Artificial Intelligence has a significant influence on the finance sector. From insurance to investment banking, leveraging AI always delivers better results. Although the technology is still budding, the recent advancements have created quite the tremors around the world.

Yes, we are going to talk about today, what has been the talk of the town for the last many months, ChatGPT. As soon as this web application launched, people were fascinated by it as if it was making miracles.

Everyone started finding ways to benefit from using this marvelous app. Many experts were tinkering with ChatGPT in finance sector to find how it can enhance their fintech products and services.

One of the primary use cases found with the utilization of ChatGPT was chatbots. Although they are already used widely in many fields including finance, the advent of ChatGPT can help finance and banking professionals level up their game.

In this blog, we will discuss how chatbot technology can be useful for the banking and fintech sectors, its various use cases, and which companies are already utilizing it. So, let's get started.

Use cases of chatbots in fintech and banking

Chatbots are largely used by businesses to offer customer support and services, FAQs, and help customers with their queries.

ChatGPT in banking and fintech companies is leveraged for the same purpose. Integrating ChatGPT with chatbot technology allows fintech companies and banks to help their customers with banking transactions.

Chatbots can easily access customer data to offer personalized recommendations. Reduced costs, improved customer satisfaction, and increased efficiency are some of the benefits of using chatbots for fintech and banking.

Now, let's see what AI chatbots can do for your finance business.

1. Automate routine tasks

Yes, that is what AI is for right? To relieve human employees of their routine and mundane tasks like customer support and allow them to focus on core business operations. May it be risk assessment, risk management, fraud detection, or prevention, AI can do it all.

In addition to that, AI technologies are very efficient in providing real-time market data and analysis. This can come in handy for finance companies to make smart investment choices.

2. Next-level customer experience

Integrating AI with your offerings can enhance the customer experience. Just the fact that a chatbot is always available to listen to your problems or issues at any time of the day can keep the customers’ minds at ease.

And it doesn't end with noting down users’ requests and issues, AI chatbots such as ChatGPT will analyze the customer data and their past preferences to offer personalized suggestions.

AI chatbots are quick and provide efficient services that help fintech businesses increase customer loyalty and build strong customer relationships.

3. Enhance security measures

AI can also help you strengthen the security of your finance business and its digital platforms. AI technology is quite capable of detecting and preventing fraud. That’s why they are tasked with risk management and risk assessment procedures.

They can also monitor every financial transaction and if something seems suspicious, it is immediately reported. The use of ChatGPT in banking and fintech companies for security purposes can help financial crimes like money laundering.

Moreover, AI chatbots can also be used to educate customers about cybersecurity best practices and offer tips on how to secure their financial data.

4. Augment your marketing strategy

Yes, chatbots are not just for customer support, they can help you strategize your marketing campaigns too.

They can quickly analyze all your customer data and come up with the best course on how to attract new customers and engage with the existing ones as well.

If fintech companies leverage AI chatbots for marketing, they have far better chances of reaching a wider audience and building strong customer relationships.

5. Investment advice

Smart chatbots are capable of providing investment advice to customers. After analyzing their market trends, historical data, customer data, past investment decisions, preferences, behavior, and all, AI can suggest to the customer what might be the best investment option for them.

These chatbots also alert the customers when their market conditions change so if the customers want to act accordingly, they can do so quickly. Customers are also notified when their portfolio needs rebalancing.

AI chatbots like ChatGPT in fintech are leveraged to offer customized investment options or packages to customers and yield better returns on their investments.

6. Loan applications and approvals

Fintech companies can streamline their entire loan application and approval process using AI.

Chatbots help customers fill out their loan applications as well as solve queries about loan eligibility and other products. Also, as usual, chatbots offer real-time updates on their loan application status.

Automating the loan application and approval process saves a lot of time and costs for fintech companies that would have otherwise gone into loan processing which is needless to say, a very tiresome and time-consuming process.

7. Personal finance management

Managing personal finances is one of the fortes of AI. Chatbot services include bill payment alerts, expense alerts, budgeting, and personalized savings.

They also provide real-time updates on financial transactions and account balances so the customer can stay on top of their finances. This helps customers attain overall financial well-being.

ChatGPT in fintech use cases, is linked with digital wallets to enhance the digital payment experience of customers. It can help your customers make payments, track transactions, and receive personalized recommendations on financial products and services.

If a payment-related issue arises, then AI chatbots can help customers resolve them without any need for human intervention.

8. Generate More Conversions

Lead generation is probably the most widely used conversational AI use case in the banking sector. After assessing the user intent, the AI can provide a relevant suggestion.

More often, a customer is easy to convert when they get what they came looking for. And AI chatbots are more likely to offer choices that match their requirements.

Many fintech companies have deployed omnichannel chatbots which helps them cover more ground which brings in more leads and ultimately more conversions.

9. Collect Feedback

AI chatbots like ChatGPT in banking allow customers to provide their feedback regarding their experience with financial products and services.

This helps in understanding the expectations of the customers and improving the offerings accordingly.

Moreover, when your customers feel that they are heard and valued, their user experience as well as their loyalty to the brand increases by many folds.

10. Perform Uncomplicated But Critical Tasks

There will be times when the customers will need assistance with tasks like checking their account balances, locking or unlocking their cards, and resetting their passwords at a moment’s notice.

After a simple credential verification, customers can easily automate all of these tasks with the help of AI chatbots. They no longer have to wait in long queues to meet a finance or banking professional to get these things done.

An AI chatbot can render every bit of information related to the users’ account including credit card limits, cost and transfer limitations, recurring payments, card bonus points, pending transactions, and more.

Such a quick and accurate resolution of customers’ issues and queries in pressing times using AI chatbots can significantly enhance the CSAT score of your fintech company.

Fintech companies using AI

Here are some examples of how the top fintech and banking companies in the world are utilizing AI and ChatGPT tools to their advantage.

• Capital One: Providing personalized financial advice to customers is the primary reason why Capital One has adopted AI. Customers can get help from these chatbots to resolve their queries about finance management and more.

• JP Morgan: An AI-powered virtual assistant COiN is created by JP Morgan to handle back-office tasks like data extraction and contract analysis.

• Mastercard: Real-time detection and prevention of fraud are why Mastercard is utilizing AI. They have also enabled their chatbots with AI to offer smart financial advice to their customers about managing their finances and their accounts.

• Wells Fargo: AI from Wells Fargo analyzes all the customer data so that it can offer personalized financial advice. It also helps customers solve their queries and issues related to banking transactions.

Utilizing AI chatbots like ChatGPT in finance and banking sectors renders various benefits ranging from enhanced customer experience to improved work productivity. Both of these are vital for a financial organization to stay ahead of its competitors.

Future of AI in the FinTech Industry

As AI technology keeps evolving, tools like ChatGPT will have an important role to play in the fintech sector. And the chatbots are likely to become more sophisticated in the future.

Moreover, the applications and use cases will also increase from taking over routine and mundane tasks to performing critical business operations.

No matter how you look at it, fintech companies have to embrace AI technology and chatbot tools if they want to position themselves better in the market in the future.

What are your thoughts about it? Do you find tools like ChatGPT in fintech to be helpful?