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September 1, 2023

Chatbots in Finance: Benefits, Examples, and Future

Looking to learn more about chatbots in finance? Discover how chatbots are transforming customer service and personal finance management in this comprehensive guide

Alex Drozdov

Software Implementation Consultant

The emergence of chatbots has significantly improved the way businesses interact with their customers. Financial institutions are no exception here. As technology continues to advance, more and more financial organizations are adopting both rule-based and AI-based chatbots to automate routine tasks, improve customer engagement, and reduce costs. 

If you think about adding this solution to your application or website, this article is for you. We are about to explore the benefits, challenges, and opportunities of using chatbots in finance, as well as emerging trends and predictions for their future in the fintech industry.

What are chatbots and how do they work in finance?

Let's start with the simplest part—the definition. In a nutshell, chatbots are software programs designed to mimic human conversation and respond to user queries in a natural language. They usually apply artificial intelligence and natural language processing techniques to understand the user's questions and provide relevant responses.

In finance, this type of software automates customer service and support. They can help customers with their queries related to account balances, transactions, payment methods, and other financial services. You can also integrate a chatbot into various communication channels like messaging apps and voice assistants.

Benefits of chatbots in the financial service industry

Benefits of Chatbot in Fintech

24/7 availability

Unlike live agents who have limited working hours, chatbots can work round the clock, providing customers with assistance whenever they need it. This availability improves customer satisfaction as customers can get their questions answered at any time. This 24/7 availability also helps fintech companies cater to customers from different regions and time zones, without requiring additional staffing resources.


The cost of maintaining a chatbot is significantly lower than that of employing a team of customer service representatives. The software can handle a high volume of queries simultaneously, without any breaks or overtime pay, making them a cost-effective solution for fintech companies looking to improve their customer service offerings.

Faster response times

Chatbots are designed to operate in real time, providing immediate help and reducing the time it takes for customers to get their issues resolved. Faster response times also help improve customer satisfaction, as customers are more likely to engage with a company that can address their queries promptly.


By analyzing customer data, chatbots can identify customer preferences, behavior patterns, and other relevant information, allowing them to provide tailored recommendations and support. This personalization can help improve the customer experience, as customers feel understood and valued by the company.

Improved efficiency

Chatbots can handle a large volume of queries simultaneously without the need for breaks or time off, converting them into a highly efficient solution for customer service and support. By automating customer service, bots can help reduce the workload of human representatives, allowing them to focus on more complex queries that require a human touch. These solutions can also be used to automate other processes within the fintech company account opening, loan applications, and payment processing, further streamlining operations and improving efficiency.


As fintech companies grow and expand their customer base, chatbots can be easily scaled to handle increased volumes of queries without the need for additional resources or staffing. By leveraging bots for customer service and support, fintech companies can better manage their resources and scale their operations, ultimately leading to increased profitability and growth.

Increased customer engagement

Technically, this benefit stems from all the points we mentioned above. Thanks to the speed, personalized approach, and availability, customers feel more welcomed and appreciated. It helps nurture loyalty and build better client relationships: Customers are more likely to return to a company that provides an engaging experience.

Chatbots and customer service

The role of chatbots in customer service

Chatbots can truly boost your customer service. They can handle a wide range of queries and provide immediate responses to frequently asked questions, reducing the workload of human representatives and allowing them to focus on more complex queries. These solutions can be integrated with other systems within the fintech company like account opening and loan applications, and lead to streamlined processes and improved efficiency. Examples of chatbots used in customer service in finance

To showcase to you how bots are used in finance, we have collected a list of the most efficient and famous ones:

  • Erica by Bank of America: Erica is a chatbot assistant offered by Bank of America that provides customers with support for banking-related queries.

  • Amex Bot by American Express: The Amex Bot is made by American Express and helps customers get support for card-related queries like checking account balances, making payments, and redeeming rewards.

  • Eno by Capital One: Eno helps Capital One’s clients with things like checking account balances and making payments.

  • Ally Assist by Ally Bank: This banking chatbot uses artificial intelligence (AI) and natural language processing (NLP) to provide customers with support and assistance 24/7. Customers can access Ally Assist through the Ally Mobile App or website to get answers to their questions and complete tasks related to their accounts.

  • Ava by Aviva: Ava is an insurance chatbot that can help customers with a variety of tasks, such as answering questions about their policies, providing quotes for new policies, and assisting with claims.

  • KAI by Kasisto: With KAI, customers can access their financial information and complete transactions through a simple and intuitive conversation, without the need to navigate complicated menus or interfaces.

Chatbots for Customer Service

Chatbots and personal finance management

Applications of chatbots in personal finance management

  • Budgeting

Chatbots can be implemented in personal finance management to help people with budgeting. Users can get real-time insights into their spending habits, enabling them to track their expenses, set budgets, and make informed financial decisions. Bots can also provide users with reminders and alerts, helping them stay on top of their finances and avoid overspending. For instance, a chatbot can alert a user when they are about to exceed their budget for a particular category, such as dining out or entertainment.

  • Investment management

Investment management can be a complex and time-consuming task, requiring people to research different investment options, monitor their investments, and make informed decisions based on market trends and economic conditions. Chatbots can provide users with real-time insights into their investments, enabling them to track their portfolios and monitor market trends. Additionally, AI-powered chats can update users on their portfolio's performance, alerting them to any changes that require attention.

  • Bill payment

Chatbots can also be used for bill payments, making it easier and more convenient for users to manage their expenses. With a chatbot, users can set up automated payments for their bills, eliminating the need to manually pay bills each month. Moreover, this software can be integrated with any payment platform, enabling users to pay bills using their preferred payment methods, such as credit cards, debit cards, or bank transfers.

Chatbots and Personal Finance Management
  • Financial planning

Bots can provide users with information on different financial planning strategies, such as saving for retirement, building an emergency fund, or paying off debt. They can also help users develop a budget and savings plan that takes into account their income, expenses, and financial goals.

  • Credit monitoring

People can work with finance chatbots to track credit scores and monitor any changes to their credit reports. With a chatbot, users can receive real-time updates on their credit scores and credit reports, including any changes, errors, or inaccuracies.

  • Loan management

AI-powered solutions can provide users with information on different loan options, such as interest rates, terms, and eligibility criteria. They can guide users through the loan application process and provide recommendations based on their financial profile.

  • Personalized recommendations

Personalized recommendations are a key application of chatbots in finance, as they enable users to receive customized advice and insights based on their unique financial situation. By analyzing user data and preferences, chatbots can provide tailored recommendations on a range of financial topics, such as budgeting, saving, investing, and debt management.

The future of chatbots in finance

Emerging trends in the use of chatbots in finance

New trends emerging in finance chatbots point to an increasing reliance on this technology for financial services. Here are some of the key trends that are becoming more popular in fintech:

Trends in the Use of Chatbots in Finance
  • Voice-enabled chatbots: With the growing popularity of smart speakers and voice assistants, there is a shift towards voice-enabled chatbots in finance. Voice-enabled solutions can provide a more natural and conversational experience for users, making it easier for them to manage their finances on the go.

  • Integration with other technologies: Chatbots are being integrated with other technologies, such as artificial intelligence and machine learning, to provide more sophisticated and personalized financial advice. By analyzing user data and behavior, they can provide targeted recommendations that align with users' unique financial goals and preferences.

  • Multi-lingual support: As financial services become more global, there is a growing need for multilingual software. It is beneficial to financial institutions to provide a more inclusive and personalized experience for users in different regions and countries.

  • Hybrid models: Some financial institutions are adopting hybrid models, where chatbots work alongside human advisors to provide more personalized and comprehensive service. Hybrid models can provide the best of both worlds, combining efficiency and accessibility with the expertise and human touch of human advisors.

