Video banking: the digital transformation of the banking industry

Video banking has become increasingly popular as a novel approach to financial services in recent times.

It is anticipated to become even more prevalent as technology continues to progress. With the COVID-19 pandemic accelerating the shift toward digital banking, video banking has become an essential tool for providing personalized services to their customers.

As customers become more comfortable with video banking, financial institutions will have to keep pace with their expectations by offering even more advanced features, such as augmented reality and virtual assistants. With the rise of blockchain and cryptocurrencies, video banking will also play a critical role in managing digital assets.

Jump to:

• What is video banking?
• How does video banking work?
• Video banking: the digital transformation tendency
• Video Banking vs Traditional Banking: pros and cons
• Cyber security in video banking
• Best software solutions for video banking
• Kaltura solutions for implementing video banking
• Final thoughts

What is video banking?

Video banking is an innovative approach to financial services that allow customers to conduct banking transactions and receive personalized assistance via live video calls. Integrating video conferencing technology into traditional banking services provides seamless and convenient banking experiences for customers while also enabling financial institutions to streamline operations and reduce costs.

“The global video banking service market was valued at $71.4 billion in 2021, and is projected to reach $247.9 billion by 2031, growing at a CAGR of 13.6% from 2022 to 2031.” – Pradeep R, Kanhaiya K, Vineet K, Allied Market Research: Link

How does video banking work?

Video banking typically works through a secure online platform or mobile app provided by the financial institution. Customers can either schedule a video appointment with a bank representative or a financial advisor, or they can promptly initiate a video call whenever they require assistance with a banking transaction. As the traditional office hours are now being changed to a schedule set individually with employees, customers do not have to worry about arriving late for work.

During the video call, customers can discuss their financial needs, ask questions, and even share documents securely, all from the comfort of their homes or offices.

The digital transformation tendency of video banking

The growing adoption of video banking is a reflection of the ongoing digital transformation in the banking industry. Several factors influence this trend, including customers’ increased expectations for digital services, a preference for enhanced customer experiences, operational efficiency, cost-effectiveness, and potential competitive advantages.

With video banking, bank representatives can interact with customers face-to-face, providing a more engaging and personalized experience. This can lead to increased customer satisfaction, retention, and loyalty.

Video banking also enables banks to reduce costs by providing remote video support instead of having customers come into physical branches. This allows banks to optimize their resources and allocate more time and resources to other areas of the business.

Finally, video banking can provide a competitive advantage for banks that implement it successfully. By offering video banking, banks can differentiate themselves from their competitors and provide a unique value proposition to their customers. Brands that utilize video-enabled customer service sessions can distinguish themselves from their competitors by offering superior service and building trust with their customers.

Video banking vs traditional banking: pros and cons

Although video banking provides various benefits over conventional banking, it presents a unique set of obstacles.

Pros of video banking:

• Convenience: The convenience factor enables customers to access banking services anytime, from any location, without the need to visit a physical branch.
• Personalization: Video calls provide a more personalized experience, with real-time visual communication and tailored advice.
• Cost-efficiency: Banks can save on operational costs by reducing the number of physical branches and staff required.
• Enhanced customer service: Video banking allows banks to serve more customers in a shorter amount of time, leading to improved customer satisfaction.

Cons of video banking:

• Technical challenges: Customers and banks may face technical difficulties or connectivity issues during video calls, affecting the quality of service.
• Security concerns: While video banking platforms typically use advanced security measures, the risk of cyberattacks and data breaches remains a concern for both customers and financial institutions.

Cybersecurity in video banking

For financial institutions to establish and retain customer confidence, it is vital to address cybersecurity concerns. One approach is to guarantee that their video banking platforms are exceedingly secure. Financial institutions can integrate various robust security features, including:

• Data encryption: A security protocol that enciphers data to deter unauthorized access.
• Two-factor authentication (2FA): A security procedure that requires users to present two different verification factors, such as passwords and security tokens to authenticate their identities.
• Firewalls: A security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules.
• Intrusion detection systems: A security technology that monitors network traffic to detect and respond to potential security threats.

