One of the major components of smart banks is Conversational AI, which is becoming a key part of the financial services industry. Other components of smart banks include self-service machines, automated teller machines, and Conversational AI. The most popular smart bank in the UK is Revolut, which has gained a strong following among consumers. Smart banks can also help consumers meet their slow-money challenges and provide enormous payoffs for banks. Banks can expect to see a 14.2 percent increase in revenue per year from these operations, a reduction in customer churn, and a substantial cost reduction if they digitize these operations.
Conversational AI is a key component
The technology behind conversational AI has many uses, especially in the financial services industry. Let’s take a simple example: a customer contacts a live chat application and asks for help taking out a loan. The conversational assistant directs the customer to a resource that explains consumer loans.
Increasing consumer trust in conversational AI is a key component for smart banks. According to a report published by Capgemini Research Institute, only 46% of consumers trusted conversations with AI. As more consumers trust AI-based interactions, banks can use this opportunity to improve their remote services. However, banks should keep in mind that there are many challenges that can arise when integrating conversational AI into their services.
Self-service machines reduce cost per transaction
Self-service machines in smart banks have been around for many years, but their rollout has created long lines. While traditional bank employees may be available in the lobby to assist customers, smart machines enable a more efficient process. Using built-in video communication, interactive ATMs allow for face-to-face communication and self-service capabilities 24 hours a day. Banks can now reduce cost per transaction by as much as 80 percent by introducing smart machines.
Smart banks deploy self-service machines in areas where customers are frequenting. Self-service machines are highly versatile, and can be relocated as needed. They can be installed in public places and branches to maximize reach. A kiosk can be configured remotely without sending a team to set up and maintain it, and the bank can upgrade it if necessary without the need to hire additional staff. Lastly, a kiosk can be used to perform a variety of banking services, such as account opening.
Automated teller machines improve customer experience
In the digital age, smart banks are providing customers with more convenience than ever before. This is especially important in a world where millennials increasingly use mobile and online banking channels. Increasingly, banks are also looking for ways to reduce their operational costs, increase their efficiency, and improve their client experiences. Smart Teller Machines offer an efficient, convenient alternative to teller lines while improving the customer experience. These machines are an excellent solution to the problems faced by traditional banks and their clients.
Smart ATMs offer a range of additional functionality beyond cash dispensing, giving customers the ability to conduct various tasks that would previously require an appointment at the local branch. For example, smart ATMs can help customers make bill payments, top up their mobile phones, and transfer funds and even donate money. Moreover, smart ATMs can facilitate cardless transactions, so customers no longer have to carry their wallets around.
Revolut is most in-demand smart bank in the UK
Revolut is a digital bank and payments platform that has raised PS24bn in its latest funding round – more than the value of High Street banks such as NatWest. The company is only six years old and has already secured investment from SoftBank and New York’s Tiger Global Management. Its latest funding round saw the firm raise $800m from the investors, including a 5% stake from SoftBank. It has 15 million users in the UK and is currently undergoing the process of obtaining a banking license in the UK.
Revolut’s success has led to increased scrutiny. After a BBC investigation in early 2019, the Financial Conduct Authority launched an investigation into Revolut after a former employee complained that Revolut’s systems were not effective in flagging suspect payments. Although the company disputed the allegations, the Financial Conduct Authority has since launched an investigation. While Revolut denies the allegations, it has made several key management changes as a result of the BBC investigation.