Grading Today’s Chatbots: Persistent Shortcomings Limit a Mobile Necessity

Although 18 of the top 20 U.S. banks have launched chatbots in digital banking, the tools aren’t yet equipped to be the customer service workhorse that consumers will embrace as an alternative to call centers and branches. Despite the promise that chatbots can address a range of simple to complex queries, they generally remain early in the crawl-walk-run evolution—with many chatbot conversations yielding mediocre answers that risk frustrating customers. 

A Javelin Strategy & Research analysis of chatbots at six major U.S. financial institutions shows that chatbot interactions face persistent shortcomings across all stages of engagement. In many cases, the bots are unavailable in places where they would be handy, it’s unclear what they can accomplish effectively, they struggle to handle complex queries, and when their answers fall short, they often do a poor job of handing off customers to a live agent. Less than one in four consumers thinks that using chatbots is as effective as speaking to a representative on the phone. That’s a troubling perception at this stage of chatbot development because disappointed customers might hesitate to trust them a second time. 

Key questions discussed in this report:

• What are the three types of chatbots, and what are their respective benefits and shortcomings?
• Why are chatbots not ready to replace conventional customer service options?
• Where are chatbots falling short during customer interactions?
• How do chatbots at major banks stack up against each other—and against strategic needs?
• How can the different types of chatbots be made to provide a satisfactory engagement with customers?

Companies Mentioned:

Ally, Bank of America, BMO, Capital One, Chase, Citi, Citizens, Fifth Third, Huntington, KeyBank, Navy Federal, Regions, Santander, TD Bank, Truist, U.S. Bank, USAA, Wells Fargo