Demystifying finance AI chatbots for fintech firms

Finance AI chatbots are redefining how financial businesses serve customers. Does this mean your fintech company needs a finance AI chatbot? Learn in this blog.

Ana Rukavina

“I’m still learning about that! How about I help you with something else? Here’s what I can do…” Are these basic chatbot interactions frustrating your customers and affecting your customer experience? You should switch to intelligent conversational experiences that are AI-powered. Today’s customers expect easy digital interactions at every step, which is why fintech firms turn to AI-powered chatbots to deliver these experiences.

Fintechs are innovators at the forefront of the digital revolution, challenging the status quo of traditional financial institutions. With their reputation for agility, adopting conversational AI experiences isn’t just an option – it’s in their digital DNA.

McKinsey’s research shows that revenues in the fintech industry are expected to grow almost three times faster than those of traditional banking sectors between 2023 and 2028. Fintechs will continue to benefit from the radical transformation of the banking industry, rapid digital adoption, and eCommerce boom in developing economies. This growth demands accelerated evolution, and finance AI chatbots are essential to keep pace.

Finance AI chatbots are redefining how financial businesses serve customers, offering round-the-clock support, personalized insights, and unprecedented convenience.

However, the terminology surrounding this space can be confusing. You might hear terms like financial chatbots and finance bots interchangeably. While similar, there’s a subtle distinction: financial chatbots emphasize conversational interaction, while finance bots typically focus on automating specific financial tasks through programmed commands.

So, does this mean your fintech company needs a finance AI chatbot? Let’s dive in and explore the potential benefits and use cases.

Unveiling the chatbots: What’s the difference?

Before we explore the benefits, here is an in-depth breakdown of the differences between a finance AI chatbot and a finance bot.

Finance AI chatbot is a virtual assistant powered by artificial intelligence, designed to answer customer questions in a natural, conversational way, complete routine tasks like checking account balances, transfers, and bill payments, and interact with customers 24/7, delivering personalized and immediate support.

A finance bot is an automated tool focused on performing specific tasks based on pre-defined instructions and rules, offering limited interaction, often relying on buttons, menus, or pre-set commands. But is lacking the ability to engage in flexible, human-like conversations.

Now that we have covered the terminology, let’s break down the problems fintechs often face.

Fintech challenges to consider

Fintechs are celebrated for their speed and security, but the rapid shift to mobile banking demands even greater innovation.

When aiming for the conversational banking experience, they often face these challenges:

  • User acquisition: How do you make onboarding faster and easier?
  • Customer experience: How do you ensure online banking is a streamlined experience?
  • Costs: New hiring, upgrading security – will the expenses increase?
  • Fraud prevention: how do you minimize fraud and prevent hacking? (An issue that concerns the whole banking industry)

Chatbots could be the solution to these common fintech problems.

Top use cases and examples for finance AI chatbots

Finance AI chatbots provide various services, including customer service, lead generation and onboarding, financial advice and education, and fraud detection. Some finance chatbots can even approve customers for loans and insurance claims instantly.

Here are real-world scenarios:

Customer service

Fintech chatbots go beyond simple balance checks and bill payments. They can troubleshoot technical issues, explain transaction histories, update contact information, and even offer proactive notifications for low balances or upcoming billing due dates.

By integrating with customer data platforms, chatbots deliver highly tailored experiences. They can greet customers by name, remember preferences, and use past interactions to provide relevant offers or support.

This translates to:

  • Faster resolutions
  • Reduced wait times
  • Improved customer satisfaction

Zenith Bank was able to automate its processes by setting up a chatbot, which they call ZiVA.

ZiVA enables customers to complete financial transactions and receive real-time support 24/7. Now, Zenith Bank customers can contact ZiVA to open new accounts, receive instant notifications, check their account balance, transfer funds, confirm cheques, pay bills, and apply for loans.

Lead generation and onboarding

Beyond enhancing customer support, chatbots also excel at proactively engaging new customers.

AI-powered chatbots in finance can gather crucial information (income, investment goals, etc.) to pre-qualify leads, helping sales teams.

They can also answer product questions (“What are your interest rates for savings accounts?”), explain features and benefits, and even guide users through the initial steps of the application process.

Resulting in:

  • Smoother and more engaging experience
  • Saved time
  • Boosted conversion rates

Reflect boosted monthly active users while ensuring continuity of in-app usage after onboarding by creating end-to-end customer engagement journeys with Answers, Conversations, and Moments.

Financial education and advice

Fintech AI chatbots are more than just support tools; they become personal finance coaches, offering bite-sized lessons on budgeting, debt management, or the basics of investing. Interactive quizzes and calculators can further enhance engagement.

The chatbot can suggest relevant articles, videos, or tailored financial plans based on user profiles and interactions. For complex situations, they can seamlessly connect users with human representatives.

