A South African FinTech startup that specializes in the development of financial services chatbots, FinChatBot, has received an investment of $500,000. The investment was made by South African venture capital firm Kalon Venture Partners and Mauritius-based Compass Venture Capital.

FinChatBot has said that it will use the investment it has received to grow and expand its client pipeline.

FinChatBot in action.

"By implementing our chatbots, financial services providers are able to increase their conversion rates, reduce operational costs and gather more data about customers which can be used for product innovation and customer retention," said Antoine Paillusseau, Co-Founder of FinChatBot.

Chatbots gaining traction in South Africa

With talk of the Fourth Industrial Revolution, you've probably come across news of Artificial Intelligence (AI) on an almost daily basis. One such application of AI. that you will hear of regularly, that is gaining traction is chatbots.

More specifically, the use of AI in the financial services sector. AI in the finance industry has been through chatbots on various social media platforms by both FinTech startups and established banks and other established finance companies. Another example of such a chatbot in South Africa is one launched by Old Mutual (OM). The chatbot by OM leverages Amazon Lex, a service for building conversational interfaces into any application using voice and text.

AI-powered conversations

FinChatBot develops chatbots that help financial services companies acquire and retain customers through AI-powered conversations. According to the South African FinTech startup, acquisition of new customers via automated chat conversations have a much higher success rate than any other channel.

"It’s a significant vote of confidence in our vision for FinChatBot and I am extremely excited to learn from and grow with our partners," concluded Paillusseau.

Cover image credit: Clive Butkow (CEO of Kalon Venture Partners), Antoine Paillusseau (CEO and Co-Founder of FinChatBot) and Fabrice Boullé (Partner at Compass Capital) celebrating the deal at AfricArena 2018.