Backbase launches conversational banking for banks

Backbase has launched Conversational Banking, now generally available to banks.

The software lets customers complete routine banking requests through chat or voice, with an AI agent carrying each task through to resolution within rules set by the bank. Examples include blocking a lost card, disputing a payment, requesting a credit-card limit increase within policy, or starting a loan application.

When a request falls outside preset rules or requires judgment, it is passed to a bank employee without ending the conversation. Staff receive the request in Backbase's Banking OS employee workspace, along with the actions already taken by the AI agent.

Each completed action creates a "decision token", Backbase said, recording what was approved, by whom and under which policy. Banks can define what information and tools agents may access, what actions they may perform, and when human approval is required.

The launch reflects a broader push by banking software providers to move beyond chatbots that mainly answer questions or direct customers to help articles. Backbase argues that banks can use conversational interfaces to handle service requests directly, rather than sending customers to a call centre or branch for straightforward tasks.

The Amsterdam-based group works with more than 120 banks across 50 countries, including Navy Federal Credit Union, TD Bank and KeyBank. Conversational Banking can be deployed as part of its Banking OS or added to an existing digital banking stack.

Cost Pressure

Banks have been testing AI tools in customer service and internal operations as they look for ways to reduce manual work while tightening control over compliance and approvals. Backbase cited an estimate from McKinsey & Company that agentic AI could cut banks' operating costs by 15% to 20% by automating routine requests and reducing repeated information gathering.

That cost argument sits alongside competitive pressure to improve self-service. Many banks have invested heavily in mobile apps and online banking, but service journeys still often break down when a customer needs to complete a non-standard request or provide more context.

Backbase said Conversational Banking is already running in production at more than 10 banks. According to the company, one of South Africa's four largest banks has supported 22 million customer interactions through the technology so far, while improving self-service containment from 20% to 70%.

Jouk Pleiter, Founder and Chief Executive Officer at Backbase, said the shift is from digital access to task completion through AI-guided conversations.

"Digital banking put the bank in the customer's pocket. The next step is to let customers say what they need done and have the bank's agents act on it intelligently. That future has now arrived early: one where agents do the work, and banks stay in control," said Jouk Pleiter, Founder and Chief Executive Officer at Backbase.

"It completely changes both the customer experience and the economics of serving them," Pleiter said.

Early Users

Backbase included comments from two banking-technology customers on the operational impact of its conversational AI tools. Their remarks focused on automation, call containment, and giving employees a single place to search for information.

"Backbase's conversational AI has delivered real business value. We've seen tangible savings through increased automation and call containment while giving customers a faster and more convenient service experience," said Gene Fichtenholz, Chief Technology Officer at Meriwest.

"Backbase brought all our sources of truth together and gave our employees a single, searchable home for information. They simply ask a question and get the answers they need to support and serve our customers," said Michael Purifoy, Senior Executive Vice President and Chief Treasury and Digital Banking Officer at VeraBank.

The new product forms part of Backbase's wider Agentic Banking portfolio. The company also offers Relationship Intelligence, intended to help banks anticipate customer needs, and Customer Operations, aimed at coordinating fulfilment across teams and systems.

Backbase said banks can begin with selected use cases and connect the necessary systems without replacing their online or mobile banking platforms. According to the company, any consequential request requires explicit customer confirmation, and records of context, checks, decisions and outcomes are kept for audit oversight.

The system is designed to let customers, employees and AI agents work with shared context and bank-defined authority.