Trust vs. Convenience, or Chatbots in Banking

In my earlier piece, A Blueprint for Chatbots in Banking, I have briefly reviewed the current chatbot landscape when it comes to banking, as well provided some simple tips as to how one can utilize this technology in the banking sector.

Today I would like to put a focus on one thing. Well, in fact, two, or to be more precise - a trade-off between two things. Two things that are essential building blocks for chatbots going mainstream in the financial services. And these are trust & convenience.

Trust and convenience are essential building blocks for chatbots going mainstream.

But first, let us remember the steps outlined earlier.

Utilizing Chatbots in Banking

So, in my earlier piece I have provided a simplified 6 step strategy which can help to utilize the chatbot technology in banking. Here it is once again:

1. Build a simple chatbot for your bank, or use the technology developed by others (preferably - the best ones in the field).
2. Integrate it within social networks such as Facebook's Messenger, WhatsApp and others. In essence, be where your CUSTOMER is.
3. Continuously develop your technology so that it would be as similar to human interaction as possible. If necessary, pass difficult queries to the human-led support.
4. Focus on the customer experience and added value -- help your customers to take control of their financials, provide savings/investment advice, give insights, rewards etc. 
5. Collect data and use it to provide personalized, tailor-made offers to each and every of your customer. 
6. Enjoy.

A Battle Between Trust & Convenience

Looking at the 6 steps strategy, I would like to draw your attention to Step 3, which is probably by far the most important one. Here is precisely where the trade-off between trust & convenience comes into play.

I have stressed this numerous times - trust is the most important component in any relationship, and it is especially acute for banking since here we are speaking about highly sensitive topic, which is people's money. Hence, without trust, nobody would ever do business with you, and if you are a bank - nobody would ever keep their hardly earner money there. That is for sure.

Remember this - TRUST is the most important component in any relationship. In banking, it is even more acute.

Banks have solved this puzzle by ensuring high security standards. Security guards, lots of cameras, unbreakable safe etc. were used for signaling that it is safe to do business here. Therefore, that is why we still see a lot of people preferring to go to a bank branch as opposed to do everything online. This is because the old way is safe, or safer for majority of the people.

Nevertheless, with the technological advancements, convenience started to play a very important role in banking as well. If you can do everything online (on your phone, tablet, PC etc.), there is no point in wasting your time to travel to a physical bank branch. Yet, this was not without security & trust. Unique passwords for each login, two factor authentication, encryption etc. ensured equally the same level of security, which has increased trust, and hence popularity of online/mobile banking has spiked.

Not only the above is not clear when it comes to chatbots. Also, the feeling that you are dealing with a robot makes things much more difficult.

Hence, it comes down to two things. First, convenience has to be complemented with trust, which in essence means that high levels of security have to be ensured. Second, chatbots have to become more human so that people would feel that they are interacting with someone who cares and can solve even the most difficult problems they face.

Bringing it all together

It is obvious that chatbots are yet to show their true potential in every industry, and banking in particular. When trying to leverage this technology with regards to financial services, you not only have to take into account the strategy that I have shared earlier. Rather, one has to ensure not only convenience, but trust. Then and only then this technology can truly benefit both customers and businesses.