More than 80 percentof banks surveyed recognize that online and mobile banking channels improve customer engagement and 93 percent 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, Inc., 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 organizations worldwide, with nearly 80 percent of all banks planning to offer video-enabled banking services.
The research from Vidyo and Efma also found:
- Mobile First: Nearly 70% of banks prioritize 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.
“Forty-two percent of financial services companies participating in the Nemertes Research Contact Center and Customer Engagement 2016 Benchmark are using or evaluating video conferencing to interact with customers as part of their omni-channel customer engagement strategy,” says Irwin Lazar, Vice President and Service Director. “Adopters are leveraging video as part of their digital transformation strategy to engage with high value customers, build brand differentiation, and to deliver enhanced services via the web and at branch locations.”
“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,”said Vincent Bastid, CEO, Efma. “Efma partners, like Vidyo, are key to the widespread adoption of video banking services by providing a scalable technology that addresses the needs of financial intuitions and end users alike. Several Efma member banks have adopted Vidyo and are reporting positive results.”
Approximately ¼ of respondents currently have or are piloting a video banking service. Additionally, 24 percent will begin planning for a video banking service within the next 12 months, with an another 30 percent intending to begin planning sometime in the near future, amounting to approximately 80 percent 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. At Vidyo, we are focused on making the adoption of video banking frictionless for the IT organization and flawless for the end-user without sacrificing quality, security or performance,” said 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 percent 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 percent of banks defined success in video banking as a video session that is held without technical issue 8 times out of 10 – regardless of endpoint or network.
The report also highlights video banking deployments from Barclays Retail Bank and IndusInd, one of the fastest growing next-generation private sector banks in India.
For more information on the potential for video in banking, download the Video and Efma Video Banking report and infographic.
Efma’s Board of Directors includes representatives from the world’s largest banks including: BNP Paribas, Deutsche Bank, HSBC, ING Belgium, Santander, ABN AMRO Bank, Allianz SE, Banco Bradesco, Bank of Tokyo-Mitsubishi UFJ, Crédit Agricole S.A., Emirates NBD, ICICI Bank, Intesa Sanpaolo, Société Générale and others.