Millennials prefer interacting with a chatbot than an actual person. A Gallup poll has confirmed a truth that has become self-evident i.e. text messages now outrank phone calls as the dominant form of communication among Millennials. They speak more to Siri and OK Google, than they speak to people.
In the age of quicker gratification, and shorter attention spans, the millennials prefer Artificial Intelligence to human delay. The increasing number of AI startups such as Arya.ai and Embibe are a symptom of this change. Nearly 300 startups are using some form of AI, according to Tracxn, a startup tracker.
Many startups in India are working with deep learning, which aims to make human effort minimal. Arya.ai works as an “enabler”. For instance, if a consultancy firm is building AI for its investment banking client, Arya.ai will provide the firm with the tools to build it, creating the “neural network”—a vast computing system that mimics the human brain; it will create a cloud system which will allow the AI to evolve, learn from its earlier tasks and apply them to the next one.
How some banks got it right
The digital natives prefer chatbots and AI for a smoother and integrated experience. They want to save time and are looking for instant need gratification. Some institutions such as banks and insurance agencies have adapted to this change in their customer base.
While ATMs were cooler some years ago, now micro ATMS have become more popular. The digital natives find such cashless POS and e-wallets more to their convenience.
SBI has launched SIA, an AI-powered chat assistant that addresses customer enquiries instantly and helps them with everyday banking tasks such as cash deposits and withdrawal just like a bank representative. HDFC Bank has developed an AI-based chatbot Eva, that can assimilate knowledge from thousands of sources and provide simple answers in less than 0.4 seconds.
ICICI Bank, India’s second-largest private sector bank has deployed software robotics in over 200 business processes across various functions such as reconciliation of ATM declined transactions and updation of declarations for avoiding tax deduction on fixed deposits. ICICI seems to be referring to what is often referred to as “robotic software” – a kind of software generally focused on automating office work. They capture and interpret information from systems, recognize patterns and run business processes across multiple applications to execute activities, including data entry and validation, automated formatting.
Axis Bank launched an AI & NLP enabled app, Conversational Banking, to help consumers with financial and non-financial transactions, answer FAQs and get in touch with the bank for loan other products. Axis bank is seeing significant improvement in efficiency, time and cost savings.
These successful examples are fair pointers of how the millennials avoid walking into a bank, taking a token, waiting for their turn. They have made instant gratification a way of life, and feel entitled that the service providers will cater to their needs with appropriate technology.
ML helps to customise user experience
ML helps to know the customer better and tailor recommendations like a Netflix or Youtube video recommendation engine. A case in point in wealth managers using Robo-advisors. Robo-advisors are algorithms built to calibrate a financial portfolio to the goals and risk tolerance of the user.
People enter their financial goals (for example, retiring at age 65 with INR 50,00,000 in savings)- age, income, and current financial assets. The ML powered robo advisor then spreads investments across asset classes and financial instruments in order to help reach the goals of users.
Companies are turning to AI and ML to step in and automate repetitive tasks and alleviate mundane functions from customer service agents which allows them to build better relationships with customers and focus on tackling more complex customer conversations.
AI provides intuitive and personalised customer experience. Robotics and intelligent process automation will enable banks to provide real-time products and services to customers by bringing down the turnaround time in servicing the customers.
To conclude, the digital natives have little patience with delays and red-tapes. They are keen towards AI because it saves their precious time by reducing human errors. So, the institutions adopting AI must remember that without integrated experiences, even AI will not help them to draw the millennials in the financial fold.
Come to Fintegrate to know more about the scope of Artificial Intelligence in including the digital natives in the financial fold. Book your seats here.