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Video banking reaches a tipping point

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More than 80% of banks surveyed recognize that online and mobile banking channels improve customer engagement – and 93% of banks expect customer satisfaction to improve if a high quality video banking service were to be implemented.
A newly-released research report, co-sponsored by Efma, a not-for-profit association of 3 300 retail financial services companies in more than 130 countries and Vidyo, a leader in video collaboration, aims to bring clarity to the role that video banking plays in the digital transformation of banks.
The research results uncovered massive support for video banking among financial organisations worldwide, with nearly 80%of all banks planning to offer video-enabled banking services.
The research from also found:
* Mobile first: Nearly 70% of banks prioritise video banking availability via mobile and desktop over in-branch or ATM availability.
* Complex transactions: More than 60% of banks find private banking, wealth management, mortgage and loan services to be best suited for video banking settings.
* Feature rich: Banks report that click-to-call on mobile and web, call scheduling, call recording and call escalation are the most important capabilities for video banking services.
“The findings show that there is a strong appetite for video-powered banking worldwide, and we firmly believe in the power of the technology to maintain and improve the personal connection between the customer and the bank,” says Vincent Bastid, CEO of Efma.
Approximately one-quarter of respondents currently have or are piloting a video banking service. Additionally, 24% will begin planning for a video banking service within the next 12 months, with an another 30% intending to begin planning sometime in the near future, amounting to approximately 80% of banks offering video banking services in the near future.
Increased customer satisfaction and building perception as an innovative bank are the strongest motivators for deploying a video banking service.
Banks view security, compliance, cost and customer preparedness (access to devices ready for video) as the biggest challenges to deploying a video banking service.
“Barriers to rapid, wide-spread adoption of video banking tools are quickly being eliminated,” says Eran Westman, CEO, Vidyo. “The benefits of video banking are quantifiable and compelling and every day more banks are taking notice. We’ve had customers report 50% to nearly 80% improvements in NPS scores after transitioning from audio to video banking, which is driving interest in the technology.”
Although many current video banking services are offered within the branch, research indicates that the next phase of video banking services is expected to be in direct-to-consumer online and mobile banking channels. Ensuring a quality banking experience on uncontrolled, consumer-owned endpoints presents a unique set of requirements for technology providers including the need to deliver high performance video communication that works on variable Internet connections and on a variety of devices and operating systems.
Ultimately, banks want a solution that just works. More than 75% of banks defined success in video banking as a video session that is held without technical issue eight times out of 10 – regardless of endpoint or network.