Using chat banking to succeed in the digital revolution

Bank of America chat banking

It’s official: The future of banking is mobile. New data from the Smart Money People found that 78% of customers in the United Kingdom prefer mobile banking over online - a 75% increase from 2017. And innovative offerings like chat banking improve customer loyalty, and competitiveness in a crowded market.

Customers need banks to meet them on the platforms they know and love. In retail, the growing popularity of chat commerce shows that young consumers prefer engaging with brands on  channels they use most, like WhatsApp,  and SMS.

More than 60% of respondents said they want to receive service-based messages from banks, according to the Vibes Transactional Messaging Consumer Report. Innovative companies are paying close attention and are moving fast to address the needs of modern customers.

“Many of the world’s largest enterprises are in the process of digital transformation — not by-election, but for survival,” says Evan Kohn in an excerpt taken from a Forbes piece on chat banking and conversational AI.

The Bank of America tripled its mobile banking budget in 2015, acknowledging that cutting-edge mobile features are critical to attracting customers. Wells Fargo offers in-demand mobile transfer options, on top of security and mobile wallets. In e-commerce, businesses that offer chat commerce are increasing revenue by up to 25%.

The pioneers of digital disruption package experiences that improve their customer satisfaction, and so customer service has never been more important. Millennials, the group of consumers who will soon have the most spending power, said if they didn’t have a seamless account opening experience, they would be less likely to buy additional products from a bank, and were less enthusiastic to recommend the bank to others, according to a Deloitte study.

Many banks offer mobile solutions but make the mistake of introducing very limited functionality, which encourages dissatisfied customers to revert back to online channels.

Use chat banking to improve customer service

Let’s take a look at how organizations can deliver better mobile experiences by providing the basic services expected with mobile channels.

Mobile transfers like bill payments, international, and peer-to-peer transfers are among the most in-demand mobile features. These are the features customers care most about, found the BI Intelligence Mobile Banking Competitive Edge Report.

Clients also want to perform simple tasks quickly. For example, banks could allow customers to easily check their balance without having to log in first. A mobile channel must make it easier for customers to do business, including providing value-adds like a free mini-credit report, for example.

These features needn't be delivered via a mobile app -  many users are frustrated with downloading new apps, and this alone easily makes chat banking the most simple and cost-effective form of digital banking. Customers prefer chat banking and chat commerce for convenience and simplicity; they can easily and securely connect with banks and eCommerce sites on social media platforms.

Imagine this scenario:

A customer wants to transfer money. Instead of going online, or logging into their banking app, they head to WhatsApp and send a message to their bank contact: “What’s my balance?”. The balance is texted. What about new products? The customer types: “I need a new credit card.”. A quote and application form are sent back immediately.

The First Bank of Nigeria partnered with Clickatell Transact recently to launch a chat banking channel on WhatsApp, so that customers can easily perform balance checks, transfers, and payments. This is one of a number of the largest banks in Africa that has partnered with Clickatell as an enabler of this valuable channel.

Clickatell’s chat banking solution allows you to connect with your customers on their favorite messaging channels  Customers will love this approach: it’s fast, easy, and finds them on channels they’re already spending the most time on.