Chatbots are the talk of the town among online businesses. They come in different forms ranging from Facebook Messenger to Live Assistants that you see on various websites. So, why is there a sudden surge in their popularity and what benefits do they bring on the table for businesses in general and retail brokers in particular?
Purpose of Chatbots
Chatbots, powered by AI, can transform a company’s support functions and help businesses scale up and improve their customer relations. This helps them spend less on human support teams. No wonder businesses are seeing a huge potential in them. Placed on a website, they can help you reach a larger audience very quickly and efficiently.
Chatbots are no more wishful thinking. As per the Global Web Index statistics, more than 75% users on the Internet are using some kind of messenger platforms. What better way is there to reach this population that through the use of ever-available chatbots?
How They Can Revolutionize Finance Industry
Though financial companies (especially retail broker firms) were slow to adopt these automated support services, they have gradually started realizing their benefits. So far, their application has been limited to giving real-time quotes, generic answers, and some simple information about price movement, margin calls etc. Hardly anybody considered them a game-changing technology. Things are changing surely and steadily.
It has been found that conversational UIs with basic machine learning features offer a much better interactive performance than blogs, emails, and FAQ pages. They are more effective because they offer personalized experience to visitors. They can analyze your users and adapt well to offer a much better response with time. They can help initiate a trade.
Let’s suppose a user sets an alert that goes like this: “notify me when the price of EUR/USD is $1.3123.” If this actually happens, the chatbot can notify the trader to initiate a trade through the call to action: “Would you like to place a trade now?” This can facilitate a transaction, thus increasing the churn rate for brokers.
When integrated with a trading platform, they can evaluate a trader’s exposure to the market and may warn them of potential threats. They can also caution a trader following news or some sudden event that may adversely affect their open positions. For example, it can say – “The ECB may change interest rates leading to volatility; do you want to manage your positions now?”
They can also analyze a user’s deposit history, trading history, open positions, and margin requirements and can offer real-time alerts with the targeted CTA. If this is not enough, they can also enhance traders’ experience by offering voice assistance.
Advanced chatbots have enhanced NLP (Natural Language Processing) capabilities that enable them to understand typos and ambiguous text. These chatbots generally do not require users to install a specific app for accessing market data. All they need to do is add the chatbot to their preferred messenger. The chatbot would then consistently stream out market updates, pending orders and positions. It may even allow traders to check their balances and execute trades.
Chatbots may supplement the reply with UI elements. A good example of these elements is charts for different time periods. For common requests like quotes for most-traded shares and futures, chatbots may provide shortcuts in the form of buttons. Tracking users’ input continually, a chatbot enables brokers to take advantage of the information entered previously.
There are chatbots that would work efficiently for different knowledge bases, workflows, and data sources. Traders may use chatbots to educate users who are yet unfamiliar with the trading ecosystem and assist them in onboarding.
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