Home Banking Mobile Video Banking: Bridging the Gap From Brick & Mortar to Digital

Mobile Video Banking: Bridging the Gap From Brick & Mortar to Digital

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Mobile Video Banking

21 Reasons Why Financial Institutions Need Mobile Video On Their Side

Banking is definitely becoming more digital, but that doesn’t mean it has to become less human. Around the world, time-starved consumers are increasingly turning to digital channels. Branch visits in the UK, for example, continue to decline as the average consumer makes only five visits per year. Meanwhile, on the digital side, banking apps recorded a 13 percent increase in log-ins last year, reaching a whopping 5.5 billion.

Trailblazing financial institutions are responding to these dramatic shifts in consumer behavior by offering cutting-edge solutions. Mobile video banking, in particular, allows consumers to interact with banking experts via personal devices at their convenience, while maximizing resources and resolving many major branch limitations for financial institutions. Today, four out of five bank and credit unions either already offer or plan to offer video banking. Through this technology, banks and credit unions can not only serve larger geographical territories at lower costs but vastly improve the customer experience.

Benefits even appear to be more robust than originally thought. Credit unions
in the U.S. already partnered with POPin Video Banking Collaboration, the industry’s first interactive video solution, report higher close rates on loans, surprisingly high usage among the elderly, increased access to multilingual personnel, and reduced stress for busy customers and employees alike. “If you don’t have a strong digital and mobile strategy, I don’t know if you’re going to be around,” says Lisa Huertas, Chief Experience Officer at Texas Tech Federal Credit Union, which adopted POPin last year. “I don’t say that to be a doomsday person. Right now, today, you’ve got to be building those
bridges between the physical and digital experience.”

Mobile Video’s Expected & Verified Strategic Benefits

When first developing the concept of mobile video banking, POPin knew there were logical and strategic reasons why human interaction over digital channels made perfect sense. But as the numbers and success stories rolled in from real-world client case studies, one thing became clear—mobile video is literally changing the face of banking.
Consider some of the expected and verified strategic benefits of mobile video banking:

1. Maximized Human Resources: By consolidating employees into a centralized video call center environment, financial institutions can make their best and brightest employees available to more members, regardless of their physical locations.

In fact, South Bay Credit Union in Los Angeles, California, has found that members using its mobile video app often develop such a strong bond with their employees that they request to speak with their favorite representatives.

2. Lowered Costs: The U.S. banking industry closed 1,700 branches in the 12 months ending last June, according to a report in The Wall Street Journal. This represented the largest one-year decrease ever. Consulting firm PwC went on to project the number of bank branches in the U.S. will shrink 20 percent by 2020.

Following this trend, Texas-based Southwest Financial Federal Credit Union managed to slash operating costs by closing its brick-and-mortar branch in Houston, even as it continued to grow and serve members in that area through a new digital branch powered by mobile video banking. “Since they’re not able to walk into the branch, we don’t have a big physical footprint,” says Luke Campbell, Southwest Financial’s Vice President of Sales and Service. “But we feel that our digital footprint is huge and there are no limits to what we can do with that.”

3. Enhanced Retail Geography: Brick-and-mortar branches continue to lose cachet with customers, now ranking as only the third most important consideration when choosing a financial institution (behind online/mobile banking and no ATM foreign fees). Historically,
branch location was the primary driver of perceived convenience, so its fall to No. 3 on the list of customer priorities indicates how dramatically expectations are shifting.
As these rising generations become comfortable video chatting their friends, parents, college professors, etc., it’s natural for them to prefer to communicate with financial advisors via mobile video as well, whether to ask a quick question or apply for a more complex car loan.

4. Connection with Younger Generations: While a broad range of demographics uses mobile technology, financial institutions are reporting surging adoption by
younger generations. In fact, Federal Reserve Board research shows more than two-thirds of millennials are already using mobile banking.

5. Greater Convenience: Standard hours won’t cut it for today’s consumers. Convenience is king, especially when it comes to financial services. With mobile video, financial institutions can offer extraordinary opportunities for engagement at customers’ convenience to win their loyalty and trust.
Take, for example, Pioneer Federal Credit Union of Mountain Home, Idaho, which was able
to significantly extend its hours with the help of its mobile video banking app. Pioneer now fields video calls from 7 a.m. to 7 p.m., Monday through Saturday, enabling members to change PINs, transfer money and more at their convenience.

In fact, South Bay Credit Union in Los Angeles, California, has found that members using its mobile video app often develop such a strong bond with their employees that they request to speak with their favorite representatives.

Southwest Financial took notice of this trend as well. The credit union covers a vast territory across Texas and Louisiana with just one physical branch in Dallas, making the strategic business decision to expand its coverage area by
increasing its digital footprint while shrinking its physical footprint.

6. The attraction of New Customers:
Self-service has its perks, but abandonment rates for online banking applications are at an all-time high of 97.5 percent. Through a collaborative video banking platform like POPin, financial institutions can chat with customers and collect everything they need to open a new account in one sitting, including photo IDs, signatures and more. Such
capabilities are transformative for the banking industry, as customers
no longer have to visit a branch to set up an account—which is especially beneficial for attracting new customers and Select Employee Group (SEG) customers who choose financial institutions through their employers but don’t live close to a branch.

 

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