bank customers

Taking AI a Step Further: Generative AI in Banking

While conversational AI has already made its mark, another transformative technology, generative AI, is paving the way for even more advanced interactions in the banking sector. By combining deep learning algorithms with natural language processing (NLP), Generative AI empowers AI virtual assistants to understand and respond to customer inquiries in a more personalized and dynamic way.

Generative AI in Banking can be harnessed for various applications. One key use is generating personalized product recommendations derived from a customer’s financial history and preferences. For instance, if a customer frequently allocates funds towards travel and dining, Generative AI in Banking can propose relevant credit card offers and loyalty programs that resonate with these spending habits.

AI & Automation for Financial Services

In recent years, AI and automation for Banking have made a big difference in the banking and financial sector. As customers ask for more personalized and fast services, banks are using more of this AI and automation. By doing so, they’re not only making their processes smoother but also improving customer satisfaction.


Conversational AI has emerged as a game-changer in the banking and financial services industry, offering new and innovative ways to improve customer experience while boosting operational efficiency. As we have seen, conversational AI is rapidly gaining popularity in the banking sector, driven by factors such as increasing customer demand for personalized and convenient services and the need for cost savings and improved efficiency.

As machine learning continues to advance, the role of virtual assistants and voice assistants will become even more critical in delivering exceptional customer experiences. To stay competitive and provide the best possible service, banks must embrace conversational AI and other innovative technologies fully. Book a free Conversational AI demo today!

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