The Consumer Financial Protection Bureau (CFPB) is closely observing the growing trend of banks employing AI-driven chatbots in response to a rise in customer complaints. Many consumers report difficulty obtaining clear answers from their financial institutions or addressing concerns.
According to the CFPB, effective communication and problem resolution are fundamental responsibilities of financial institutions, forming the cornerstone of relationship banking. “In an effort to reduce costs, numerous banks are implementing artificial intelligence technologies to direct customers toward chatbots,” notes CFPB Director Rohit Chopra. “However, poorly implemented chatbots can lead to customer dissatisfaction, diminish trust, and potentially result in legal infractions.”
Among the ten largest commercial banks in the United States, all utilize chatbots to some degree, employing varying levels of sophistication. Many predominantly rely on rudimentary rule-based chatbots that utilize decision tree logic or keyword databases to provide predetermined responses or direct inquiries to Frequently Asked Questions (FAQs). Conversely, some banks, like Capital One and Bank of America, have developed more advanced chatbots, training algorithms on actual customer interactions.
The CFPB highlights that customers often encounter difficulties when seeking information, frequently finding themselves in frustrating loops of unhelpful jargon. “Given the complexity of financial products and services, the information sought by consumers may not be available through standard FAQ responses,” the agency emphasizes. They assert that institutions should refrain from using chatbots as their primary customer service method when it’s clear that the technology cannot adequately address customer needs.
In its continued oversight of the market, the CFPB encourages financial institutions to align their chatbot use with customer and legal requirements. Additionally, it invites consumers facing challenges in obtaining answers due to insufficient human support to file formal complaints.