What is Video Banking? The Key Benefits and Use Cases

In today’s increasingly digital world, the way we access and interact with banking services is rapidly evolving.

One technology that has gained significant traction in recent years is video banking.

In fact, four out of five banks either already offer video banking or are planning to in the near future.

Video banking leverages the power of video chat to bring personalized support directly to customers’ screens, revolutionizing the way we bank.

But how exactly can banks and financial organizations benefit from implementing this technology?

And what are the best ways to offer video banking services to your customers?

Fortunately, we’ve created an essential guide to help answer these very questions. We’ll cover:

• What is video banking and how does it work?
• The benefits of video banking for banks and customers
• How to provide video banking: Use cases
• Getting started with video chat for banking

What is video banking?

Video banking is a service that allows customers to have remote consultations with bank representatives via video chat.

It combines the convenience of digital banking with the personalized experience of in-branch customer conversations.

Through video banking, advisors can help customers with a variety of banking actions, such as:

• Opening and maintaining accounts
• Loan applications
• Investment guidance
• Financial planning

Video banking works by using video conferencing technology to connect customers with bank representatives in real time.

The video calls often take place via a bank’s website, app, or interactive ATM.

Customers can initiate a call either by scheduling an appointment or by requesting a live video chat session through the bank’s designated channel.

During a video banking interaction, customers can discuss any banking needs (e.g. financial aid), ask questions, and receive tailored advice or assistance.

How video banking benefits the customer

Video banking can benefit consumers and financial organizations in a number of ways.

First up, let’s take a look at the key advantages for customers.

Increased accessibility

Video banking plays a crucial role in increasing accessibility to banking services.

It achieves this by extending services to customers who may face challenges accessing physical branches. For example, individuals with limited mobility, those residing in remote areas, or people with busy schedules.

Thanks to video call software, consumers can connect with banking professionals and access a wide range of services - whatever their location or circumstances.

This breaks down the barriers of time, distance, and physical mobility, ensuing that all consumers have equal access to the assistance and service they need.

Maximum convenience

Video banking allows customers to access banking services from the comfort of their homes, or from any location with an Internet connection.

It means that consumers don’t have to travel to a physical branch, wait in queues, or adjust their schedules to suit limited banking hours.

This is significant because 70% of consumers are willing to pay more for a convenient customer experience.

With video banking calls, customers can choose a time and location that best suits their lives, needs, and preferences.

As a result, individuals can manage their banking and financial needs without disrupting their work or personal commitments.

This convenience and flexibility facilitates better time management and empowers customers to access banking services on their own terms.

Personalized customer experience

Personalization is a key aspect of video banking that sets it apart from other digital banking channels.

Through video calls, advisors can gain a detailed insight into the customer’s specific financial situation and goals.

Armed with this information, bank representatives can offer recommendations, advice, or solutions that are tailored to the individual.

By accessing customer data and transaction history, representatives can also provide contextualized support, ensuring accurate guidance.

This personalized approach helps build stronger customer relationships over time, leading to increased customer loyalty and satisfaction.

In summary, video banking delivers a better digital customer experience by catering to individuals’ unique needs and personalizing the banking journey.

How video banking benefits financial organizations

Now that we know how video banking can benefit consumers, let’s explore the ways it benefits banks and financial organizations.

Reduced costs

Video banking offers cost-saving opportunities through various means.

Firstly, by reducing the need for extensive brick-and-mortar locations, video banking can help businesses save on branch infrastructure costs.

Secondly, video banking allows banks to optimize their staff allocation. Instead of having multiple representatives stationed at each branch, banks can centralize their customer service teams - leading to cost savings through more efficient resource allocation.

And finally, video banking reduces the need for customers to visit branches, resulting in lower operational costs for physical locations.

The combined impact of these cost savings contribute to the overall performance and profitability of financial organizations.

Increased scope of reach

Modern contact channels like video chat enable banks to extend their scope of reach to a wider range of consumers.

By offering remote access to banking services, video banking eliminates geographical barriers. This allows banks to reach customers in different regions - even those without a local branch presence.

This expanded scope of reach helps banks tap into new markets and attract a more diverse customer base.

By extending their reach through video banking, banks can enhance customer acquisition, improve market penetration, and drive overall business growth.

Competitive advantage

Video banking can help banks gain a significant competitive edge in the finance industry.

Video chat offers a forward-thinking customer experience that can set your organization apart from traditional brick-and-mortar banks.

This demonstrates innovation and a commitment to embracing technology in order to meet evolving customer needs.

By leveraging video banking, banks can deliver efficient service and a seamless experience, resolving issues promptly and boosting customer delight.

