Bank cost saving via chatbots to reach $7.3 billion by 2023
A new study from Juniper Research has found that the operational cost savings from using chatbots in banking will reach $7.3 billion globally by 2023, up from an estimated $209 million in 2019. This represents time saved for banks in 2023 of 862 million hours, equivalent to nearly half a million working years.
According to the new research, chatbots can reduce excessive operational costs in financial services, by resolving customer queries in a fully automated way. As NLP (Natural Language Processing) evolves and domain expertise is added to AI systems, chatbots are demonstrating a proven record of seamless service delivery, which will drive adoption by initially sceptical financial institutions. This is reflected in a growth of nearly 3,150% in successful banking chatbot interactions between 2019 and 2023.
Chatbot integration in mobile banking apps will be the dominant channel for chatbot-driven customer communications, accounting for 79% of successful interactions in 2023. This dominance is due to several reasons, primarily an increase in user preference for app-based banking, as well as the strong performance of early banking chatbots, such as Bank of America’s Erica.
The research also found that AI, including chatbots, will have a highly disruptive impact on insurance claims management, leading to cost savings of almost $1.3 billion by 2023, across motor, life, property and health insurance, up from $300 million in 2019.