  • Enhanced security features: With the rise of cyber threats, there is a growing need for enhanced security features. Financial institutions are investing in chatbots that use biometric authentication and other security measures to protect users' sensitive financial information.

The use of chatbots in finance is expected to grow in the coming years as financial institutions seek to provide more efficient, accessible, and personalized financial services to their customers. By leveraging emerging technologies and trends, you can transform the way your clients manage finances in the future.

Challenges and opportunities for chatbots in finance

While chatbots in finance offer many benefits, there are also some challenges and opportunities that financial institutions need to consider.


  • Integration with legacy systems

  • Security concerns

  • Limited customer trust


  • Improved customer engagement

  • Cost savings

  • 24/7 availability

  • Enhanced data analytics

  • Scalability

While there are some challenges to adopting chatbots in finance, the opportunities they offer are significant. You can improve customer engagement, reduce costs, and gain a competitive advantage in the market.

Predictions for the future of chatbots in finance

The future of chatbots in finance looks promising, with significant growth and development expected in the coming years. Here are some predictions for the future of this technology in finance:

Predictions for the Chatbots in Finance
  • Increased adoption: Chatbots are expected to become more widespread in finance, with financial institutions adopting them for a wider range of services and applications.

  • More sophisticated capabilities: Bots are likely to become more sophisticated, with enhanced natural language processing and artificial intelligence capabilities that enable them to provide more personalized and intuitive services.

  • Voice-enabled chatbots: Voice-enabled chatbots are expected to become more prevalent, as more users adopt voice assistants in their daily lives.

  • Chatbots working alongside humans: Hybrid models that combine the power of AI with human advisors are likely to become more common, providing customers with the convenience and accessibility of chatbots, while still offering the human touch and expertise of human advisors.

  • Integration with other technologies: More businesses integrate bots with other technologies, such as blockchain and big data analytics, to provide more advanced and secure financial services.

  • Multi-lingual support: Chatbots that support multiple languages are expected to become more prevalent, catering to the needs of customers in different regions and countries.

  • Greater emphasis on security: Security will continue to be a major concern in finance, with chatbots incorporating more advanced security measures, such as biometric authentication, to protect users' sensitive financial information.

Why choose Yellow as your chatbot provider in finance?

Yellow has a team of experienced and skilled software engineers who are well-versed in the latest technologies and programming languages needed to create advanced chatbots. We can provide customized chatbot solutions tailored to the specific needs of financial institutions, ensuring that the chatbot meets their business goals and objectives. 

We offer ongoing support and maintenance to ensure that the chatbot remains up-to-date with the latest trends and technological advancements in the field. Our security team can also provide you with expertise in security and compliance to ensure that the chatbot is secure and complies with industry regulations. Feel free to drop us a line and get a time estimate and learn more about our pricing.

To sum it up

Chatbots can be used for a variety of applications in personal finance management, including budgeting, investment management, bill payment, financial planning, credit monitoring, loan management, and personalized recommendations. The future of chatbots in finance is bright, with increased adoption, more sophisticated capabilities, voice-enabled chatbots, integration with other technologies, and a greater emphasis on security predicted.

🤖 Are chatbots secure and trustworthy?

They can be secure for fintech if they are properly designed and implemented with strong security measures, such as encryption and authentication protocols. However, it's important to continuously monitor and update chatbot security to mitigate potential risks and ensure customer data protection.

🤖 How do chatbots handle sensitive financial information?

They use encryption and authentication protocols to protect data during transmission and storage. Additionally, AI-based bots can be designed to alert customers if any suspicious activity is detected and prompt them to take necessary action to protect their accounts.

🤖 Can chatbots help me save money?

Yes, chatbots are used in finance for reducing the need for human customer support, automating routine tasks, and simultaneously handling a large volume of inquiries. This can lead to cost savings in staffing, training, and other operational expenses while improving efficiency and customer satisfaction.

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