A chatbot is essentially an artificial intelligence (AI)-supported application that talks with an individual to resolve an issue or to respond to a particular query. Chatbots have magnetized the recognition of companies across businesses and are being seen as a way to make a difference in a progressively saturated landscape. The banking sector has been a noteworthy implementer for newer technologies, mainly owing to dependence on trust, speed, and communication. Chatbots within banking division expedites the communication and create customer relation via cognitive analytics by understanding thinking of the customer for prompt answer. Chatbots are combined with several appliances like web browsers, mobile devices, and other that assist to decreasing customer efforts and to enhancing productivity.
The key factor expected to propel the growth of the global chatbots for banking market during the forecast period is the rising user base of smart devices like tablets & smartphone and increase in implementation in BFSI sector of chatbot. Also, factors like cost-saving, improved customer support, ease of use, promotion & cross-selling, prevention from fraud, and high efficiency will further drive market expansion. Moreover, technological improvement in voice recognition system, development in machine learning & AI, growing online banking users along with escalating internet penetration has surged the demand for chatbots in the banking sector, boosting market growth.
The global chatbots for banking market is diversified based on application, product type, and region. The global market, by product, is categorized into bots for social media, bots for service, bots for marketing, bots for payments/order processing, and others. The global market, by application, is categorized into financial services, banking, insurance, and others.
Regionally, Asia Pacific is projected to witness lucrative growth in global chatbots for banking market during the forecast period. The regional expansion is contributed by the several startups spending in machine learning technology and chatbots. Further, enterprises are quickly incorporating the use of chatbots within their customer service processes that presents smooth performance, dealing with several customers, and improving the customer-engagement methods.
Some of the prominent players actively participating in the global chatbots for banking market include PayPal, LivePerson Inc., Nuance Communications Inc., Artificial Solutions, Creative Virtual Ltd., eGain Corporation, 7.ai Inc., Next IT Corp., Aivo, and Inbenta, among others. To cite, in July 2019, an artificial intelligence (AI) chatbot was developed by Floatbot for Andhra Bank for its central banking servers to back its 50 million users. It is intended to offer digital engagement and programmed consumer support, which went through a meticulous testing process entailing over 50,000 queries.