Representing a Growth in Operational Savings of 3,400% from 2019
A new study from Juniper Research has found that the operational cost savings from using chatbots in banking will reach $7.3 billion globally by 2023, up from an estimated $209 million in 2019. This represents time saved for banks in 2023 of 862 million hours, equivalent to nearly half a million working years.
According to the new research, AI in Fintech: Roboadvisors, Lending, Insurtech & Regtech 2019-2023, chatbots can reduce excessive operational costs in financial services, by resolving customer queries in a fully automated way. As NLP (Natural Language Processing) evolves and domain expertise is added to AI systems, chatbots are demonstrating a proven record of seamless service delivery, which will drive adoption by initially sceptical financial institutions. This is reflected in a growth of nearly 3,150% in successful banking chatbot interactions between 2019 and 2023.
Chatbots in Banking Applications Becoming Dominant
Chatbot integration in mobile banking apps will be the dominant channel for chatbot-driven customer communications, accounting for 79% of successful interactions in 2023. This dominance is due to several reasons, primarily an increase in user preference for app-based banking, as well as the strong performance of early banking chatbots, such as Bank of America’s Erica.
Research author Nick Maynard explained: “Chatbots in banking allow heavily automated customer service, in a highly scalable way. This type of deployment can be crucial in digital transformation, allowing established banks to better compete with challenger banks”.
Insurance Claims Assessment Revolutionised by AI
The research also found that AI, including chatbots, will have a highly disruptive impact on insurance claims management, leading to cost savings of almost $1.3 billion by 2023, across motor, life, property and health insurance, up from $300 million in 2019.
Chatbots can automate post-incident data collection, with AI used to analyse the details/images provided using computer vision. These methods will not only save money for insurers, they will also reduce time to claim settlement, improving customer loyalty.