The Rise of GenAI-Powered Virtual Assistants in Banking: A Shift Towards Search-Bar-Like User Experiences
The trend of AI-powered virtual assistants in financial services is rapidly evolving, as customers become more accustomed to interacting with these tools on banking apps. Banks and card issuers are adapting to this shift by creating user experiences that are more like generative AI-powered search engines, according to a recent report by American Banker.
One notable example of this trend is Bank of America’s virtual assistant, Erica, which has been transformed into a search-bar-like feature at the top of the bank’s app. Jorge Camargo, a managing director at Bank of America, notes that customers are increasingly using Erica as a search engine rather than simply asking it questions.
The rise of virtual assistants in the financial services sector can be attributed to several factors. A recent Corporate Insight survey found that 24% of consumers who used apps from credit card issuers had interacted with a virtual assistant in the past six months, up from just 4% in 2019. Bank of America reports that the number of Erica users has steadily increased over the past three years, with 18.5 million active users by Q4 2023.
Marketing efforts and enhanced in-app capabilities, such as providing answers within the app, have contributed to the rise in virtual assistant adoption. Additionally, a growing number of financial services executives are planning to use generative AI for customer service and personalization.
Consumer interest in generative AI has been fueled by buzz around technologies like ChatGPT and Google Gemini, which are shaping customers’ expectations around their interactions with virtual assistants. While Bank of America’s Erica has not yet incorporated genAI, its interface has been redesigned to resemble online search tools, making it more user-friendly and intuitive.
However, the adoption of genAI-powered virtual assistants may still face challenges, as consumers may have negative memories of early menu-based chatbots. To succeed, these tools will need to provide human-like responses and meet the high expectations set by consumers’ other AI interactions in their daily lives.
Overall, the use of generative AI in banking chatbots is on the rise, with potential for growth in the US, Canada, and the UK. As virtual assistants continue to evolve and improve, they have the potential to revolutionize the way customers interact with their financial institutions.