Chatbots to Expand Greatly In Financial Services

The global chatbot market ifor the financial services industry was valued at $586 million in 2019 and is expected to reach $6.83 billion by 2030, growing at a compounded annual rate of 24.9 percent, according to the latest research from Next Move Strategic Consulting.

The analyst firm defines a chatbot as a software application used to simulate online conversation using text or text-to-speech to provide customer support, important information, query resolution, or a brief essence of the organization.

The need for chatbots is rising in the financial sector as face-to-face interactions are not feasible, the firm concluded.

Cost advantages are fueling the growth, as is overall industry growth, increasing penetration of artificial intelligence in client servicing, emergence of Internet of Things and application programming interface technologies; and rising demand for intelligent customer engagement technologies. Benefits offered by chatbots in the sector include quick query resolution, 24-hour customer support, and improved customer relationships, the firm added.

Easy integration of chatbots with social media is expected to create opportunities in the chatbot market in the financial sector. However, lack of skilled workforce, limited product differentiation, high cost of installations, and a need for continuous software updates are likely to impede the market, it said.

Key players identified in the report include [24]7.ai, Acuvate, Aivo, Artificial Solutions, Creative Virtual, eGain, IBM, Inbenta Technologies, Next IT, Anboto, Codebaby, and Nuance Communications.