Financial technologies improvement: messengers to replace banks in future

03 July 2017
Financial technologies improvement: messengers to replace banks in future

Pavel Salas, CEO at eToro social network for investors, says that 2017 is followed by the active development of financial technologies. Well, one can already conduct money transmissions, obtain credit and set up an account using messengers. And soon, social networks will allow to carry out investment operations.

Why chatbot implementation is profitable for financial institutions

People quickly get used to high-quality service and comfort. Previous year, Facebook provided companies with an opportunity to create their own chatbots. As the result, more than 34 thousand virtual assistants appeared on messenger in a year. Some of them were used for customer support and others for purchases and money transferring.

Examples of applying Facebook bots for financial operations:

  • UK TransferWise launched the chatbot, allowing to transfer money immediately from one part of the world to another;
  • US Wells Fargo developed the bot for checking a banking account condition;
  • Western Union, American Express, and MasterCard created virtual assistants for purchase payments, money transfers etc.

Currently, users are minimizing voice communications and personal meetings. It is easier for them to get answers to their questions using online chats. Besides, the young generation hates waiting, they need answers immediately. Thus, companies are forced to explore new business models in order to be competitive on the market and keep their customers.

Chatbot implementation allows companies to save a significant amount of money on staff salaries. Well, McKinsey analysts have calculated that 29% of workplaces in bank support services and 36% in sales departments can be automated. It will allow to reduce annually $23 and $15 billion.

The  volume of the chatbot market is valued at $32 billion and keeps rapidly growing.

Russian financial bots: functional and convenient

Russia’s Telegram messenger allowed to control finances previous year. Using Talkbank virtual bank, customers can check their balance, transfer money, book a table etc. This year, messenger has launched the payment bot called Bot Payments, allowing to transfer money worldwide.

According to R-Style Softlab, 18% of Russian banks use chatbots for financial operations and 21% will launch them in the near future. So, VTB24 has its own bot on Facebook Messenger.

Salas says that bots will be used soon as investment consultants. The online trading sector is actively applying such a tool called robo-advisor. The AI algorithm estimates risks and develops profitable investment strategies, doing portfolio manager’s work. Such companies as Finam, Zerich, and IT invest develop high-quality robo-advisers.

Forecast for the future

According to experts, 26% of investors will use smart bots for planning trading strategies in 2023. And ten years later, some kind of a bank will be a social network or vice versa. Anyway, innovation financial services will make users’ life much easier.

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