What is the Impact of Chatbots in Nigeria's Banking Sector

Chatbots are computer programs designed to simulate a conversation - both voice and text - with human users, especially over the internet. They are described as a never-sleeping, cost-efficient and powerful way to provide basic support to consumers. Chatbots can respond faster to customers and even personalize consumer experiences as they are programmed to understand the patterns of interactions.

Financial services are one area where chatbots are seen as having growing prospects. They can process most basic banking tasks such as inquiries about balances, account details, and loans. Nigerian banks have started to use chatbots despite the inherent challenges of low adoption of digital technology, poor internet access, limited number of smartphones users, and even security concerns, writes Emmanuel Mogaji for The Conversation. 

The Conversation's research sought to understand the present state of chatbots in the industry and examine how Nigerian banks are using this tool and offer some recommendations. The result showed that banks should seek verification of their chatbot on social media platforms to reassure consumers of their safety. They must also include terms and conditions on the chatbots. Banks must innovate to improve the responsiveness of their chatbot because consumers want an instant reply.

 

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