Banking chatbots are becoming increasingly popular, especially since the commercial spread of generative AI. Yet, did you know that they have been used for quite some time already? Let’s explore the history and evolution of chatbots in banking, from their beginnings to the state they are currently in!
Banking Chatbots: The Beginning
While you might perceive banking chatbots as something relatively new, they have been aiding customers for over two decades. Yes, the first chatbots were introduced in the early 2000s, though they lacked the functionalities of those we see nowadays.
At the time, these chatbots were used for really basic banking operations. For example, they could provide the clients with information on their account balance or extract stock prices. Nevertheless, they were based on simple commands and pre-programmed tasks, and many of their functionalities are nowadays replaced by web apps.
The Golden Age of Banking Chatbots
The 2010s, but especially the second half, brought major changes when it came to the quality of the chatbots used in banking. Many commercial banks started to introduce their own systems, which offered many more functions than their predecessors. At the time, AI was already a thing, though we still didn’t have a highly-developed generative artificial intelligence—that’s why, although these chatbots were much better than the initial ones, they still lacked the efficiency and effectiveness of those we have today.
Let’s take a look at some examples of the chatbots developed at that time.
Luvo (Royal Bank of Scotland)
Launched in 2016, Luvo could solve basic customer inquiries. What’s important is that it used AI to learn from its interactions with the clients, gradually getting better.
Erica (Bank of America)
This is perhaps one of the most widely recognised chatbots used in banking. Launched in 2018 by the Bank of America, Erica could assist customers with numerous tasks, including:
- checking account balances,
- transferring funds,
- tracking spendings,
- giving financial advice based on the given customer’s data.
It’s important to note that Erica, despite the times, has already offered some personalisation in the form of financial advice—something that nowadays has become a standard in the banking industry.
Banking Chatbots Nowadays
Currently, banking chatbots are evolving rapidly. The introduction of new, more developed gen AI models enables them to go beyond simple queries and take over solving even the more complex ones. Such chatbots may even utilise banking documents to provide the most accurate answers.
A sub-branch of chatbots also emerged—AI-powered co-pilots. These act as chatbots for customer service agents, enabling them to generate responses to customer queries quickly. Humans still need to verify such answers (their accuracy and relevance), yet this speeds up ticket responses significantly. Hence, if the 2010s were the golden era of chatbots, then the 2020s are the platinum period for them. What will the future bring? This remains to be seen.
The Takeaway
Are banking chatbots the future of finance, or will they remain a tool in the hands of experienced customer service specialists? We believe that, despite their rapid development, chatbots won’t remove humans from the equation, though they will be adopted more widely. The key here is to find the golden means.
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