ChatGPT buzz raises the bar for banking chatbot capabilities (04/2024)

A 2023 Corporate Insight survey revealed that 24% of credit card app users had engaged with a virtual assistant in the past six months, a substantial increase from just 4% in 2019. Bank of Americas virtual assistant, Erica, has experienced steady growth, boasting 18.5 million active users by Q4 2023.

This surge in adoption is attributed to enhanced in-app capabilities and the growing buzz surrounding gen AI. And to meet shifting consumer expectations, banks are redesigning their chatbot interfaces to resemble gen AI-powered search tools.

Bank of Americas Erica now features a search bar instead of the traditional chat bubble, allowing users to interact more intuitively. While Erica has not yet incorporated genAI, its knowledge base and personalization have improved.

Zooming out, we must note that consumers value the proactive insights provided by gen AI and machine learning, such as personalized spending trackers and subscription monitoring. However, lingering negative perceptions from early, less sophisticated chatbots may hinder adoption.

To overcome this, gen AI-powered virtual assistants must deliver human-like responses and live up to the high expectations set by consumers other AI interactions.

Looking ahead, the integration of gen AI in banking chatbots is expected only to accelerate, with a majority of financial services executives planning to leverage the technology for customer service and personalization. As these tools become more sophisticated, they have the potential to revolutionize the way consumers manage their finances and interact with their banks. Zooming out, it’s clear that the future of banking is increasingly digital, and genAI-powered chatbots will play a crucial role in shaping this landscape. Banks that successfully harness this technology to provide seamless, personalized experiences will likely gain a competitive edge. However, they must also navigate the challenges of data privacy, security, and ethical AI deployment to maintain customer trust. As the technology evolves, we can expect to see even more innovative applications of genAI in banking, ultimately transforming the industry and redefining the customer experience.

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From payments and lending to investment and money management, tech providers are actively shaping the future of the financial landscape - even pushing the boundaries of currency itself. You might evaluate the impact of robo-advising on health management and examine portfolio recommendations from a diversified set of RAs and attempt to identify the factors behind proposed splits between asset classes.

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Doctorate of Business Administration (DBA) in Finance (online, 3 years part-time)

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