Video Bankinginfo.vidyo.com › ... › Vidyo-Video-Banking-Report-2017.pdf · The report...

VideoBanking:Advancing on the road to maturity

Video Banking | Vidyo, Inc. © 2017 2

Background ------------------------------------------------------ 3

2017 profile of respondents --------------------------------- 4

The fundamental importance ofcustomer engagement ---------------------------------------- 5

From intention to implementation -------------------------- 6

Video banking services are meeting expectations -------- 8

Characteristics and performance of existing video banking services ------------------------------------------------10

Why haven’t others taken the leap yet? -------------------- 14

Technology considerations for a successful video banking service ------------------------------------------15

Vendor highlight: how Vidyo’s solutions meet thetechnical requirements for video banking -----------------16

Conclusion -------------------------------------------------------17

Contents


This joint report was co-authored by Efma, a global not-for-profit organization of retail

financial services companies, CUNA Strategic Services, a US organization providing credit

unions with access to high quality products, services and technologies and Vidyo, a leading

video communications technology provider.

Video banking is being increasingly used by financial services organizations, such as banks,

credit unions and building societies, to interact remotely with their customers or members

over a video call in order to perform a transaction or offer consulting services.

The report highlights recent key trends in video banking adoption, bankers’ evolving

perception towards this channel and the results observed by those who have already deployed

a video banking service.

The 2017 data was collected through an online survey of 282 bankers from 63 countries,

which was conducted from December 2016 to January 2017. Similarly, the 2016 data was

collected from 136 bankers across 52 countries, from January through February 2016. More

comprehensive results from the 2016 survey were released in another report issued in 2016,

titled “Video Banking: The next chapter in a bank’s digital transformation”.

Background


2017 profile of respondents

Region they are located in Business they primarily operate in

Number of branches their organizations maintain

Department they work in

North America37%

Western Europe31%

Eastern Europe13%

APAC8%

Africa6%

Middle East3%

Central &South America

2%

CommercialBanking

8%

Private Banking/Wealth Management

5%

Consumer Credit4% Others

4%

Retail Banking79%

1-4945%

50-9910%

100-49916%

500-99912%

1000+13%

None/Online-Only Bank4%

Channels14%

InformationTechnology

23%

Others18%

GeneralManagement

13%

Sales10%

ContactCenter

11%

Marketing11%


It is generally accepted today that the success of a financial institution relies, to a growing extent,

on its core values of building solid and loyal personal relationships with customers, and this

belief is strongly supported by the survey responses: Nearly all respondents said that customer

engagement is either important or extremely important to the success of their business!

The fundamental importance of customer engagement

How important is the quality of customer engagement

for the success of your business? Q:

Extremely Important89%

Important11%

Not very important0.4% Not important at all

0%


The fundamental purpose of video banking is to create

a seamless, high-quality, convenient and easy-to-use

customer engagement experience. Therefore, it is quite

logical to see growing interest in this emerging channel

from financial institutions that are looking to increase their

overall customer satisfaction and retention.

From intention to implementation

Through this research, we made a distinction between two

ways of delivering video banking services:

• In branches: on Kiosks and ATMs or in office branch

visits where remote subject matter experts can join

any discussion

• Remotely, from wherever the customers need to join:

on their mobile devices, or from their homes or offices

Last year’s survey identified that a small number of

financial services organizations had already deployed at

least one of these forms of video banking, with many more

planning to initiate future projects as well. Now, a year

later, we can see that this trend is accelerating. Almost 20%

of the respondents have now deployed at least one form of

video banking, more than 40% are piloting and still more

than 80% are planning to offer a video banking service in

the future.

0%

10%

20%

30%

40%

60%

70%

80%

90%

50%

Fully deployed at least one form

Fully deployed or piloting least one

form

Fully deployed, piloting or intention

to deploy at least one form

No intention to deploy

Do not know

20162017


The fundamental difference between these two ways of delivering video banking is that for an in-branch or ATM or kiosk-

based service, the video calls are processed over the financial services organization’s network, and on endpoints that it fully

controls - which makes it easier to deploy on a technical perspective. A remote online/mobile deployment requires the video

technology to be able to adapt to public networks’ constraints and reliability issues, while running on devices owned by the

customers.

