A number of financial institutions are turning to video banking technology to extend their services finds London-based RBR’s Teller Automation and Branch Technology 2019 report. This trend is particularly strong in rural areas, the research found.
Video banking technology provides banks with an additional point of contact for their customers. It enables them to offer a wider variety of transactions and assistance remotely, addressing the needs of customers in areas where full-service branches cannot be profitably located.
Bridging the Gap Between Self-Service and In-Person
The study shows that video banking allows banks to provide remote teller services to assist with transactions such as cashing checks and dispensing cash in denominations that are not typically offered at an ATM. In addition to the expansion of services, the hours of operation can also be extended.
One market where the technology is making a difference is Canada, where it allows credit unions to reach customers spread across the country’s vast geography. An example is FirstOntario Credit Union, which offers remote teller services at ATMs. Members are able to talk to and see a teller via the ATM screen and carry out services including loan payments, cash advances and booking appointments.
Video Banking Helps to Extend Bank Footprints
Banks are using video banking to build a presence in areas where a regular branch may prove too expensive to establish and maintain. In some markets, terminals have been marketed as micro-branches or booths and allow banks to offer assisted self-service transactions. According to RBR’s research, such terminals have grown in popularity within the Turkish market and are currently deployed by banks including Kuveyt Türk and ZiraatBank. DBS Bank in Singapore has deployed similar self-service terminals in soundproof booths to provide customers greater privacy when making video transactions.
“Video banking technology is now at the forefront of banks’ strategies in the provision of new offerings and cost efficiencies,” said Beatriz Benito, who led the company’s study. “Both customers and banks can benefit from the successful implementation of video banking technology in the transition towards customer-centricity.”