Allied Market Research

2024

Chatbot Based Banking Market

Chatbot Based Banking Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, by Deployment Model, by Application and, by Enterprises Size : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : IT in BFSI

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Author's: | Onkar Sumant
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Chatbot Based Banking Market Outlook – 2030

A chatbot is an artificial intelligence-powered application that communicates with human to solve a problem or respond to a question. With the help of robotics and artificial intelligence (AI), a chatbot can assist customers without the need for a customer service agent on the other end. Chatbots can be simple or extremely intelligent, depending on how they are programmed. A rules-based chatbot can only respond to very specific commands, whereas a machine-learning chatbot learns from each interaction.

Chatbots in banking are used by many firms through certain social media apps, such as Facebook Messenger, to provide customer service by conventional banking. These chatbots in banking firms help in taking the commands through voice or text commands and perform functions such as scheduling a payment & exploring recent transactions within the app. Customers can also use text messaging to manage their money, including viewing payment history and paying a credit card bill.

Furthermore, banks will need to place a greater emphasis on digital security to protect sensitive data. Therefore, there will be a surge in demand for chatbot based banking services in the near future as this would include investments in voice biometrics to verify that the customer is talking to a bot and not some stranger.

The global chatbot based banking market is segmented on the basis of component, deployment model, application, enterprise size and region. Based on component, the chatbot based banking market is bifurcated into solution and service. In terms of deployment model, the market is categorized into on-premise and cloud. On the basis of application, the market is divided into website, contact centers, social media, and mobile application. On the basis of enterprise size, the market is segregated into large enterprises and small & medium enterprises (SMEs). Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global chatbot based banking industry include Kevit, Conversica Inc., Yellow Messenger, CONTUS, KeyReply, Aivo, International Business Machine (IBM) Corporation, Amazon Web Services (AWS) Inc., Google Inc., and Nuance Communications Inc. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global chatbot based banking market.

Top Impacting Factors

Rise in need for 24*7 customer support at a lower operational cost and increase in adoption of cloud-based conversational bots by banking firms drive the growth of the chatbot based banking market. In addition, advancement of artificial intelligence and rise in number of SMEs propel the growth of the market. However, lack of precision in user voice authentication is expected to hamper the growth of the market. Contrarily, self-learning chatbots are being developed to provide a more human-like conversational experience, which is expected to provide lucrative opportunities to the chatbot based banking market in the coming years.

Rise in Need For 24*7 Customer Support at a Lower Operational Cost

Chatbots are becoming increasingly important in providing customers with round-the-clock support, allowing various industries to streamline and improve the customer experience they provide at every stage of the process. Various financial institutions have shifted their focus to quickly resolve customer inquiries and enhance customer experience. The ability to respond quickly to customer inquiries has become a critical component of an organization’s success. As a result, businesses view the chatbot as a powerful conversational interface for effectively engaging customers and providing a dynamic & rich user experience environment.

Moreover, many businesses have implemented chatbots that use AI and predictive analytic capabilities to allow users to communicate via voice and text. The chatbot helps users make payments, save money, transfer funds, and check balances, thus improving the quality of services provided to customers. Therefore, the need of banking firms to enhance customer interaction is expected to foster the growth for the global chatbot based banking market during the forecast period.

Rise in Adoption of Cloud-Based Conventional Bots By Banking Firms

Based on deployment mode, the chatbot based banking market is divided into cloud and on-premise. During the forecast period, the cloud segment is expected to lead the market in this segment. Investments from key players in the development of bot technology based on cognitive and AI systems drive the segment’s growth. During the forecast period, the on-premises segment is expected to grow due to SMEs' preference for low-cost services, which they achieve by implementing on-premises solutions in their business units.

Moreover, banking organizations can use on-premises services to automate their business processes while also assisting in the recommendation of their services to users and others. Therefore, rise in adoption of cloud-based conventional bots by banking firms is expected to boost the growth of the market during the forecast period.

Key Benefits of the Report

  • This study presents analytical depiction of the global chatbot based banking market forecast along with the current trends and future estimations to determine the imminent investment pockets.      
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the chatbot based banking market share.
  • The current market is quantitatively analyzed to highlight the global chatbot based banking market growth scenario.                 
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
  • The report provides a detailed chatbot based banking market analysis depending on the present and future competitive intensity of the market.

COVID-19 Impact Analysis

  • During the COVID-19 outbreak, various organizations are increasingly using chatbots to respond to customer inquiries and other related information. Attributed to limited availability of customer service employees, various organizations have adopted remote working as a result of state/country-imposed lockdowns. As a result, companies are heavily reliant on chatbots to reduce the burden of customer queries.
  • COVID-19 has increased the relevance and urgency of digital transformation. Banks have had years to prepare for opportunities that are rapidly approaching, and previously slow-growing pain points are being pushed to the surface. Banks began to innovate, reinvent, and redefine themselves to meet these challenges.

Questions Answered in the Chatbot Based Banking Market Research Report        

  • Which are the leading players active in the global chatbot based banking market?
  • What are the detailed impacts of COVID-19 on the chatbot based banking market size?
  • How current chatbot based banking market trends will influence the industry in the next few years?
  • What are the driving factors, restraints, and opportunities in the market?
  • What future projections would help in taking further strategic steps?

Chatbot Based Banking Market Report Highlights

Aspects Details
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By Component
  • Solution
  • Service
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By Deployment Model
  • On-Premise
  • Cloud
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By Application
  • Website
  • Contact Centers
  • Social Media
  • Mobile Application
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By Enterprises Size
  • Large Enterprise
  • Small & Medium Enterprises
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By Region
  • North America  (U.S., Canada)
  • Europe  (France, Germany, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Nuance Communications, Automation Anywhere, Kasisto, IBM Watson, IPsoft, Oracle, Alert Solutions, Amazon Lex, Artificial Solutions, AI Foundry

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Chatbot Based Banking Market

Global Opportunity Analysis and Industry Forecast, 2023-2032