This is probably why, in past years, many financial services organizations deployed only in-branch services or chose to start

with such a service before expanding to the online/mobile world. We are now observing an inflection in that trend: today, the

number of services that are already deployed or in a pilot phase are very close for these two forms of video banking, and the

intention for future deployment is slightly higher for online/mobile services.

It’s also interesting to note

that the profile of those

who have already deployed

a service is not very

different from the profile

of the entire sample of

respondents. However, the

largest organizations tend

to have a slightly higher

intent to deploy a service

in the future, and there is

a much higher percentage

of large organizations that

are already piloting a video

banking service. 0%

10%

20%

30%

40%

60%

70%

80%

90%

100%

50%

None / Online-only

bank

1 - 49 50-99 100-499 500-999 1000+

Do not know

Fully deployed, piloting or intention to deploy at least one form

Fully deployed at least one form

Fully deployed or piloting at least one form

No intention to deploy

What is the current status of video banking deployment within your organization?Q:

19%

0%

10%

20%

30%

40%

60%

70%

80%

90%

50%

In branches From wherever the customers want to

join

10%

22%

19%

18%

20%

9%

11%

21%

28%

19%

9%

11%

Already fully deployed

Not deployed - intention toinitiate it within the next 12 months

Not deployed - no intention toinitiate it

Do not know / Not aware of the plan

Not deployed - intention toinitiate it in more than 12 months

Currently piloting it

Status of video banking deployment per organization size (number of branches)


Video banking services are meeting expectations

We split the respondents into two groups to ask them differentiated questions:

Those who haven’t fully deployed

any form of video banking yet

Those who have already fully

deployed at least one form of video

banking

Group 1 (229 respondents) Group 2 (53 respondents)

We identified the expectations of the first group, and checked whether the second group is reporting

results that meet these expectations.

We found that for those who haven’t

deployed a video banking service yet,

the main reason to do it would be to

increase customer satisfaction, and

90% of the respondents would expect

video banking to have a positive

impact on customer satisfaction.

The two other top reasons were

to be perceived as an innovative

organization and deliver a more agile

customer service model.

Q: What would you expect to be the impact on customer satisfaction of implementing a high quality video banking service?

Sample: Bankers who haven’t deployed a service yet. 229 responses.

Positive59%

Stronglypositive

31%

Neutral9%

Negative1%

StronglyNegative

0%


Q: What are the main reasons for deploying a video banking service?

Sample: Bankers who haven’t fully deployed a service yet. 229 responses.

When looking at the responses given by those who have already deployed a service, we can see that these

three major expectations are in the top results that they observed. Therefore, we can conclude that video

banking is definitely delivering on its promises.

Q: Which of these results do you get out of your video banking service?

Sample: Bankers who have already deployed a video banking service 53 responses.

0% 10% 20% 30% 40% 60% 70% 80%50%

Other

It’s a must have service in today’s banking market

Close branches / reduce workload in branches

Be perceived as an innovative bank

Faster customer service

Improve customer intimacy

Increase customer loyalty

Increase customer satisfaction

Drive more revenue

Attract new customers

0% 10% 20% 30% 40% 60% 70% 80%50%

Increased perception of your organization as an innovator

Reduced workload in branches

Faster customer service

Better customer intimacy

Increased customer loyalty

It helps recruit new customers

Increased revenue

Lower agent churn rate in the contact center

Closed branches

Other

Increased customer satisfaction


Characteristics and performance of existing video banking services

As described earlier, we found that the profile of the organizations offering video banking - number

of branches, primary business and geography - does not significantly differ from the profile of the

entire sample of respondents. Any type of financial services organization can potentially offer a

video banking service.

From the responses given by those who have already deployed a service, we can picture the typical

characteristics of today’s video banking services:

• Most of the time (73%), the service is offered to the entire customer base, rather than just a

customer segment

• 45% of respondents also offer it to non-customers

• Most of the time, only some specific employees use the service; it is rarely available to the

entire staff

• It is used to deliver a variety of services, but the top use cases are savings accounts/

investments and current accounts/cards.

