The present-day future. 3 myths about video banking

Nowadays, remote customer support provided by the bank staff during routine self-service operations is a good practice. Fast-paced telecommunication development, requiring video communication, provides financial institutions the opportunity to reach their clients via the new modern and credible channel. However, concerns about the practical application of such solutions are more than real for banks.

To prove its tenability of the new interaction channel tending to be the keystone in the bank’s customer-centric strategy, fine words are not enough. First, it is important to dispel the most common myths around video banking.

Myth #1. No space for video banking

Beyond all doubt, every FI builds its own development strategy and sets the clients’ priorities of interaction channel. There is plenty of banks around the world who are cautious for some reason about the investments in ATM networks and have only a few dozens of self-service devices for hundreds of thousands of clients. Other organizations enhance their self-service channels and mobile banking to leave behind the traditional brick-and-mortar bank branches.

As the technical base, the existing call center and a self-service device fleet can be used since most modern terminals are equipped with video cameras and other necessary equipment. Using a reliable internet connection, an operator at the Distance Service Center (DSC) can contact any single client who uses one of the thousands of ATMs or other remote terminals. The operator can provide online consultations regarding self-service device work or some bank products.

Person-to-person communication during the video connection increases the client’s confidence and loyalty to the bank’s brand. As a result, FIs kill two birds with one stone: make their product and service more convenient and steadily develop their own image.

Myth 2: Video banking is overcomplicated

In fact, any bank may start introducing video banking services without revolutionary infrastructure changes. Present-day solutions empower interactions with the customer using various ways: multifunctional self-service terminals and mobile devices.

Of course, to provide the majority of advanced banking services, a standard ATM functionality is not sufficient.  The hardware-software complexes from specialized manufacturers with built-in printers, scanners, multimedia, and other equipment allow using various identification mechanisms (such as reading biometric data, bank cards, personal identification data, etc.) to sign contracts and other documents, make payments and perform standard banking operations like withdrawal, deposition, and transfer of funds. In this case, the bank gets at its disposal designed and prepared for implementation device for work device, the introduction of which into the bank’s infrastructure does not take much time.

Using these tailored self-service terminals for video banking, the financial institutions, on the one hand, provide additional services for customers and increase the value of interaction. On the other hand, these complexes simplify all kinds of banking operations for the end-users, especially for senior people and clients with special needs.

Myth #3: Video banking is disproportionately expensive

The cost of implementing and ownership of tailored video banking terminals may be a huge stop factor. However, it is true only at first glance. According to the expert’s estimates in the field of banking technology, Dmitry Miroshnikov, the virtual office (DSC) cost is an average of 16 times cheaper than the traditional banking branch.

Moreover, it generates the saving in office expenses and staff salaries and provides centralized control over the quality of supporting and consulting services: it is much easier to monitor the efficiency of a compact team of DSC operators than to monitor consultants in each bank branch.

Thus, the desire to “humanize” the interaction between the client and ATM by using video communication solves cost optimization for the banking business. This is the main driver for implementing video banking systems on the market: according to the results of the European Association of Financial Management (EFMA) study, conducted in 2016, about 80% of the surveyed banks plan to introduce video banking services for their customers shortly.

BS/2 presents VTM.iQ – multivendor solution for ATMs and multifunctional terminals for video banking and advanced operations. Based on UT.VTM.iQ and MT.VTM.iQ terminals, the solution can provide access to the most banking services: receiving and withdrawing cash, transferring funds from one account to another, opening an account, ordering and paying for other banking products, signing contracts, printing checks, and receiving payment cards. Besides, the solution can be deployed on an existing ATM fleet that has the functionality to provide audio or video communication, regardless of the types and models of devices and their manufacturers.