Video banking is becoming a more popular channel choice for many bank branches throughout the world, according to RBR’s new report, Teller Automation and Branch Transformation 2017. RBR is a consulting firm specialising in banking, cards and payments and said in the analysis that many banks are implementing ways to aid customers via video conference with a remote agent located in a call centre.

The aim of these in-branch terminals is to lower the  operational costs of working in remote areas where the maintenance of a fully-fledged traditional branch would be unprofitable.

These implementations are popular in China, which originally saw China Guangfa Bank in 2011 paving the path. Many Chinese banks have adopted video terminals since. In the case of China, this allowed banks to migrate a large number of transactions from tellers to terminals such as the intelligent Teller Machine (iTM) deployed by China’s Bank of Communications, reducing labour costs and improving branch profitability.

Turkey has also seen video terminals being deployed by Kuveyt Turk Bank. Their Extreme Teller Machines, or XTMs, allow customers to realise any transaction as if they were in the branch, assisted by an employee on the screen. A set of security implementations, such as cameras and anti-vandalism designs, safeguard the integrity of both the terminal and customer.

“Banks across the world are constantly on the lookout for ways to improve branch efficiency without compromising the customer experience,” says Daniel Dawson, who led the RBR study. “Customers see branches as an important part of their banking relationship, and video banking helps banks offer existing and in some cases new services, more cost-effectively”.

Video-banking on the rise

During the past year, we have seen different ways to implement video for banking applications. Banks like Austria’s Erste Bank und Sparkassen are authenticating customers via video, a move that also UK’s Monzo is adopted.

Last year, we saw Wells Fargo implement a video pilot programme, and Standard Chartered deployed terminals across Asia, Africa and the Middle East.

Just over a year ago, we saw early signs of a demand for video channels, which is starting to materialise now.

by Henry Vilar
Henry is Junior Reporter at IBS Intelligence, follow him on Twitter or contact him at: