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CONVERSATIONAL BANKING POWERED BY AI AND CHATBOTS IS PLAYING A CRUCIAL ROLE IN ADDRESSING FINANCIAL INCLUSION CHALLENGES IN KENYA.

chatbots and virtual assistants now provide 24 / 7 support for routine tasks, maintaining highly personalised customer engagement. AI is also transforming credit scoring and loan approvals. By analysing alternative data sources, banks generate more accurate credit profiles, allowing them to extend loans to previously underserved customers.

In light of this, AIdriven fraud detection and prevention have become essential. Advanced AI algorithms monitor transactions in real-time, continuously learning to ensure secure online banking activities. Additionally, Kenyan banks are leveraging AI for hyperpersonalised marketing. By segmenting customers based on data insights, they can send highly targeted offers that boost conversion rates.

Financial inclusion

Conversational banking powered by AI and chatbots is playing a crucial role in addressing financial inclusion challenges in Kenya. By leveraging popular chat apps like WhatsApp, conversational banking can deliver financial services to underbanked populations without requiring high-end devices.

AI-powered chatbots provide information in local languages and in simple terms, empowering users to better understand basic financial concepts, while also reducing the need for physical branches which decreases operational costs, allowing banks to offer more affordable services to underserved communities. Furthermore, conversational banking chatbots can seamlessly integrate with mobile money platforms like M-Pesa, enabling registered users to link accounts, transfer funds and top up wallets with ease.

Financial institutions can leverage customer conversations during seasonal campaigns like Customer Service Week or end-of-year promotions to unlock new revenue streams and enhance customer engagement. Using AI to analyse customer interactions and histories, institutions can cross-sell and upsell, offer promotional bundles and engage in feedbackdriven product development.

Measuring AI’ s impact

The success of AI-driven conversationbased strategies should be measured using a mix of customer-centric, operational and financial metrics. By tracking this balanced

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