This competitive advantage not only helps retain existing customers but can also attract new customers from competitors who may not offer remote banking services.

As a result, video banking empowers banks to differentiate themselves, stay ahead of the competition, and thrive in an increasingly digital banking landscape.

Optimal efficiency

By leveraging video chat customer service, banks can boost efficiency by streamlining operations and improving overall performance.

With video chat apps, customers can connect with bank representatives instantly, eliminating the need for lengthy wait times or multiple rounds of communication.

This leads to quicker query resolution, faster problem-solving, and time-savings for both customers and agents.

What’s more, video banking can integrate digital tools such as document sharing and electronic signatures, thus simplifying complex transactions and reducing manual paperwork.

Overall, video banking maximizes operational efficiency and provides a streamlined banking experience for both customers and banks alike.

How to provide video chat banking: Use cases

It’s undeniable that video chat can be a valuable addition to your bank’s customer service strategy.

In this section, we’ll take a look at video banking in action and detail the different ways it can be provided.

1. Online video banking

Online video banking allows users to access video customer support via the organization’s website or app.

With online video banking, customers can initiate live or scheduled video calls directly from their smartphones, laptops, and other devices.

Whether it’s opening an account, applying for a mortgage loan, or seeking financial advice, customers can engage in face-to-face interactions with expert advisors from any location with an internet connection.

Agents providing this service can even combine video chat with collaborative tools like cobrowsing to offer hands-on guidance and help customers navigate the website.

Take Ironworkers USA Credit Union as a real-life example of this use case.

Upon visiting their website, a widget appears as an automatic pop-up allowing customers to start a live chat, video chat, or web call interaction with a single click.

It means that members of Ironworkers Credit Union can easily carry out banking actions and obtain tailored guidance from anywhere in the country.

For UK readers, consider Barclays Bank as another example of how video banking can be offered to consumers.

Barclays' video banking service allows users to schedule a video call via an online booking system on their website.

This allows customers to select a specific date/time for their appointment that best suits their needs and lifestyle.

By offering online video banking, banks can ensure that their customers have an alternative way to get in touch whenever a branch visit isn’t a viable or convenient option.

2. Video banking kiosks

Video chat for kiosks can be used to transform self-service bank ATMs into an interactive digital communication channel.

These interactive terminals are equipped with video conferencing capabilities, enabling customers to connect with bank representatives whenever they require help or assistance.

Whether it’s a complex transaction, troubleshooting an issue, or seeking guidance, customers can instantly initiate a video call with a remote representative directly from the ATM.

This form of video banking combines the efficiency and convenience of self-service with the human touch that consumers crave.

Talkative partner AOne ATM is a great example of video banking kiosks in action.

AOne worked with Talkative to create a revolutionary ATM experience that reconciles the disconnect between customers and the financial institutions they interact with.

Launched and branded as MiniBranch®, these kiosks can be used to instantly access real-time video calls with expert advisors - simply by scanning a QR code on their smartphone.

It means that AOne customers can enjoy a personalized video banking experience from any ATM location - all via their own device.

3. In-branch video banking

Although we’ve focussed more on the benefits of remote video banking thus far, in-branch video banking can also be a useful and lucrative asset.

In-branch video banking combines the convenience of digital customer service with the reassurance of a physical bank location.

It involves designated areas within bank branches where customers can access video chat facilities (e.g. via tablets) to communicate with remote advisors.

Customers can discuss their financial needs, seek expert advice, or carry out transactions without having to wait for an in-branch representative to become available.

One example of an organization that offers in-branch video banking is the Bank of America.

Implemented in a number of select branches, Bank of America provides a range of virtual banking services including video chat consultations.

This approach allows customers to enjoy the advantages of video banking while still having the experience of visiting a branch in person if desired.

It can also help banks optimize their resources by centralizing customer support and providing specialized expertise remotely across multiple branch locations.

The takeaway: Getting started with video chat for banking

There’s no doubt that modern channels like video chat are paving the way for the future of digital banking.

Thanks to video calls, banks and financial organizations can combine digital convenience with the perks of the in-branch customer experience.

But in order to successfully provide video banking services, you need the right video chat provider.

That’s where Talkative comes in.

Ourprovides a complete suite of channels and capabilities that’ll empower your representatives to connect instantly, and effortlessly, with all your digital customers.

As a primary feature of our platform, Talkative’s video chat solution comes with a myriad of features to help you engage and support more customers - from multi-party video calls to advanced analytics, deep integrations into systems like Salesforce, on-demand and scheduled video chat, and much more.

Want to learn more?

Book a demo with us today and discover how you can power premium video chat banking with Talkative.