Banking app: what to make of virtual assistants

Virtual assistants and other chatbots have become increasingly popular in recent years, and are now finding their way into the banking sector. How can these technologies meet the needs of our clients and how are they going to evolve in the future? myLIFE is here to explain.

Digital transformation: a key trend for banks

The banking sector has undergone significant change in recent years as a result of new technologies: remote banking, mobile apps, digital payment systems and the integration of artificial intelligence. Digital transformation has become essential in enabling banks to adapt to both new client expectations and changing regulations, and to remain competitive in a fast-changing industry.

People expect to be able to access their bank easily at all times, as well as for it to be reliable and offer personalised services. You want to be able to interact with it in real time, get clear answers and carry out your transactions from your computer, tablet or smartphone – completely independently and wherever you may be.

Financial institutions have already introduced a range of tools to help meet their clients’ needs. Remote banking services allow you to independently manage most of your banking transactions via your bank’s website/app. A subject-specific FAQ provides information on loans, savings, insurance, investments, etc. You can also take advantage of tutorials to help you carry out certain operations such as activating LuxTrust, blocking a bank card or adding an online payment system.

More recently, the integration of chatbots and digital assistants has taken service provision to new levels.

The virtual assistant represents the next stage in the chatbot’s evolution. It will not only respond to your requests, but also help you achieve your objectives.

Chatbots and virtual assistants: what are they?

When we talk about chatbots or virtual assistants, we are referring to computer programs powered by artificial intelligence (AI) that simulate a human conversation (often in the form of a chat or avatar) in order to answer your questions and/or help you with your enquiries.

Chatbots can interact with you in relation to specific subjects and in a predefined context in order to provide you with information in response to simple or frequently asked questions (opening times, document searches, transaction / bank card info, etc.).

Virtual assistants are a more advanced and versatile version of a chatbot. In addition to responding to your requests, they can carry out more complex tasks and take the context of your request into account. What makes them unique is that they learn as a conversation progresses, thereby offering you a personalised experience. They can help you solve problems, anticipate your needs, suggest products, etc.

“The virtual assistant represents the next stage in the chatbot’s evolution. It will not only respond to your requests, but also help you achieve your objectives,” explains Stefaan Roegiers, Head of Distribution at BIL. “If you ask a chatbot how to block your bank card, it will tell you how to do so – where to navigate to in the app, what steps to take… the virtual assistant will do it for you. It can also be proactive, offering you services that might be of interest to you based on your preferences and profile, for example.

These technologies will utilise various fields of artificial intelligence (large language model (LLM), machine learning, etc.) to meet your needs – needs such as understanding and answering questions, providing recommendations, recognising a document, detecting fraud, and so on. The aim of chatbots and virtual assistants is to respond quickly to client requests without a bank employee needing to get involved in the process every time.”

Chatbots, virtual assistants and AI for the benefit of clients and banks

Most major financial institutions have already integrated chatbots and/or virtual assistants of varying degrees of sophistication into their websites and mobile apps. Here are a few examples of the current and future benefits offered by these computer programs.

Delegating certain repetitive or administrative questions to a virtual assistant frees up bank employees’ time, allowing them to focus on more complex requests as well as activities with higher added value for their clients.

Optimising client support

The integration of digitalisation and artificial intelligence into the banking ecosystem is improving both client management and the range of services offered.

Available 24/7, these programs, which can often communicate in multiple languages, offer quick and effective solutions to simple everyday problems – and all within the bank’s reliable and secure environment. Here are just a few examples of how they can be used:

• • Guiding you in the use of online services: how to open an account, find an electronic document, reset your PIN, etc.
  • Gathering the information needed to resolve a situation: block a lost or stolen card, understand why a payment has been refused, fix a technical issue, etc.
  • Sending you notifications: recommendations in relation to managing your budget, alerts in the event of suspected fraud, etc.

“Delegating certain repetitive or administrative questions to a virtual assistant frees up bank employees’ time. This allows them to focus on more complex requests as well as activities with higher added value for their clients,” explains Mr Roegiers. It also means that a large number of requests can be handled quickly at any time, day or night, thereby improving the client experience.”

Personalising services

Analysing data in real time and recording your preferences allows for more effective monitoring and enables us to respond to your requests more efficiently.

The quality of the data proviced by the client is essential. They must be accurate, precise and up-to-date to enable virtual assistants to make appropriate offers.

The most advanced virtual assistants can handle complex banking queries. They can analyse your financial situation, objectives and preferences in order to identify the products and services best suited to your financial profile. They can make personalised recommendations regarding savings, investments and budget planning.

“A virtual assistant can be proactive. If the client has given their consent, they can be sent personalised proposals. Take, for example, someone who has a lot of money in their savings account, but no retirement product. The AI could suggest that they take out a retirement savings plan in order to help them prepare for their retirement and benefit from tax deductions.”

NB: To ensure an optimum level of service, the quality of the data provided by the client is essential. They must be accurate, precise and up-to-date to enable virtual assistants to make appropriate offers.

Artificial intelligence is also able to meet the very specific needs of the banking sector – particularly when it comes to security.

Improving security

Artificial intelligence is also able to meet the very specific needs of the banking sector – particularly when it comes to security, with some financial institutions using AI to collect and check the information provided by clients during the onboarding phase.

“The virtual assistant will send a notification asking you to update a document, such as an expired ID card. You will be able to take a photo of your new card, which the AI will then analyse, verify and save, thus speeding up procedures while complying with regulatory requirements and eliminating the risk of human error (e.g. typos).

For security reasons, we currently only use data that is known and validated by the bank – but we are increasingly moving towards the use of information whose origin is external. Europe, for example, is in the process of setting up the European Digital Identity Wallet, to which it will be possible to upload data authenticated by an authority (ID card, marriage contract, birth certificate, diplomas, etc.). In the future,”says Stefaan Roegiers, “if a client authorises the bank to access these items, they will no longer need to download their supporting documents on repeat occasions. This not only saves the client time, but also the bank, which can rely on the conformity of the documents.”

Finally, artificial intelligence can also be used to help detect anomalies or errors regarding financial transactions. By analysing large quantities of data, AI can identify and assess the risk of fraud by flagging up unusual transactions via the virtual assistant.

The human aspect remains essential

While the integration of chatbots and other virtual assistants offers undeniable advantages, these technologies cannot replace human interaction. Some complex issues or specific requests (investment advice, mortgages, inheritance, etc.) require the know-how and expertise of a genuine banking adviser.

“The virtual assistant is the banking agent of the future,” says Stefaan Roegiers. “Soon, a client’s first interaction with a bank will be via a virtual agent who will handle administrative matters. It is only in the second phase that the bank’s agent, an actual person, will step in to add value for the client. This is what we call a “phygital” approach: a combination of physical and digital. Both clients and banks can benefit from these technologies, but the human dimension will continue to play a crucial role in maintaining a good relationship.”

Combining technology (virtual assistants and AI) with human expertise is a real asset for banks, enabling them to offer a superior service to their clients.