Use of Chatbots and its Role in Enhancing Customer Experience: A Study of the Banking Industry

Abstract

This study examines how chatbots could improve the client experience in the banking sector. Due to their quick and effective customer service, chatbots are becoming more and more popular, but it is still unknown whether they can improve the customer experience. In order to gather data from a simple random sample of Palestinian banking clients in the Gaza Strip, a survey was conducted utilizing the explanatory technique. To test hypotheses, data collected from 337 individuals was evaluated using simple regression analysis. According to the results, chatbots may enhance the customer experience by offering 24/7 availability, prompt support, and customized replies. However, issues with data privacy, lack of human interaction, and chatbot accuracy were also noted. The study comes to the conclusion that chatbots may be an effective tool for increasing customer experience in the banking sector, but their design, deployment, and interaction with current customer service channels must be carefully considered. This study significantly adds to the body of knowledge on chatbots and their potential influence on customer experience. The study offers useful insights into the particular difficulties and potential of employing chatbots in a highly regulated and customer-focused industry by concentrating exclusively on the banking sector. The results show that chatbot implementation in banking needs to be approached thoughtfully and strategically to maximize their potential for improving customer experience while limiting any possible downsides.

Citation

Salem, M. (2024), "Use of Chatbots and its Role in Enhancing Customer Experience: A Study of the Banking Industry", Hamdan, A., Alareeni, B. and Khamis, R. (Ed.) Digital Technology and Changing Roles in Managerial and Financial Accounting: Theoretical Knowledge and Practical Application (Studies in Managerial and Financial Accounting, Vol. 36), Emerald Publishing Limited, Leeds, pp. 107-114. https://doi.org/10.1108/S1479-351220240000036010