Did you know that the first transcontinental video call took place in 1964? AT&T debuted its ‘Mod I’ Picturephone at New York’s World’s Fair: images were sent in black and white at 30 frames a second, and callers had to sit very still to ensure they were in view for the people on the other end of the call. AT&T went on to open commercial videophone booths in four major cities in the US. While initially very popular, the high usage costs resulted in them being suspended a few years later. Of course, the recent astronomic rise of digital technology and smartphones means that video chat and conferencing apps — such as FaceTime, Zoom, and Teams — are now cheap, reliable, and generally accepted as a standard way for people and businesses to stay connected and operate efficiently. Indeed, video chatting is increasingly being used by financial institutions (FIs) to offer video banking services to their customers. The Rise of Video Banking?By enabling customers to interact with an FI’s representative remotely, video banking combines the convenience of digital banking with the human experience of in-person, in-branch conversations and transactions. Video banking can be particularly useful for an institution’s more complex interactions that require visual human engagement, including loan applications, account opening, investment advice, and financial planning. FIs are also increasingly using it for enhanced ID scan and signature services, document exchange, virtual notary capabilities, and fraud prevention. Here are three key ways in which community financial institutions (CFIs) are adopting video banking services.
- In-branch video consultation. Customers use a private booth or office at their local branch to connect with a specialist or expert banker based at another branch or head office. This can be useful when customers need to speak with someone who has specialized knowledge and there isn’t someone available in the branch they’re at.
- Remote video banking. Using a device of their choice, customers can access a CFI’s video banking app to interact with their banker remotely — on-demand for basic queries, or by appointment for more bespoke requirements. This is perhaps a natural evolution of mobile banking.
- Video teller machines (VTMs). VTMs offer many of the benefits of an ATM, while also enabling customers to request immediate face-to-face assistance for various basic transactions.
The Benefits of Video BankingVideo banking and consultation can offer several benefits to both CFIs and their customers:
- Accessibility and convenience. This is particularly the case for customers who may have difficulties accessing physical branches. Customers can choose times and locations that suit their needs and schedules. Video banking also allows CFIs to leverage new technologies for both employees and customers with vision or hearing impairments.
- Personalization. Video calls, used in conjunction with customer data, allow for improved insight into a customer’s financial situation — and can help determine the best solutions and products for them.
- Income generation. Using video calls to facilitate interactions can help generate revenues in a cost-effective, convenient manner. Customers who value the personal touch can conduct transactions in a similar way to how they would in-branch, while the bank can build an engaging dialog and seize opportunities to upsell and cross-sell.
- Customer loyalty. Although remote, video banking’s face-to-face interactions can help build stronger and more meaningful customer relationships, which can lead to increased customer satisfaction and retention.
- Efficiencies and cost savings. Video banking can allow a CFI to use its staff in the most efficient manner and optimize staff allocation. For example, utilizing centralized specialist personnel rather than having multiple representatives in each branch should result in cost savings and more streamlined operations.
- Increased reach and customer acquisition. Offering video chat can enable a CFI to reach a wider range of customers across geographical regions, even in those areas where it does not have a physical presence.
Making the Most of Video BankingFor the efficient and effective implementation of video banking, an institution needs to ensure it has the right infrastructure and technology in place, its staff are properly trained, and that it builds customer trust in the offering by providing a seamless experience and excellent customer support. It is also important to treat video banking as part of a holistic offering and not as a separate entity or channel, so that it complements existing offerings and capitalizes on existing customer insights. Video banking presents CFIs with another way to meet and exceed customer needs and expectations by providing a convenient, branch-like, secure experience from anywhere. It can help CFIs expand their reach, optimize their operating efficiencies, and increase customer loyalty through meaningful, personalized, remote face-to-face interactions.
