Banking no longer happens at bank branches! Nearly 3,000 bank branches closed down in the US in 2021, and between 2017 and 2021, nearly 9% of all bank branches were shut down.
While many tasks that once needed a visit to the branch are now online, the 2019 bi-annual survey of the FDIC “How America Banks” noted that 87% of customers still visited them.
So what explains the need for branch banking in an increasingly online and “do it yourself” world of phone apps? Clearly, the access and personal connection with a human face are irreplaceable. And that’s where the popularity of video banking comes from.
In this article, we talk about video banking and how LCAP is the right tech platform to make video banking work for your bank.
What’s Video Banking, And Why Is It the Future of Banking?
Among the horde of new means to reach out to customers that banks have deployed, including chatbots, live and asynchronous messengers, apps, VR, and so on, the only place where you can still talk and connect is video banking.
So what are banks looking to deploy as part of video banking? Let’s look at the possibilities.
Opening a bank account is still one of the hardest things to do, with all the paperwork, identity proofs, multiple choices about savings and checking accounts, and so on.
But imagine a world where your banking app can become the one-stop shop portal for opening an account in under five minutes. A bank relationship manager can guide you as you fill in all your choices and select the right options as per your needs.
Video banking gives banks a chance to reach into the homes of those customers who are unbanked or who might not be actively looking to change their bank and hence don’t want to put in the effort to visit a bank branch.
Onboarding is a great place to explain the benefits of a bank’s products and convince customers to take a chance. Through video banking, financial institutions get a great opportunity to expand their customer base.
Video Teller Machine
VTMs are the future of ATMs. Through live conferencing with a bank video teller, customers can easily understand how to do basic transactions, receive immediate assistance, and request information on products.
VTMs can also assist customers with security functions, such as answering a few simple questions to reset their forgotten ATM PIN. Banks can also use VTMs at strategic places to act as ambassadors of the bank’s customer service and brand.
In-Branch Video Consultation
Video consultation at branches can be a way forward for smaller branches and a leaner workforce. Banks can add a few kiosks with video consultation booths, where customers can come in and ask their banking or product-related questions through a centrally managed team.
Customers can also have in-depth discussions about financial planning or advice with qualified experts from the bank’s side.
Remote Video Banking
The end game of video finance is clearly remote banking – allowing all transactions and discussions to happen at the customer’s home directly through an internet-enabled device.
Apart from basic services, remote banking also offers a chance for the bank to talk to their customers about some key financial life goals from the comfort of their homes, such as:
- Financing their first home or car
- Opening up retirement savings accounts (401 k’s and IRAs)
- Health Savings Accounts
- Evaluating credit options.
A personal touch and a friendly face can be more valuable to the customer than a thousand bank commercials that explain how its products can be useful for these major decisions.
How Low Code Can Help Bring Video Banking Alive
If you are looking to bring digital transformation through video banking, low code/no code is the perfect tech platform for you. Here’s why.
Multiplatform and Cloud-Ready Applications
Low-code application programming is a relatively new technology that has evolved in a world where apps, the internet, and cloud-based services are ubiquitous. Hence most low-code applications are already cloud-ready and work perfectly on multiple platforms.
For a video banking setup, it is important for the application to be able to draw real-time data from the cloud and to work on any platform, including the customer’s mobile phone or tablet. Hence low code is the right choice for video banking.
Security is a growing concern in banking, and once banking services leave the doors of the bank branch into VTM’s and customers’ phones, it is going to be an even bigger challenge.
Low-code application development uses prebuilt, customizable modules that integrate the latest security protocols and are updated automatically as new laws and regulations are evolved by banking authorities.
Using low-code platforms ensures that your video banking application is always up to date on the latest security paradigms for customer authentication, data security, and more.
Video banking can only work if it stands on the shoulders of legacy applications that still store and manage the billions of transactions taking place in US banks every day.
Low code adopts a unique approach to integrating legacy applications with new customer interfaces such as video banking. These applications have built their own libraries consisting of several powerful APIs that let them quickly and easily connect legacy data and code with new applications.
Video banking can only be successful if it provides a unique customized solution to the customer’s problems/queries. If it is merely a transactional experience, customers are sure to get put off by it.
Low code applications help by creating single-window access to data for the bank representative and easy-to-understand, customized application interfaces for the customer.
Four out of five banks and credit unions are today either implementing or considering video banking as the next step in their digital transformation journey. Low code application programming can offer a convenient, fast, secure, and powerful way to achieve video banking success.