Video Banking Gets High Consumer Ratings: Study

Going to the video is winning over customers, whether used online (85% of consumers would use it again) or in-branch (90% would use again), according to a worldwide video banking study.

Hackensack, N.J.-based video technology company Vidyo’s 2018 Global Video Banking Report revealed an overwhelming majority of consumers who have used video banking would use such services again in the future.

The global study, which explored key topics such as customer attitudes toward video banking, customer satisfaction, financial institutions’ adoption rate, ROI of video banking, benefits of implementation, video banking hurdles and pitfalls. The report surveyed 288 financial services professionals and 4,144 consumers in North America and Western Europe, through a collaboration with Efma, an association of 3,300 retail financial services companies in more than 130 countries, and CUNA Strategic Services, which provides credit unions with access to products, services, and technologies.

The results, according to the study, highlighted the high potential ROI across consumer satisfaction and sales metrics for financial services institutions offering video banking services. The survey revealed consumers find tremendous value in interacting with their financial institutions via video. However, despite the increasing adoption rate and significant customer satisfaction results, only 15% of consumers had an opportunity to experience video banking.

Among the other results:

• Forty-two percent of consumers globally who have never had a chance to experience video banking are open to using it, either online or in-branch.
• More than half of U.S. consumers (54%) who have never had a chance to experience video banking are open to using it, either online or in-branch.
• Forty-eight percent of respondents with a fully deployed video banking service said that driving customer/member adoption was a main challenge they had to overcome.
• More than half of respondents who track their Net Promoter Score, which gauges the customer relationship loyalty, said the video banking’s NPS is higher than the average NPS of other channels.
• Three-quarters of respondents deploying video banking services said that the outcomes are as good or better than anticipated.
• Thirty-six percent of respondents who track their sales close rate said it is higher with video banking than with other channels.

In addition, those organizations that have a fully deployed video banking service cite positive customer/member experiences and improved perception as the main benefits of the initiative.

Survey findings highlight that: 65% report an increased perception among members that their organization is an innovator, 56% report increased customer/member satisfaction, 56% report faster customer/member service, 42% report better customer/member intimacy, 25% report increased customer/member loyalty, and 21% report that video banking is a driver in recruiting new customers/members.

The research also showed that although technology often is an unanticipated hurdle for implementation, it is the number one challenge organizations face when deploying a video banking service:

• Only 11% of respondents said that finding a suitable technology is what has prevented them from offering video banking services.
• However, 54% of respondents who have a fully deployed service said that finding the right technology was the main challenge they had to overcome.

For those organizations that said that finding the right technology was a big hurdle, the key challenge reported was the need for online video banking to work in a consumer environment.

“This report validates what we already know — that even in an increasingly digital world there are times when a face-to-face human interaction can make all the difference in resolving issues more expeditiously, closing transactions and delighting the customer,” Elana Anderson, CMO of Vidyo, said.

“This report clearly shows that video banking is here to stay and organizations must begin implementing it now or risk being left behind,” Vincent Bastid, CEO of Efma, said. He added customers are ready for it, financial institutions can do it, and there are significant advantages from both revenue and customer relationship perspectives in deploying video banking services.