InfoBytes Blog
CFPB highlights problems with chatbots in banking
On June 6, the CFPB released an Issue Spotlight exploring the adoption and use of chatbots by financial institutions. According to the report, financial institutions implement chatbots to reduce the costs of customer service, which is sometimes poorly deployed and can lead to customer frustration, reduced trust, and even violations of the law.
The report found that the use of chatbots raised several risks including: (i) noncompliance with federal consumer financial protection laws; (ii) diminished customer service and trust; and (iii) harm to customers. The Bureau said it has received several complaints from customers who claimed they cannot get the answers they need from such chatbots. The agency reported that about 37 percent of the U.S. population has interacted with chatbots, which is a figure projected to grow, and cautioned that chatbots should not be the primary source of customer service delivery when it is reasonably clear that a chatbot is unable to meet customer needs.
The Bureau said it will continue to monitor the market and encourages people who are having trouble getting the answers they need due to lack of human interaction to submit their complaints to the agency. It also encourages financial institutions to ensure new technology is increasing the quality of customer care.