Chatbots can do a lot more than just chat.
Yes, they can answer questions, sort complaints and resolve issues. But they can also analyze expenditure, execute payment transfers, make person-to-person payments, supply interest rate information and numerous other routine tasks for bank customers.
Chatbots are among the most prominent applications driven by artificial intelligence that are transforming banking as we know it. Others include the use of biometrics through face or fingerprint recognition to verify identity and enhancing security by recognizing existing and potential threats.
Ally Bank, the reincarnation of the former General Motors financing arm GMAC, is among the leaders in chatbot developmentOpens a new window  with Ally Assist, introduced in 2015, alongside and HDFC Bank, one of India’s largest institutions, with its Electronic Virtual Assistant launched in 2017 .
Saving time and expense
There is some pushback. Not everyone likes the idea of talking to or texting with a machine and a sizeable proportion of consumers still prefer a human agent, or a least a human option.
But as one-on-one personalization improvesOpens a new window , enabling the chatbot to adjust to needs of customers in real time, resistance is set to fade.
Juniper Research forecasts that banks will save $8 billion a year with chatbots alone, even before other uses of AI, much of which can be passed on to consumers. New AI apps for consumer use enable them to compare services and find the best dealsOpens a new window  — including helping consumers identify banks making the best use of AI.
AI can link to Alexa to enable bank customers to conduct transactions by talking to the Amazon vocal digital assistant. Banks are also engaging in research into natural language to make chatbot interaction more conversational.
Fingerprints, veins, facial recognition
Facial recognition will also be used with chatbots, enabling customers to conduct transactions without having to click on keys. When applied to payments, facial recognition eliminates the need for cash or payment cards.
Identity verification through biometricsOpens a new window opens up new pathways to speedier transactions. UK banks NatWest and Royal Bank of Scotland are testing a payment card that uses fingerprints to replace the PIN to authorize payments. Wells Fargo is using an eyeprint feature to give customers access to their account via mobile phones. Citi uses voice biometrics to authenticate customer identity while callers explain their issues. Barclays is taking fingerprints one step further and scanning finger veins to authenticate corporate customers.
Beyond customer service, banks are using AI to monitor all aspects of regulatory compliance. Unlike human compliance officers, computers don’t miss a thing.
Security enters the equation
AI includes machine learning. Apps are able to keep improving efficiency because in many cases they get smarter the more they doOpens a new window .
Banks are not the only sector using chatbots or other AI apps — there’s even a chatbot therapist that can advise you in a crisis. Chatbots are getting wide use in marketingOpens a new window and have become a must-have for every company that interacts with its customers.
In every industry, starting with the tech sector itself, technology cycles are getting shorter, making AI indispensable for keeping up and keeping secure — which is where the DevSecOps come in, an innovative security technology pioneered by the US Defense Department used to spot security threats through software built directly into the app.
Whether at the Pentagon, in the financial industry or elsewhere, the DevSecOps app enables an organization to process massive amounts of incoming data and make security adjustments accordingly. It’s an integral part of AI development and its penetration in software development will reach 90% by 2022Opens a new window , reckons IT consultancy Gartner.