The Impact of Voice AI on Banking Industry


While banks are introducing internet and mobile banking, the adoption of newer technologies has become equally relevant. It is becoming challenging for banks to win over new customers and retain the existing ones. Banking customers expect on-demand, interactive and personalized experiences from their banks, similar to what they are getting from Google, Amazon, and Netflix.

Therefore, banks are striving to become far more customer-centric than they ever have been. Advancements in AI technology and the popularity of conversational interfaces, based on text and voice, have fueled the need for this new customer experience paradigm. It’s time for banks to interact with their customers in new ways using the most natural medium—voice.

Why Banks Are Shifting toward Voice-based Conversational Banking

Banks are transitioning from product-centric to customer-centric business models, and they are adopting new technologies to do it at scale. Customers who are so accustomed to Siri, Alexa, and Google listening, learning, and responding to their questions now demand to talk and get all their problems solved. Banks are capitalizing on this consumer and technological trends and are implementing voice-based conversational AI to enhance their CX strategy.

Let’s read more about why and how banks are shifting toward voice-based conversational banking.

  1. Higher customer engagement and satisfaction — by giving access to self-service bots

    Customer satisfaction deeply influences people’s perceptions of the banking brand. It directly impacts banks’ retention efforts and loyalty building. Maintaining a good CSAT seems complicated when studies show that one of the top three reasons customers switch banks is poor customer service.

    One of the significant challenges that customers face is that banks are never open or agents are never available when they need them most. For example, what if a customer’s credit card gets blocked or lost during the holiday season? Or, a customer wants to know about auto loans he is eligible for outside of office hours? Well, you have the answer: Real-time, AI-powered voice bots. Voice AI technology provides round-the-clock customer service—they answer anytime, in any timezone, and at customer’s convenience.

  2. Increase efficiency and reduce support costs — by scaling up voice operations

    Voice bots reduce the burden of bank employees by resolving repetitive queries, thus giving them time to focus their efforts toward tasks that require their expertise. As per a study by Juniper Research, it is estimated that for every query handled by a bot, banks can save 4 minutes of human staff’s time.

    Moreover, by allowing customers to engage with bots to self-serve for some basic account enquiries and to-dos, there is a drop in the number of calls and emails to banking advisors. The ticket resolution time decreases significantly.

  3. More personalizations — by deploying AI-powered virtual advisors 
    Voice AI personalized ban

    With voice bots, customers have a greater opportunity to lead the conversation and state their needs. Thus banks have access to highly valuable customer insights that can be combined with historical interactions and leveraged to reach customers with personalized support and product offerings. This drives engagement and cross-sells and upsells as customers expect their banks to predict and make recommendations just like their Netflix does.

  4. A necessity during the crisis — by implementing no-touch voice AI interfaces

    A crisis like the Covid19 has radically changed how banks operate and service their customers. Banks have limited their in-branch banking services and people have reduced their ATM visits. Bank call centers have become the primary customer touchpoint, and the call volumes are at a record high. This has created huge backlogs at centers that are operating with a minimum workforce. The majority of agents are working remotely and are under pressure as they face many communication barriers while taking calls from a home environment. Also, banks have no quality control on calls when the agents are at home.

    AI-powered voice bots can help banks overcome this crisis. Voice bots enable banks to power autonomous telephonic conversations at scale and offer instant, on-demand customer service. They can be monitored from anywhere and do not require physical space for deployment.

  5. Better debt recovery — by using virtual agents for payment collections and negotiations

    In specific banking scenarios like debt collection, voice bots have shown better recovery results as compared to human advisors. The debt collecting bots can understand and collect information related to nonpayments and provide opportunities for future negotiations. People are more honest and comfortable while discussing debt with bots as the experience seems safer and less judgmental to them.

    Examples of voice AI implementation in the banking industry

    The below infographic shows some of the banking use cases where real-time Voice AI technology can be implemented to drive customer engagement, increase customer satisfaction, improve operational efficiency, and reduce customer support costs.

    Final Thoughts

    Voice AI technology is transforming banking services and elevating the customer experience by providing greater personalizations and satisfaction to customers, minimizing costs, and improving operational efficiencies.

    Agara’s AI-powered voice agents provide self-service for routine financial queries and customer tasks in a natural conversational manner. Agara’s virtual agents are pre-trained to understand banking vocabulary and can track multiple intents while engaging in complex, multi-turn conversations. They come with ready-to-implement, pre-configured use cases and are architected to achieve high accuracy.
    Learn how Real-time Voice AI can help you deliver the best experience for your customers. Click here to Schedule a demo. In case of any queries, feel free to reach out to us at [email protected]

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