Chatbots help banks and fintechs adapt to the potential of PSD2

Chatbots help banks and fintechs adapt to the potential of PSD2

Of all the sectors, financial institutions are destined to face the most fundamental changes in the near future. New regulations can and should be treated as opportunities for development. Nest Bank proactively faced this challenge and launched a dedicated API incorporating PSD2. InteliWISE’s Chatbots are allowing them to get the most out of their recent technology implementations.

These new regulations are the basis for creating a single market for payments in the European Union. PSD2 grew out of the extraordinary increase in the number of electronic transactions carried out via mobile devices. It will allow for a reduction in transaction costs as well as increased security of the transactions themselves. It will also introduce a number of new regulations, e.g. banks will be required to provide data on clients (history of transfers and operations) to new institutions, referred to as TTP (Third Party Provider). TTP involve companies from outside the banking sector referred to as fintechs and serves as an opportunity to provide better end customer user experiences. The new payment services include the Payment Initiation Service (PIS), i.e. the possibility of making payments on behalf of the client, and the Account Information Service (AIS), aggregating information from all client’s bank accounts, allowing efficient control over one’s finances. In this way, new entities can compete for clients’ money by providing novel services.

PSD2 already allows you to generate billions in valuations

Banks in Poland must adapt to changes that will radically change the current way of banking. A good example is the company Revolut, an alternative to traditional banking. This modern banking system is managed from the level of one mobile application, connected to a MasterCard payment card. You can create an account without leaving your home, store funds in various currencies, and make international payments with one card, all at no extra charge. In its third year of existence, Revolut has a substantial market penetration and a valuation in the billions.

The research firm Gartner predicts that by 2030 up to 80% of traditional banks we know today might disappear from the market. That is why taking advantage of technological progress is so important. In Poland, one of the pioneers of using PSD2 is Nest Bank, to which InteliWISE provides access to our Virtual Banking Assistant (Chatbot).

-The delay in implementing AI and the fear of new technologies in banks is a thing of the past. New regulations, or rather deregulations, and bold fintech projects have a very radical impact on changing the behavior of traditional banks. The API at Nest Bank is a great example of a flexible and modern approach to a new generation of services,” – comments Marcin Strzałkowski, the founder of InteliWISE.

Chatbot integrated with the Nest Bank API

Nest Bank’s innovative solutions enable it’s customers to access services from other fintechs and institutions. Nest Bank released an API (data exchange) platform that InteliWISE Chatbots dovetail with to allow for better use of these new solutions. One possible way this might work is that a fintech or a company providing services (including mobile applications offering reservations, purchases or transport services) will be able to use the customer’s account data in Nest Bank. After this streamlined financial interaction, our Chatbot can provide an intuitive interface through which the user accesses new services. “Give me an example,” you ask?  A start-up offering electric scooter rentals will be able to directly connect to the customer’s account at Nest Bank to make a payment without additional commissions. The customer can order or check the location of the nearest electric scooter via the InteliWISE Chatbot in a mobile app or on Messenger

Maximize your margins, without a Call Center

The integration of Chatbots with the banking APIs also has a very practical application for banks and fintechs in the context of specific service costs. For example, our Smart Assistant, serving as a client service representative for a new mobile applications roll-out, can solve 30-70% of clients’ problems without the need of a consultant. This means that these companies do not have to overinvest in expensive Call Centers and helplines to support new applications.

All over the world, fintechs do not have any qualms using these cutting-edge solutions. Case in point, the previously mentioned Revolut banking company uses Chatbots to manage and solve thousands of repeated, already-solved users’ requests, instantly and without unnecessary formalities – why reinvent the wheel every time you need to use it? The Chatbot only connects with a consultant when more complicated matters arise.