Banks see video banking as key to customer satisfaction

Nearly all banks (93%) believe the use of high-quality video in banking services will improve customer satisfaction, with 2016 set to be an inflection point.

According to a research report from banking association Efma and video collaboration technology maker Vidyo, it was found that 10% of banks will use video for banking services in 2016, 50% will use it by the end of 2017 and 80% by the end of 2018.

The research was carried out through meetings with 63 banking professionals from 24 countries. Additional data was collected via an online survey, with 136 bankers in 52 countries responding.

“The findings show there is a strong appetite for video-powered banking worldwide. 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 at Efma.

This personal connection is still seen as important for banks, despite the onset of the digital baking age. With the closure of bank branches, technology is being used to retain the personal connection with customers and to help save costs.

This is particularly important in higher value services such as mortgage advice. For example, Lloyds Bank and Halifax customers can now receive face-to-face mortgage  advice via video link. Customers who are unable to or prefer not to travel to a branch can opt to meet with a mortgage consultant on their computer. 

Nationwide Building Society also offers video-based mortgage consultations  after installing video equipment in branches. Nationwide expected the service to reduce waiting times and increase access because it allowed customers to meet a consultant at a time that suits them.

It was first used to enable  mortgage  consultants to meet customers via high-definition video links using Cisco technology, and was later expanded to include financial planning managers and personal banking managers. 

In 2014, Barclays Bank launched a 24-hour video banking service that will enable customers to receive face-to-face service from anywhere

The Efma research also found that 70% prefer video banking on mobiles and desktops than in branch or on ATMs. Around 60% said private banking, wealth management, mortgage and loan services are best suited for video banking.

The banks surveyed said security, compliance, cost and customer preparedness were the biggest challenges to deploying a video banking service. 

“Barriers to rapid, wide-spread adoption of video banking tools are quickly being eliminated,” said Eran Westman, CEO at Vidyo.

“For example, plummeting connectivity costs has made video a genuine business tool. Years ago, providing such a service on Skype would have cost thousands of pounds – now it is on everyone’s desktop and is practically free.”