• Scheduled meetings by a bank representative, or direct requests from in-branch kiosks, are

the most widely available ways of initiating video banking sessions

• Call recording and document sharing are the most commonly offered non-core video banking

features

Q: What customer segment do you currently offer your video banking service to?

Q: Can non-customers also contact your organization through video banking?

All your customer base72%

Premium /Mass-affulent

customers22%

Other6%

No55%

Yes45%




Q: Which of your employees can use the service to communicate with customers?

In the central contact center / customer service department In branches

Only some bank advisors / sales representatives

79%

All bank advisors /

sales representatives

23%

None26%

Only some video-trainedrepresentatives / experts

79%

Allrepresentatives

17%

None4%

Q: Which services do you offer through video banking?

0% 10% 20% 30% 40% 60% 70% 80% 90% 100%50%

Saving accounts / investment

Current accounts / cards

Introduction meeting for new customers

Mortgages and loans

Private banking / wealth management

Insurance

Other

Sample: Bankers who have already deployed a video banking service. 53 responses



Q: How can the video calls be initiated?

0%

10%

20%

30%

40%

50%

Scheduled call by the bank representatives(Meeting Invitation)

Click-to-call from in-branch kiosks

Click-to-call on your website

Click-to-call from ATMs

Click-to-call in your mobile application

OtherEscalation from a chat session to a video session

Scheduled call by the customer(Call me back)

Q: Which of these features does your video banking service include?

0%

10%

20%

30%

40%

50%

60%

Video Call Recoding

Document Sharing

More than 2 attendees per call

Digital Signature

Co-browsingSupport of mobile devices

Sample: Bankers who have already deployed a video banking service

53 responses.

Sample: Bankers who have already deployed a video banking service

53 responses.


When asked about some of the key metrics (usage

rate, Net Promoter Score, sale closure rate…) that are

typically used to measure the results of their video

services, many respondents are actually not yet able

to provide concrete answers, which is typical of a tool

that hasn’t reached full maturity yet.

Some significant results have been observed, though:

• The adoption rate among the target segment is

still low, representing a small portion of the total

interactions of the banks in most cases

• For 92% of the respondents who are able to

answer this question, the sale closure rate is

equivalent or higher than the average sale

closure rate of other channels

• For 83% of the respondents who are able to

answer this question, the Net Promoter Score

is equivalent or higher than the average NPS of

other channels

Video banking services are delivering solid results,

when they are used, but there is a strong need to drive

a higher adoption.

Q: What percentage of your customer interactions are currently handled through the video banking channel?

Q: What would you say about the sale closure rate of video banking meetings compared to other channels?

Q: What is the adoption rate among your targeted customer segment?

Q: What would you say about the Net Promoter Score (NPS) of video banking meetings compared to other channels?

0-25%51%

Do not know32%

76-100%6%

51-75%6% 26-50%

5%

51-100% 2% 0-25%

68%26-50%6%

Do not know24%

Do not know53%

It is equivalent to theaverage sale closurerate of otherchannels26%

It is higher than theaverage sale closure

rate of other channels

17%

It is lower than theaverage sales closure rateof other channels4%

It is lower than theaverage NPSof other channels7%

Do not know55%

It is higher than theaverage NPS of other channels23%

It is equivalent to theaverage NPS of other channels

15%


Why haven’t others taken the leap yet?

For those who haven’t launched a video banking service yet, we found out that the top reason for not initiating it yet is

because it is not a business priority. The actual implementation challenges are much less of a concern. If we take a deeper

look at the technology issues that they’ve been facing, the one major difficulty is integrating with existing tools and

workflows.

Q: What has prevented you from offering a video banking service so far?

Sample: Bankers who haven’t fully deployed a video banking service yet.

229 responses.

Q: What were the technology limitations that prevented you from implementing a video banking service?

Sample: Bankers who said “we could not find a suitable technology” to the previous question.

41 responses.


Technology considerations for a successful video banking service

One of the major expectations for video banking is the reliability of

the technology, with 87% of the respondents expecting a video call

success rate of 80% or higher.

Q: For a video banking service to be successful, what would you set as the minimum video call success rate?

Bankers who haven’t fully deployed a video banking service yet. 229 responses.

