At a time when the financial services industry is being challenged by escalating costs and low customer satisfaction, bots are increasingly being deployed to enhance productivity and customer experience. Advanced technologies such as big data analytics (BDA), machine learning (ML), artificial intelligence (AI) and blockchain are changing the way financial services are delivered and consumed. As apps give way to bots, a transition from transactional to conversational interaction can be expected between financial services providers and their customers. Bots facilitate customers to use the channel of their choice and engage at their convenience, ensuring better services and customer satisfaction.
"The disruptive features of bots are its speed of execution and ability to accurately respond to queries," explained Deepali Sathe, ICT Senior Industry Analyst at Frost & Sullivan. "The ability of bots to effectively handle repetitive tasks creates opportunities for robotic process automation (RPA) and chatbots that respond immediately to customers. Solutions that are easy to deploy and pre-designed vertical bots are likely to have a significant impact on the industry."
Frost & Sullivan’s recent analysis, The Role of Bots in Financial Services, 2018, examines the scope of applications of bots in the global financial services industry and their impact on the industry. It also discusses technologies that empower bots, global market trends, and growth opportunities. The study includes company profiles of market participants and recent investments and collaborations evident across the industry.
"Bots are channel-agnostic and can be deployed on websites, mobile phones, internal organizational systems, messaging apps, and social platforms," noted Sathe. "However, ambiguity in regulations, lack of standards, and a fragmented market hinder rapid growth. To harness opportunities in such a market, companies need to collaborate to create a bot ecosystem that can help them scale up, push for favorable regulations, and launch innovative, industry-specific solutions."
Adoption of bots by financial services firms is on the rise, and strong growth opportunities include:
• Vertical-specific bots equipped with capabilities to meet stringent regulatory and compliance requirements.
• Bot platforms that enable a wider range of services and products for customers and can easily manage scaling up/down.
• Options that enable cloud and on-premise deployment, given the sensitivity of financial services data.
• Partnerships to expand product line and customer base.
• Ensuring security of data.
“Conversational AI is altering traditional methods of engagement between financial firms and their customers. Enhanced efficiency, productivity and resource optimization are some of the other benefits that companies can expect to derive after implementation,” said Adrian Drozd, ICT Research Director at Frost & Sullivan.
The Role of Bots in Financial Services, 2018 is part of Frost & Sullivan’s global Big Data & Analytics Growth Partnership Service program.
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The Role of Bots in Financial Services, 2018 / ME2F-33