Bank cost saving via chatbots to reach $7.3 billion by 2023

Chatbots help banks to save billions – research. Source: shutterstock.com

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.

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