Video in Banking 2016

93% of banking professionals expect a high quality video banking service to have a positive or strongly positive impact on customer satisfaction. – Streaming Media.

73% of bankers indicate that the primary reason they would use video banking services would be to increase customer satisfaction.
Why is customer satisfaction of such great importance? It turns out that an engaged customer brings in 400 Euros more in revenue than a disengaged one. Video is an effective complementary product, or in some cases even a substitute, to face-to-face in-branch communication, which is invaluable for creating cross-selling and up-selling opportunities.
Other motivators include:

Let’s look at an example of business account opening. An advisor has to spend a great deal of time explaining what needs to be filled out in particular mandate fields because often times the customer is confused by the jargon or is simply discombobulated by the pages and pages of forms. Having clear instruction videos sent out before the in-person meeting would reduce the “explanation time” and leave more room to gauge future business requirements and other needs that may not necessarily be directly related to business, like a pension plan, leasing or insurance.

“Customers continue to demand human touch and empathy and there is significant benefit to provide not only a voice, but a face of Barclays. The majority of our customers who experienced video banking now demand that their future servicing activity takes place via a video interaction. And If I take a like-for-like servicing request via traditional telephony vs. video banking, the NPS is almost double. It has incredible value for us as an organization.” – Simon Separghan Director of Global Contact Centres & Omni Channels of Barclays Retail Bank.

But even though bankers agree that video is becoming essential for engaging with customers, which in turn has a positive effect on the ROI, only 10% have some sort of video solution in place and 80% out of those who don’t plan to launch a video banking service in the long term.
Below are the main factors deferring banking video adoption.

Since banks do want to implement video in their everyday practice, they naturally start focusing on particularly important and profitable banking units to maximise the ROI.
Secure prerecorded videos sent by phone or email have a huge potential in such use cases for greeting and thanking customers, handing over to or introducing new personal advisors, setting up and confirming appointments, promoting new financial and insurance products, inviting to and following up after events. At Videobot we have found that sending such types of messages not only has a positive effect on customer engagement, where the view through rate is close to 100% but also makes staff more productive and results reports more quantitative.

One of the hidden challenges that banks are facing in deploying video solutions is adoption within the organisation. The more employees get comfortable being on the screen and sending video messages to their clients, making video communication more natural and authentic, the better the results the organisation is going to see, both in terms of NPS and ROI.

Resources:

EFMA Video Banking
Relationship Banking Definition | Investopedia
Gallup Research, The Financial and Emotional Benefits of Fully Engaged Bank Customers, 2013