Sample:

In terms of features, security and support for a variety of devices and operating systems, high video quality

and integration into existing workflows and applications are the top requirements highlighted by those who

haven’t deployed a service yet.

Q: Which of the following features are the most important when deploying a video banking service?

Bankers who haven’t fully deployed a video banking service yet. 229 responses.

Sample:

24%

44%

19%

3%3%2%3%

10%

20%

30%

40%

60%

70%

80%

90%

100%

50%


Vendor highlight: how Vidyo’s solutions meet the technical requirements for video banking

Vidyo is the leading video banking platform, and has already been selected by some of the largest financial

services firms in the world, such as Barclays and Royal Bank of Canada, as well as smaller banks and credit

unions.

The success of Vidyo has been built on its ability to deliver all of the key technology features that are required

by our survey respondents, including:

Secure CommunicationWith industry standard encryption and software that has been hardened inside

and out, Vidyo is trusted by the most security-conscious industries - not only

financial services, but also major healthcare providers and federal government

entities.

Ability to Deliver High Quality on MobileVidyo’s patented technology delivers 20% error resilience and supports virtually

all of the devices that customers may own: desktops and laptops (MacOS,

Windows, Linux), smartphones and tablets (iOS and Android)

High Quality And Reliable PerformanceGood communication requires crystal clear video. Vidyo sustains high video

quality conferences over links with variable bandwidth, such as wireless and the

public Internet. Using dynamic network adaptation, the video is continuously

optimized to deliver the best quality possible at any given moment.

Integration CapabilityThrough a very robust set of APIs, Vidyo is able to integrate with virtually any

customer engagement solution.

Flexible deployment optionsVidyo’s video banking solutions can be very easily and quickly implemented

in the cloud over the VidyoCloud platform. When required, on-premises and

hybrid deployment models are also available to meet the needs of virtually any

organizations.


Conclusion

It is therefore no surprise that the adoption of video banking has continued to expand over

the past year. The number of financial services organizations who have launched a service has

almost doubled, and we forecast that many more will do the same in the coming months and

years.

The one thing that they need to pay attention to, though, is to make sure that they do not

only focus on delivering a great service – they must also work on promoting it, and on driving

adoption to make it much more widely used within their customer base. Only then will they

fully benefit from video banking, with the service reaching full maturity.

Most of the lights are green for an accelerated roll-out of video banking services:

• A huge majority of the bankers foresee that this channel can have a positive impact on

their business

• Thanks to the gain in experience of vendors such as Vidyo, the technology challenges can

now all be overcome very rapidly, and services can be launched in just a few weeks

• Business results reported by those who are already running a service are very

encouraging;

• With the digitization of the economy, consumers are more and more keen on using such

mobile technologies rather than visiting a branch


Millions of users around the world visually connect every day with Vidyo’s secure, scalable

technology and cloud-based services. Vidyo offers video collaboration solutions for

companies that require the highest quality video interaction available. Recognized with over

110 patents, the company’s software platform and APIs are used by enterprise customers,

service providers, and ecosystem partners to create innovative HD quality video-enabled

applications embedded into workflows and emerging IoT devices.

For more information: www.vidyo.com

As a global not-for-profit organization, Efma brings together more than 3,300 retail financial

services companies from over 130 countries. With a membership base consisting of almost

a third of all large retail banks worldwide, Efma has proven to be a valuable resource for the

global industry, offering members exclusive access to a multitude of resources, databases,

studies, articles, news feeds and publications. Efma also provides numerous networking

opportunities through working groups, webinars and international meetings. True to its

vocation, Efma has recently developed an Innovation portal which aims to identify and award

the most innovative projects in the retail financial services arena.

For more information: www.efma.com

CUNA Strategic Services, Inc. provides credit unions with access to high quality products,

services and technologies delivered with a competitive advantage made possible through

volume pricing and strategic program development. CUNA Strategic Services is jointly owned

by Credit Union National Association (CUNA) and the state credit union leagues. We promote

and support the collaboration of leagues and CUNA to further the growth of credit unions.

For more information: www.cunastrategicservices.com

http://www.cunastrategicservices.com

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