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Is conversational AI the future of banking?


The recent strides which technology has made in NLP-based conversational AI with ChatGPT, have left many bankers wondering - are conversational interfaces, and chatbots the future of banking?


While it is still an emerging trend in the banking industry, it is likely that conversational banking will continue to grow in popularity in the future due to several reasons and become a general-purpose technology for banking in the near future.


Firstly, conversational banking provides customers with a more convenient and personalised banking experience. Customers can access banking services and support through messaging platforms or voice assistants, which can be more convenient and faster than traditional banking methods. Additionally, chatbots and virtual assistants can use artificial intelligence (AI) to provide personalized recommendations and support to customers based on their individual needs and preferences.


Secondly, conversational banking can help banks reduce costs and improve efficiency. Chatbots and virtual assistants can handle routine tasks and support queries, freeing up human agents to focus on more complex and high-value tasks. Additionally, AI-powered chatbots and virtual assistants can learn from customer interactions, which can help banks optimize their services and improve customer satisfaction.


However, while conversational banking has many benefits, it is important for banks to ensure that their chatbots and virtual assistants are secure, reliable, and compliant with regulatory requirements. Banks also need to ensure that their chatbots and virtual assistants are user-friendly and able to provide accurate and helpful information to customers. So the implementation of a solution is important as the solution itself.


So let's first see what needs to be taken care of by banks when they design for conversation banking, what are some of the current examples in the Indian banking space and who are some of the current service providers.


How to design a great UX for conversational banking?



Designing a great user experience (UX) for conversational banking requires a thoughtful approach to ensure that customers can easily and efficiently complete tasks, get support, and receive relevant information through chatbots or virtual assistants. Here are some key factors to consider when designing a UX for conversational banking:

  1. Focus on user needs: Conversational banking should be designed with the user's needs in mind. This means understanding what tasks users are looking to complete, what questions they have, and what information they need. Use this knowledge to create chatbots and virtual assistants that are intuitive and user-friendly.

  2. Use natural language: Chatbots and virtual assistants should be able to understand and respond to natural language. This means using natural language processing (NLP) technology to accurately interpret user input and provide relevant responses. It is also important to provide users with a clear and simple interface for interacting with the chatbot or virtual assistant.

  3. Provide clear navigation: Navigation is key in conversational banking, as it can be easy for users to get lost or confused in a chatbot or virtual assistant. Provide clear navigation options and ensure that users can easily return to previous steps or tasks.

  4. Ensure security and privacy: Security and privacy are critical considerations in conversational banking. Make sure that chatbots and virtual assistants are designed with strong security protocols and data privacy protections in place.

  5. Incorporate personalization: Personalization is a key component of a great UX for conversational banking. Use AI and machine learning technologies to personalise interactions with users based on their past behaviour, preferences, and needs.

  6. Test, learn and iterate: Test the UX for conversational banking with real users and iterate based on their feedback. This will help you identify and address any usability issues and ensure that the chatbot or virtual assistant provides a seamless and enjoyable experience.


5 examples of conversational banking in India


  1. HDFC Bank's EVA (Electronic Virtual Assistant): HDFC Bank's EVA is an AI-powered chatbot that can assist customers with a wide range of banking services, including account balance inquiries, bill payments, fund transfers, and credit card payments. EVA is available 24/7 and can interact with customers through messaging platforms like WhatsApp and Facebook Messenger.

  2. ICICI Bank's iPal: ICICI Bank's iPal is a virtual assistant that uses natural language processing to help customers with various banking needs. iPal can assist with balance inquiries, account statements, credit card payments, and more. iPal is available on the bank's website and mobile app.

  3. Kotak Mahindra Bank's Keya: Kotak Mahindra Bank's Keya is a conversational AI platform that can assist customers with various banking services, including account opening, credit card application, and loan application. Keya is available on the bank's website and mobile app.

  4. Yes Bank’s YES ROBOT: Yes Bank's YES ROBOT is a chatbot that can assist customers with account inquiries, fund transfers, and bill payments. YES ROBOT is available on the bank's website and mobile app.

  5. Axis Bank's AXAA: Axis Bank's AXAA is an AI-powered chatbot that can assist customers with a wide range of banking services, including account inquiries, credit card payments, and fund transfers. AXAA is available on the bank's website and mobile app.


5 conversational banking service providers in India


Here are five conversational banking service providers in India:

  1. KAI India: KAI India is a conversational AI platform that enables financial institutions to create intelligent virtual assistants and chatbots. The platform uses natural language processing and machine learning to understand customer queries and provide relevant responses. KAI India is used by several banks and financial institutions in India.

  2. Yellow Messenger: Yellow Messenger is a conversational AI platform that offers chatbots and virtual assistants for a wide range of industries, including banking and finance. The platform uses natural language processing and machine learning to enable intelligent conversations between customers and chatbots or virtual assistants.

  3. Haptik: Haptik is a conversational AI platform that provides chatbots and virtual assistants for various industries, including banking and finance. The platform uses natural language processing and machine learning to enable intelligent conversations between customers and chatbots or virtual assistants.

  4. Uniphore: Uniphore is a conversational AI platform that enables businesses to create chatbots and virtual assistants for customer support and engagement. The platform uses natural language processing and machine learning to understand customer queries and provide relevant responses. Uniphore is used by several banks and financial institutions in India.

  5. Gupshup: Gupshup is a conversational messaging platform that enables businesses to create chatbots and virtual assistants for various industries, including banking and finance. The platform uses natural language processing and machine learning to enable intelligent conversations between customers and chatbots or virtual assistants. Gupshup is used by several banks and financial institutions in India.


In conclusion, conversational banking is likely to play an increasingly important role in the future of banking. However, it is important for banks to approach this trend carefully and ensure that their chatbots and virtual assistants are able to provide customers with a secure, reliable, and personalised banking experience.



Designing a great UX for conversational banking requires a user-centric approach, with clear navigation, natural language processing, security and privacy, personalisation, and ongoing testing and iteration. If you are looking for guidance in helping you create chatbots and virtual assistants that provide customers with a seamless and enjoyable banking experience, reach out to us at info@executepartners.com today!


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