- Report this article
Amundsen Davis, LLC
Amundsen Davis, LLC
Published Jul 12, 2023
+ Follow
Recently, the Consumer FinancialProtection Bureau (CFPB) releaseda reporton the use of chatbots, such as ChatGPT, etc., by financial institutions. The report highlighted that chatbot use, as automated teller machines and offshore customer call centers before them, are increasingly used by financial institutions to streamline processes and lower operating costs. The CFPB report details a number of challenges in the use of chatbots, as well as guidance for successful deployment by financial institutions.
As chatbots proliferation rises, the CFPB is fielding an increasing number of consumer complaints related to chatbots of various sophistication. Among the most frequent complaints are:
Recommended by LinkedIn
In response to the CFPB’s report, financial institutions would be well-advised to ensure chatbots are only used for appropriate, informational tasks. They should be designed to ensure access across the board of technology capabilities of their customers. Chatbots should have offramps to human customer service reps that are more knowledgeable, and these offramps should be easily identified by consumers. Finally, chatbots that collect any personally identifiable information should have its chatlogs secured in accordance with financial institutions personal information protocols.
Any new technology which has the ability to streamline processes and potentially lower costs is one that cannot be ignored. Per the CFPB’s guidance, financial institutions should continue to integrate it in accordance with longstanding financial customer service principles: prioritize consumer access, results, and trust and confidence in their financial institutions, regularly audit chatbot usage to ensure it is not deployed beyond its capabilities, and ensure chatbots and chatbot logs are appropriately secured from outside intrusion. In doing so, financial institutions can ensure that they remain legally compliant and business efficient.
Author: Ryan Prisock
Legal Brew Newsletter
Legal Brew Newsletter
2,284 followers
+ Subscribe
Like
Celebrate
Support
Love
Insightful
Funny
15
To view or add a comment, sign in
More articles by this author
No more previous content
- Interchange Fee Prohibition Act (IFPA) Aug 21, 2024
- Website Accessibility Lawsuits Are on the Rise – Are You Compliant? Aug 16, 2024
- Discussing The Legal and Ethical Implications of Border Technologies and Human Rights with Lawyer, Anthropologist, and Author Petra Molnar Aug 8, 2024
- Planning for the Future: Managing Your Healthcare with Advance Directives Jul 30, 2024
- Pennsylvania Judge Disagrees with Texas Judge And Denies Motion for Preliminary Injunction Challenging the FTC’s Non-Compete Rule Jul 25, 2024
- Character Assassination: Responding to Defamation in the Gaming World Jun 27, 2024
- Estate Planning for Young Adults: Essential Documents as Your Child Heads to College May 22, 2024
- BIPA Reform on the Horizon: Illinois Legislature Passes Significant Legislation Eliminating Per-Scan Damages May 17, 2024
- Forbearance Agreements: What Lenders Need to Know May 16, 2024
- CMS’s Final Minimum Staffing Standard for Nursing Homes to Go into Effect on June 21 May 15, 2024
No more next content
Sign in
Stay updated on your professional world
Sign in
By clicking Continue to join or sign in, you agree to LinkedIn’s User Agreement, Privacy Policy, and Cookie Policy.
New to LinkedIn? Join now
Insights from the community
- Financial Services How can machine learning help identify potential payment disputes?
- Financial Technology How can AI and human agents work together in FinTech customer service?
- Call Center Development How can call centers ensure the quality and security of the data collected and analyzed by AI and chatbots?
- Banking Relationships What are some effective ways to use data analytics for growth in developing countries?
- Payment Systems How can you use graphs to improve payment systems?
- Financial Technology What are the most effective strategies for FinTech companies to gain customer trust and loyalty?
- Financial Technology How can you effectively test Fintech products in a controlled environment?
- Financial Technology How can you create a seamless onboarding process for a neobank?
- Investment Banking What are the most important considerations for integrating AI into existing IB systems?
- Financial Technology What are the key design elements for a seamless Fintech onboarding experience?
Others also viewed
- Digital, Data, and Regulations Converging: Exploring the Key Trends Transforming the BFSI Landscape in Q4 2023 Allied Market Research 9mo
- Saving Steven Bartlett’s passwords, From LLMs to 'SLMs', and a(nother) Masterclass in Personalisation Jamie Smith 5mo
- AI/ML's Impact on Large Payment and International Transfers Mohammad Arif 2mo
- The Role of Artificial Intelligence in Streamlining Payment Processes Finance Magnates 1y
- From Predictive Analytics to Fraud Detection: AI's Role in Reshaping Business Integra 1y
- Customer Futures Stories: What if browsers are the Next Big Thing, digital obsession is killing customer service and Apple opposes encrypted messages Jamie Smith 1y
- AI for financial inclusion WantokJOBS.com 1y
- The Good, the Bad, and the Ugly of AI in Payments Praxis 6mo
- What is a Financial Identity? Marla Sofer 1y
- How to formulate your CX strategy for 2024 Kane Simms 9mo
Explore topics
- Sales
- Marketing
- IT Services
- Business Administration
- HR Management
- Engineering
- Soft Skills
- See All