Threats to personal data privacy are top of mind for many Americans, and the risks of identity theft and other security breaches are particularly significant in a financial context.¹ In Commonwealth’s research on financial chatbot usage, 42% of users reported that they were concerned about the security of information shared with chatbots. 

• Include branding on chatbot or apps. Users are more likely to trust tools from companies they already have a relationship with and have interacted with positively in the past.

• Include upfront messaging about data security. Clearly reporting what measures exist to secure and protect data can communicate that organizations are aware of and proactive about data security before chatbots or other software requests personal information.
• Give users control over what data is stored. Because the success of emerging financial technologies like chatbots often depends on sharing some personal information, addressing these concerns is an important trust-building strategy.

Top user concerns when considering asking a chatbot for guidance were that the chatbot would push products they didn’t need, that the information would be inaccurate, or that the guidance given by chatbots would not address their needs.²

• Include clear messaging explaining that customers are interacting with a chatbot and not a human. Our research indicates that banking customers are often unsure if they are chatting with a human agent or a chatbot. This uncertainty can set chatbot interactions up for failure if a user believes they are interacting with a live agent.
• When making product recommendations, consider connecting to real customer reviews or action steps taken by other customers. Helping clients connect recommendations to other real clients in similar financial situations may help build trust with clients who would otherwise feel like the chatbot is simply pushing a product.³

While use of and comfort with chatbots has increased significantly since the pandemic, users retain a strong preference for interacting with a real person—especially for more complicated issues. Our research indicates that when given a choice between a human and a chatbot, there is a strong preference for human assistance. 

• Make it easy to connect to a human agent. Making it easy to move from a chatbot conversation to a live agent can improve openness to financial chatbots by creating a pathway to solutions rather than a potential dead end. This potential for human connection may play an important role in applications of various customer-facing technologies. Knowing that a human is available as an alternative if they run into issues with new technology makes them more willing to give these novel pathways a shot.

Many concerns about chatbots and AI tools are rooted in a lack of familiarity with these technologies. While user trust and comfort takes time to develop, financial institutions and organizations may be able to accelerate this process by exposing users to new technologies in low-risk ways. 

• Give users examples of potential chatbot interactions. In one-on-one interviews with Commonwealth, users had reservations about AI and chatbots when speaking in abstract terms, but could identify specific use cases relevant to them when presented with examples. Offering users access to demos or examples to familiarize themselves with new technologies may help build a foundation of trust before situations that are more urgent or require sharing sensitive information.

Customers living on LMI represent a large and diverse group that cannot be reduced to a single shared set of needs or preferences. Delivering value through the design of tech products ultimately depends on understanding the alignment between technological capabilities and the needs of specific audiences. At the same time, there are common economic barriers and situations that should be kept in mind which may be relevant for the design of emerging technologies.

• Customers living on LMI are more likely to have limited local branch access. Decreased access to physical banking branches in lower-income communities creates an opportunity for chatbots and other financial technologies to fulfill a broader range of banking needs.
• Customers living on LMI have limited time. Users often feel that chatbots are a waste of time that lead them to dead ends or around in circles. Ensuring that chatbots can either provide action-oriented guidance quickly or recognize the need to transfer to a human agent is key to building stronger associations between chatbots and quick solutions.

Although chatbots are perhaps most commonly thought of as sources of information that can provide guidance or recommendations, our research suggests that the ability to complete basic transactions through a chatbot interface has significant appeal.⁴ 

• Support online banking services like sending payments through a chatbot. Digital payments are an essential financial service, particularly for households living on low to moderate incomes. More action-oriented chatbots that can facilitate easy payments provide an opportunity to design technology to match the needs of this group. 
• Give users confirmations of completed actions through chatbots. Action-oriented chatbots that report back to users when a payment dispute has been resolved, a transfer has been made, or a credit card has been turned off or on can increase the usefulness of these tools for users.

Automated features can make it easier for customers to reach their financial goals with lower effort and time commitments. Simultaneously, users with lower incomes may have more fears about automating their financial lives when margins are small and errors can create significant setbacks. One way to increase engagement with automated financial tools is to allow users to have control over how much automation is used or to put guardrails in place to ensure they don’t overdraft any accounts. 

• Allow users to turn automated finance features on and off. Users may have volatile financial situations or anticipate future changes in their income and expenses. Allowing users to easily turn features on and off can help them engage with automated finance, while still knowing that they can update their preferences quickly should the need arise. Even if the technology involved is capable of adapting to these changes, allowing customers to turn it off will increase trust and demonstrate that they are still in control. 

• Include “safety net” features that pause automated movement of money if their balance is below a certain threshold. When credit union users were surveyed about potential features in an automated finance app, 89% of respondents expressed interest in a feature that would pause savings deposits automatically based on account balances. Many financially vulnerable Americans have experienced getting charged an unexpected overdraft fee and are wary of any tool that may unintentionally lead to overdrafted accounts.