Translating into:

  • More engaged customer base
  • Empowering users with knowledge
  • Customers making informed financial decisions

Fraud detection and security

AI-powered chatbots can analyze spending patterns and transaction data in real-time. They can alert users to unusual activity (“Did you authorize a purchase in a foreign country?”), helping prevent fraudulent transactions.

They simplify security protocols, using biometric authentication (voice or facial recognition) or personalized security questions, reducing friction while maintaining robust protection.


  • Advanced security
  • Higher trust
  • Fraud and account takeover prevention

Hong Leong Bank clients received their PINs faster because of the newly implemented process that bypassed many touchpoints of standard, letter-based processes. And because SMS is delivered much quicker than an envelope. Accordingly, customers could activate and start using their credit cards right away.
Secondly, the bank obtained additional insights into the delivery flow, which it didn’t have before. It was able to track if the message was delivered or not. If the message with a PIN was not given, they could offer an alternative way of providing it.

The power of chatbots: Unveiling key benefits for fintech companies 

According to The Economist, 46% of banks agree that AI can help them achieve their business goals to a great extent.

Almost 60% use AI to prevent fraud, 54% leverage its potential to optimize IT operations, while others use this technology for digital marketing, risk assessment, and personalizing the customer experience.

These applications point to a wide range of benefits for fintech companies:

Improved customer experience

Chatbot prompt: “Are you ready to save money?  I am available 24/7 and provide fast service and personalized solutions. Ask me anything!”

According to a Boston Consulting study, nearly 43% of customers are likely to switch banks due to poor digital customer service. And the same percentage of customers in the USA use chatbots to deal with their banking problems instead of going to the bank the traditional way.

That is why it is essential to implement chatbots that provide:

  • 24/7 availability: Customers can get immediate support anytime, regardless of time zones, working hours, or holidays.
  • Faster response times: Customers prefer talking to chatbots rather than going to a branch. One reason is that they do not have to wait in long lines before getting their answers; they can do that from the comfort of their home.
  • Personalized interactions: Chatbots can learn from customer preferences and use this knowledge to tailor interactions for a more human-like experience.

Reduced costs

Chatbot prompt: “I can provide instant answers, automate tasks, and help you with all finance-related questions.”

Ensuring quality customer service without deploying chatbots means hiring many agents in your contact centers, working day and night. You can imagine how costly this is. That being said, messaging clients and offering support through chatbots can help you minimize those costs.

  • Automate routine tasks – Chatbots can assist human agents and take over repetitive tasks (balance checks, FAQs). This also frees contact center agents to focus on higher-value activities.
  • Resource allocation – More focused human expertise delivers higher customer value, increasing ROI.

Enhanced efficiency

Chatbot prompt: “I’m available anytime, always learning to serve you better.”

Let’s compare a human agent and a chatbot. Humans can only concentrate on one request at a time, while chatbots can handle hundreds or thousands of transactions and inquiries anytime. Financial AI chatbots can take over simple service requests and take some tasks off your agents’ shoulders, allowing them to focus on more complex questions.

  • Streamline processes – AI finance chatbots can speed up onboarding, loan applications, and other tasks through guided interactions.
  • Improve efficiency – Chatbots can pinpoint bottlenecks and suggest opportunities for system refinements.
  • Data-driven insights – By analyzing conversations, chatbots can pinpoint trends in customer behavior and pain points, supporting product and marketing strategies.

Increased accessibility

Chatbot prompt: “Ready to chat in your preferred language (text or voice)?”

Your customer service team should reflect the global diversity of your clientele, meaning you need agents proficient in as many languages as possible. But if you implement chatbots, this isn’t an issue. They can help overcome language barriers and make financial services more accessible to diverse populations. This opens new market segments and contributes to financial inclusion.

  • Global presence – Chatbots provide multilingual support, making services accessible 24/7 globally.
  • Inclusivity – financial services chatbots help fintech companies serve diverse needs, ensuring everyone gets the needed services, from the tech-savvy to those with limited digital literacy.

Competitive advantage

Chatbot prompt: “Ready to experience the future of digital banking? Let’s chat about how I can simplify your finances with innovative tools and support.”

Competitive advantage can be achieved in two ways – internally and externally. Most benefits were customer-focused, but even your employees can benefit from financial services chatbots. They can act as virtual assistants for financial advisors and provide quick answers when facing customers or direct employees through internal processes such as documenting daily progress, sharing documents, and more.

Externally, your clients will love the added simplicity chatbots bring by providing instant and personalized experiences.

  • Innovative customer experience – Fintech companies can demonstrate a commitment to innovative, cutting-edge, customer-centric technology and offer engaging customer experiences that set them apart from traditional players.


In the world of finance, technology should serve people. Finance AI chatbots put customers at the center, giving them instant answers, proactive guidance, and control over their financial lives.

The transformation is already underway. Are you prepared to take the next step?

Provide a modern customer experience that sets you apart in fintech

Discover Answers

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Mar 7th, 2024
8 min read

Ana Rukavina