Video Banking: Lights, Camera, Transaction?
Telepresence holds great promise for retail banking, but most early-movers are missing the boat. Rather than reinventing the teller experience, banks should pursue video banking as an omnichannel mechanism to improve customer engagement.
In the report Video Banking: Lights, Camera, Transaction?, Celent takes a no-nonsense look at the emerging use of telepresence in retail banking and advocates a vision for how it can be used to enhance customer engagement while reducing cost to serve. The report draws upon interviews among financial institutions and solution providers as well as a survey administered among 1,033 US consumers in June 2013.
Real time video (or telepresence) was once a novelty requiring expensive equipment and high bandwidth data connections. Now, a majority of young and middle aged adults use video chat on desktop, tablet, and mobile devices. Consumers’ increasing use of telepresence creates both challenge and opportunity for banks.
“There are several reasons for banks to explore video banking” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “The most compelling reason is customer engagement, not cost savings. Banks have relied almost exclusively on the branch channel for customer engagement and embraced digital channels merely for low-cost transactions. That model no longer works.”
This report begins with an analysis of consumer and technology trends to support why video banking makes sense, and why now is the right time to pursue its use. The report then examines how video banking is being used among early-mover banks and credit unions, followed by contrasting case studies examining the use of telepresence as part of branch transformation initiatives. Finally, the report advocates a vision for omnichannel video banking alongside other digital engagement mechanisms, a vision decidedly different than the prevailing use of video in personal teller machines.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].
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Table of Contents
Why Video Banking Makes Sense
Taking Shape: How Video Is Being Used in Banking
Dueling Banjos; Contrasting Approaches to Branch Transformation
Coastal Federal Credit Union: Personal Teller Machines
University Federal Credit Union: Self-Service Kiosks
A Vision for the Future of Video Banking
Leveraging Celent’s Expertise
Support for Financial Institutions
Support for Vendors
Related Celent Research