Innovation

Consumer Financial Protection Bureau finds issues with bank chatbots

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June 7, 2023

The Consumer Financial Protection Bureau has discovered issues with bank chatbots after numerous complaints from customers that included inaccurate information and unhelpful advice. Banks use simpler rule-based chatbots with decision tree logic or databases of keywords, while others are experimenting with generative chatbots, according to a press release.

The CFPB has identified a series of potential problems with chatbots including:

• Failure to comply with financial protection laws since chatbots may not provide accurate information or fail to protect consumer's privacy and data.
• Can create barriers to receiving a response from a human, which in turn can reduce trust in financial institutions.
• Inaccurate information rom chatbots can lead to consumers choosing the wrong product or service, which can lead to harmful outcomes.

"To reduce costs, many financial institutions are integrating artificial intelligence technologies to steer people toward chatbots," Rohit Chopra, director, CFPB, said in the release. "A poorly deployed chatbot can lead to customer frustration, reduced trust, and even violations of the law."

The bureau recommends banks comply with existing laws when it comes to chatbots and focus on increasing the quality of the customer experience.