12/27/2023 0 Comments Good names for chatbotsThe CFPB is actively monitoring the market, and expects institutions using chatbots to do so in a manner consistent with their customer and legal obligations. When market participants can deploy new technologies, they should do so in ways that comply with existing law and, ideally, to increase the quality of customer care. There could also be an assessment of fees or other penalties should consumers receive inaccurate information on making payments.įederal consumer financial protection laws place a variety of relevant legal responsibilities on financial institutions, such as obligations to respond to consumer disputes or questions or otherwise competently interact with customers about financial products or services. It could lead the consumer to select the wrong product or service that they need. When chatbots provide inaccurate information regarding a consumer financial product or service, there is potential to cause considerable harm. Overall, their chatbot interactions can diminish their confidence and trust in their financial institutions. Consumers also can struggle to get the response they need, including an inability to access a human customer service representative. ![]() Instead of finding help, consumers can face repetitive loops of unhelpful jargon. When consumers require assistance from their financial institution, the circumstances could be dire and urgent. Diminished customer service and trust.Financial institutions run the risk that when chatbots ingest customer communications and provide responses, the information chatbots provide may not be accurate, the technology may fail to recognize that a consumer is invoking their federal rights, or it may fail to protect their privacy and data. Noncompliance with federal consumer financial protection laws.The spotlight found the use of chatbots raised several risks, including: Financial institutions should avoid using chatbots as their primary customer service delivery channel when it is reasonably clear that the chatbot is unable to meet customer needs. More recently, the banking industry has begun adopting advanced technologies, such as generative chatbots, to support customer service needs.įinancial products and services can be complex, and the information being sought by people shopping for or using those products and services may not be easily retrievable or effectively reduced to an FAQ response. Other institutions have built their own chatbots by training algorithms with real customer conversations and chat logs, like Capital One’s Eno and Bank of America’s Erica. Much of the industry uses simple rule-based chatbots with either decision tree logic or databases of keywords or emojis that trigger preset, limited responses or route customers to Frequently Asked Questions (FAQs). Financial institutions advertise that their chatbots offer a variety of features to consumers like retrieving account balances, looking up recent transactions, and paying bills. Among the top ten commercial banks in the country, all use chatbots of varying complexity to engage with customers. ![]() “A poorly deployed chatbot can lead to customer frustration, reduced trust, and even violations of the law.”Īpproximately 37% of the United States population is estimated to have interacted with a bank’s chatbot in 2022, a figure that is projected to grow. “To reduce costs, many financial institutions are integrating artificial intelligence technologies to steer people toward chatbots,” said CFPB Director Rohit Chopra. Working with customers to resolve a problem or answer a question is an essential function for financial institutions – and is the basis of relationship banking. The CFPB has received numerous complaints from frustrated customers trying to receive timely, straightforward answers from their financial institutions or raise a concern or dispute. Some chatbots use more complex technologies marketed as “artificial intelligence,” to generate responses to customers. ![]() These chatbots sometimes have human names and use popup features to encourage engagement. Chatbots are intended to simulate human-like responses using computer programming and help institutions reduce the costs of customer service agents. – The Consumer Financial Protection Bureau (CFPB) today released a new issue spotlight on the expansive adoption and use of chatbots by financial institutions.
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