By incorporating these features, institutions can feel confident that their video banking platforms are well-protected against cyber threats and that their customers’ data is safe and secure at all times.

Best software solutions for video banking

As the demand for video banking services grows, various software solutions have emerged to help financial institutions implement and manage these services effectively. Here are five of the best software solutions for video banking:

Kaltura

An industry-leading platform, Kaltura features a highly customizable interface that is 100% your brand, with advanced security measures in addition to analytics and reporting capabilities.

The cloud-based platform provides customers with a secure, seamless, and personalized video banking experience. With features such as whiteboards, document sharing, and screen sharing, Kaltura‘s platform offers a comprehensive virtual banking solution. The service is customizable to meet specific bank requirements and adheres to regulatory standards to ensure data protection and privacy. Kaltura’s video banking service can help banks improve customer engagement, streamline operations, and reduce costs associated with in-person interactions. Bank of America Merrill Lynch uses Kaltura to power their Merrill Video Pro, a virtual video studio for its thousands of financial advisors. (watch product video here)

TrueConf

TrueConf is a versatile video conferencing solution that caters to various industries, including banking. They focus on facilitating remote video consultations between customers and banking professionals. The platform offers secure and reliable video conferencing solutions for a range of banking services, including loan applications, account opening, and customer support. TruConf’s platform is user-friendly, easy to integrate with other banking systems, and customizable to meet specific requirements. Data protection and privacy are also ensured by the service. TruConf’s video banking can improve customer satisfaction and reduce operational costs for banks.

Glia

Glia offers a video banking solution that allows remote, personalized, and expert customer service. The platform offers real-time messaging, voice and video chats, and document sharing. With the integration of AI technology, companies can identify high-value website visitors and even create chatbots that can interact with customers based on predefined scenarios. Glia’s AI also scans customer chat sessions and provides suggested answers or prompts to customer service agents. Unfortunately, Glia does not currently offer a free or trial version of its application.

Vidyo

This video conferencing platform specializes in delivering secure and superior-quality video communications to multiple sectors, including financial services. Their video banking service enables customers to have secure, real-time video conversations with bank representatives from anywhere, on any device. Customers can perform several tasks, from opening accounts to applying for loans and also contacting customer support. Vidyo’s platform offers high-quality video and audio, with robust security features and compliance with regulatory standards. By offering a personalized, face-to-face experience, video banking can help banks build stronger relationships with customers and improve overall satisfaction.

24sessions/Message Bird

This cloud-based video banking platform prioritizes delivering a straightforward and user-friendly experience for both customers and employees. It allows customers to engage in remote video consultations with banking professionals. With advanced features like scheduling, screen sharing, and document signing, 24sessions/Message Bird’s platform provides a comprehensive solution for virtual banking. Furthermore, their service adheres to GDPR as well as other regulatory requirements. Video consultations with 24sessions/Message Bird can enhance customer experience and engagement while also improving operational efficiency for banks.

Kaltura solutions for implementing video banking

With Kaltura’s video banking solutions, financial institutions can easily and efficiently connect with their customers through video, providing them with more personalized and engaging banking experiences. Furthermore, the platform’s sophisticated analytics and reporting functionalities enable financial institutions to obtain valuable insights into their customer base, aiding them in comprehending their needs and preferences more effectively.

Kaltura provides a comprehensive solution that enables financial institutions to stay abreast of the most recent technology and security advancements, allowing them to provide their customers with the finest banking experience achievable.

Final thoughts

In conclusion, video banking is a game-changing innovation that offers numerous benefits to customers and financial institutions alike. With video banking, customers can access their financial accounts in a convenient, personalized, and secure manner, while financial institutions can streamline their operations and cut costs. As the banking industry continues to undergo digital transformation, video banking is becoming more popular. Virtual assistants, augmented reality, and other advanced features are expected to be added to video banking as technology continues to progress. To explore the benefits of video banking further, financial institutions should consider adopting one of the best software solutions available, such as Kaltura. This enables them to differentiate themselves from their competitors, offer customers an exclusive buying experience, and stay ahead of the times.