Question of the Week

Question:  Our credit union is considering using chatbots to reduce customer service costs. Is there anything we should be aware of?    

Answer:  The Consumer Financial Protection Bureau just released a new issue spotlight that said poorly deployed chatbots can lead to customer frustration, reduced trust, and even violations of law.

The CFPB has reported receiving numerous complaints from frustrated customers trying to receive timely, straightforward answers or raise a concern or dispute.

Chatbot features range from basic to advanced. Financial institutions should avoid using chatbots as their primary customer service delivery channel when it is reasonably clear the chatbot is unable to meet customer needs.

The use of chatbots raises several risks, including:

• Noncompliance with federal consumer financial protection laws
• Diminished customer service and trust
• Harm to consumers

The CFPB is actively monitoring the market and expects financial institutions using chatbots to do so in a manner consistent with their customer and legal obligations. The CFPB encourages people who are experiencing problems, while attempting to get answers to their questions due to a lack of human interaction, to submit a consumer complaint to the CFPB.

For more information, see the CFPB’s Issue Spotlight Analyzes “Artificial Intelligence” Chatbots in Banking and Chatbots in Consumer Finance Report.