How a Simple Chatbot Solved a Complex Challenge?
Chatbots are computer programs that simulate natural conversations with humans through text or voice messages. They serve various purposes, including customer service, marketing, sales, education, and entertainment. In the banking sector, chatbots assist customers in obtaining information about their accounts and cards, conducting transactions, managing finances, seeking advice, and resolving issues.
Chatbots offer several advantages for banks and their customers.
They enable:
- Enhanced Customer Satisfaction and Loyalty: Chatbots improve customer satisfaction and loyalty by providing quick and convenient service 24/7.
- Reduced Workload on Call Centers: Automation of routine tasks and queries decreases the burden on call center operators and branch staff.
- Cost Savings: Time, resources, and personnel costs associated with customer service and support are reduced.
- Increased Revenues: Chatbots contribute to higher sales, cross-sales, and simplified customer onboarding processes.
- Valuable Customer Insights: Analysis of chatbot interactions yields valuable data on customer behavior, needs, and preferences.
The Problem
Before implementing a chatbot, the bank faced several challenges related to customer service, especially concerning account verification and receipt issuance through ATMs. Among these problems were:
Inconvenience and Delays for Customers
Customers had to spend time searching for the nearest ATM, queuing, entering PIN codes, selecting operations, and waiting for receipts to check their account balance, salary, or pension. This was particularly inconvenient for elderly or physically challenged individuals.
ATM Overload
Frequent ATM breakdowns and paper and ink shortages occurred due to a high volume of balance inquiries and receipt requests, resulting in customer dissatisfaction, complaints, and reduced trust in the bank.
High ATM Maintenance Costs
The bank incurred substantial expenses in maintaining ATM functionality, replenishing paper and ink, and repairing or replacing components. Additionally, the bank paid processing fees for each printed receipt, further increasing costs.
Inefficient ATM Use
Most ATM transactions were not related to cash withdrawals or deposits but were merely balance inquiries or receipt printing requests, underutilizing the ATMs and not generating revenue.
For instance, these issues were most apparent on pension payment days when each pensioner checked their balance at ATMs an average of eight times per day, causing long queues and discomfort for other customers.
Recognizing these challenges, the bank sought ways to improve customer service and enhance the overall banking experience.
The Solution
The bank decided to develop and launch a chatbot on two popular messaging platforms, Viber and Telegram. The primary objective of the chatbot was to send push notifications after each card or account transaction. Notifications included information on transaction success or failure and the account or card balance. This allowed customers to monitor their finances in real time without visiting an ATM or bank branch.
How the Bank Benefitted
The chatbot was introduced a few years ago and made available to all bank customers. Within the first month of operation, the chatbot achieved the following results:
- Over 10,000 customers subscribed to the chatbot, with approximately 100,000 active users.
- Balance inquiries and receipt requests through ATMs decreased by 90%.
- Inquiries and complaints related to payments, transfers, currency exchange, and account balances decreased by 90%.
- Sales and cross-sales of bank products and services increased by a staggering 600 times.
- Customer satisfaction ratings rose from 3.5 to 4.5 on a five-point scale.
The bank saved approximately 50,000 euros per month on ATM maintenance, receipt printing, and processing fees, resulting in the project paying for itself within a month.
The chatbot, a simple yet highly successful customer service solution, demonstrated that modern technology can improve convenience, speed, and service quality while reducing costs and risks. It also contributed to increased revenues and customer loyalty in the banking sector.
