Evolving AI enhance conversational banking efficiency

It also boosts banking revenue significantly.

The implementation of AI-driven solutions in the banking industry has improved both operational efficiency and customer satisfaction. With conversational banking enabling a 25% revenue boost, chatbots and virtual assistants are now poised to handle routine queries and assistance.

"To measure digital engagement, we have several metrics," explained Kelferd Hor, Vice President for Investors Digital Experience at RHB Banking Group. These metrics encompass both qualitative and quantitative methods. 

"For a quantitative method, we are talking about first contact resolutions," he elaborated. Chatbots serve as the initial touchpoint for customers, handling queries before escalating unresolved issues to live chat agents. "The first contact resolutions will determine how many queries from the customers can be understood and answered by the chatbots," Hor stated.

Despite these advancements, the banking industry faces several challenges with conversational banking. Hor acknowledged that while AI is evolving, its current market capabilities are not yet perfect. 

"The AI capability today in the market, in terms of accuracy, is not 100%, but then it would evolve over time," he noted. Inaccurate or inconsistent AI responses can lead to operational and reputational damage. "It actually raised security concerns at the same time in terms of how we are going to comply with the Central Bank of Malaysia," Hor said.

Another challenge is the integration of AI with existing banking systems. "In the banking environment, we have multiple core banking systems and also the old legacy system that we are using," Hor explained. Integrating these systems requires time and additional effort, which can hinder the progress of adopting conversational banking.

Looking ahead, Hor anticipates several trends in conversational banking. The most prominent trend is the further involvement of AI, particularly in supporting multilingual capabilities. "This will be able to support conversational banking in handling more languages," he predicted. AI is also expected to enhance the customer experience by moving from robotic responses to more human-like interactions. 

Lastly, predictive analytics will play a significant role in future trends. "We are talking about predictive analytics, how the AI can actually help in providing more predictions or to give a recommendation for customers in a conversational banking channel," Hor concluded.