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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
Video Banking | Vidyo, Inc. © 2017 3
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
Video Banking | Vidyo, Inc. © 2017 4
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%
Video Banking | Vidyo, Inc. © 2017 5
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%
Video Banking | Vidyo, Inc. © 2017 6
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
Video Banking | Vidyo, Inc. © 2017 7
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 | Vidyo, Inc. © 2017 8
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%
Video Banking | Vidyo, Inc. © 2017 9
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
Video Banking | Vidyo, Inc. © 2017 10
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%
Sample: Bankers who have already deployed a video banking service 53 responses.
Sample: Bankers who have already deployed a video banking service 53 responses.
Video Banking | Vidyo, Inc. © 2017 11
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
Sample: Bankers who have already deployed a video banking service 53 responses.
Video Banking | Vidyo, Inc. © 2017 12
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.
Video Banking | Vidyo, Inc. © 2017 13
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%
Video Banking | Vidyo, Inc. © 2017 14
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.
Video Banking | Vidyo, Inc. © 2017 15
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%
Video Banking | Vidyo, Inc. © 2017 16
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.
Video Banking | Vidyo, Inc. © 2017 17
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
Video Banking | Vidyo, Inc. © 2017 18
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