Chatbots Are the Keys to Saving Money and Improving UX

Apr 09, 2019

By 2025, the global chatbot market is projected to reach $1.25 billion, according to a report by Grand View Research. The industry is expected to thrive as more businesses realize chatbots help significantly reduce operating costs.

This is why it is no surprise that chatbots have nestled into most sectors, including retail, healthcare, and even banking. Research show it will really pay off for banks.

The operational cost savings from using chatbots in banking will reach $7.3 billion globally by 2023, up from an estimated $209 million in 2019, according to a new study by Juniper Research. Chatbots also are expected to save banks 862 million hours, equivalent to nearly half a million working years, in 2023. According to Juniper’s “AI in Fintech: Roboadvisors, Lending, Insurtech & Regtech 2019-2023, chatbots help them save time and money by resolving customer queries in a fully automated way.

As artificial intelligence (AI) and machine learning technologies evolve, chatbot features will be enhanced, eventually boosting their demand in the market. Since the technology can enhance user experience and save businesses money, chatbots of clearer path to mainstream adoption than ever before.

What Are Chatbots?

A chatbot is an interactive application created to interact with humans through textual conversations through messaging services, such as Facebook Messenger or Whatsapp. Many times, chatbots are created using artificial intelligence (AI) technology, but they also can be created using a set of rules.

Chatbots rely on natural-language processing to understand and respond to human demands and commands. Also, their abilities to understand human speech and respond intelligently continue to get better.

Data shows that chatbots are an important part of any business plan because more people are using messaging apps than social media to communicate.

Chatbots and Banks

Chatbots are being used in places that at first did not seem like a good fit, banking. Banks are using chatbots to help customers with simple payments and account inquiries as a way to save time and money. Banks always struggle with providing a quick, quality customer experience, and chatbots have been one solution for that problem. The most promoted of them is Bank of America’s Erica tool, which works with the financial institution’s mobile app to answer customer questions.

With growing consumer preference in banking on mobile apps, expect more banks to integrate chatbots into their businesses. This also helps them compete better with financial technology companies, which already are ahead on user experience, automation, and convenience.

Chatbots Making Their Ways into Other Types of Businesses

Despite some of having a tepid response to chatbots due to security and the loss of human interaction, more and more major companies, like Starbucks, eBay, Sephora, and British Airways have embraced their use.

As chatbots improve, expect more businesses to follow. In the future, interactive artificial intelligence will become the norm when it comes to customer service.

Those merchants that fail to start integrating AI and machine learning into their business will suffer because they will have failed to give customers complete, automated, streamlined experiences. That is something no merchant can afford.

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If you need a merchant account so you can accept credit and debit card transactions, then turn to (EMB). It works with all types of businesses, including high-risk merchants and those with no previous processing histories. Apply now using EMB’s simple online application process.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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