Banks Turn to Video to Improve Customer Engagement

A new survey found that nearly 70 percent of banks prioritize video banking availability through mobile and desktop over in-branch or ATM availability.

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More than 80 percent of banks polled recognize that online and mobile banking channels improve customer engagement, and 93 percent of banks said they would expect increased customer satisfaction if a high-quality video banking service were put in operation.

Those were the findings of a survey of 136 banking professionals from 52 countries, which was co-sponsored by Efma and video collaboration specialist Vidyo.

The study found that nearly 70 percent of banks prioritize video banking availability through mobile and desktop over in-branch or ATM availability, and more than 60 percent of banks find private banking, wealth management, mortgage and loan services to be best suited for video banking settings.

"Video-enabled banking combines access and convenience to an array of banking services. Video banking allows customers to bank on demand from wherever they are, whenever they please," Eran Westman, CEO of Vidyo, told eWEEK. "Additionally, video banking expands the resources available to consumers. For example, if you are interested in refinancing your home but there is no specialist at your local branch, you can connect with a specialist via video and have your questions answered or schedule a video meeting at your convenience."

Westman noted that protecting customer data and identity is a primary security concern for many businesses.

"Financial institutions have increased compliance and regulatory requirements, such as call monitoring and recording, integration into their core software, and encryption levels," he said.

Banks reported that click-to-call on mobile and Web, call scheduling, call recording and call escalation are the most important capabilities for video banking services.

Approximately one-fourth of respondents said they have or are piloting a video banking service, and a similar percentage will begin planning for a video banking service in the next 12 months, with three in 10 saying they would begin planning in the near future. This amounts to about 80 percent of banks offering video banking services soon.

The biggest drivers for deploying a video banking service are increased customer satisfaction and building the perception that a bank is innovative.

"Banks strive to balance cost, convenience and customer engagement, and video-enabled banking is able to strike this balance. We firmly believe that mobile banking technology is poised to become ubiquitous and soon connecting with your banker via video will be as easy and commonplace as checking your account balance on your smartphone," Westman said. "Soon, customers will expect to always have the option to chat face-to-face with their banker either on a mobile app, from an ATM or at a kiosk or meeting room in the branch itself."