{"id":319781,"date":"2021-08-09T14:48:37","date_gmt":"2021-08-09T11:48:37","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/video-banking-is-finally-becoming-mainstream-will-physical-banks-become-obsolete\/"},"modified":"2021-08-09T14:48:37","modified_gmt":"2021-08-09T11:48:37","slug":"video-banking-is-finally-becoming-mainstream-will-physical-banks-become-obsolete","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/video-banking-is-finally-becoming-mainstream-will-physical-banks-become-obsolete\/","title":{"rendered":"#Video banking is finally becoming mainstream; will physical banks become obsolete?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4f0462b4e49\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4f0462b4e49\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/video-banking-is-finally-becoming-mainstream-will-physical-banks-become-obsolete\/#Digital_transformation_changed_everything\" >Digital transformation changed everything<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/video-banking-is-finally-becoming-mainstream-will-physical-banks-become-obsolete\/#Whats_taken_so_long_to_finally_introduce_video_banking\" >What\u2019s taken so long to finally introduce video banking?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/video-banking-is-finally-becoming-mainstream-will-physical-banks-become-obsolete\/#Video_banking_and_consumer_trust\" >Video banking and consumer trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/video-banking-is-finally-becoming-mainstream-will-physical-banks-become-obsolete\/#Is_branchless_banking_the_future\" >Is branchless banking the future?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Video banking is finally becoming mainstream; will physical banks become obsolete?<\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/img-cdn.tnwcdn.com\/image?fit=796%2C417&amp;url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2021%2F07%2Fabn2-2.jpg&amp;signature=c17d19a3f01ff2ec8fc45e6ce1157bcf\" \/><\/p>\n<div><span style=\"font-weight: 400;\">In 1964, the Picturephone was our first glimpse into the future of video communication when AT&amp;T <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2014\/06\/27\/upshot\/how-the-future-looked-in-1964-the-picturephone.html\"><span style=\"font-weight: 400;\">introduced the technology<\/span><\/a><span style=\"font-weight: 400;\"> at the World\u2019s Fair in New York. Set up as a futuristic demonstration, it was thought then that video calling would become a vital commercial tool in the coming years, but it wouldn\u2019t become mainstream until Skype came out in 2003. Still, it\u2019s been nearly 20 years and we haven\u2019t seen video calling make much of an impact. That is, until recently.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the pandemic forced the globe to stay home and find new ways of communicating, conducting business, and <\/span><span style=\"font-weight: 400;\">managing our finances<\/span><span style=\"font-weight: 400;\">, video calling and teleconferencing played a big part in keeping what was left of our socio-economic fabric together. Now video conferencing platforms are out in full force and almost every commercial industry is taking advantage of video calling capabilities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Big banks have similarly been pushed to adopt this change quickly or risk losing customers to new fintech banks that have become major competitors in recent years. But what exactly is video banking, and how could it impact banks as we know them today?<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Digital_transformation_changed_everything\"><\/span><span style=\"font-weight: 400;\">Digital transformation changed everything<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Video banking is essentially used to refer to any kind of banking services that are offered with video representations to help customers. This is largely made possible due to new technologies, including machine learning or ML.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Machine learning allows AI programs to train against itself so that it can learn and improve customer interactions over time. This model is proving itself to be very effective for banking <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> through customer service chatbots that use natural language processing to understand what customers are asking. The level of personalization in chatbots\u2019 responses to customer questions becomes smarter and more accurate with each interaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ABN AMRO\u2019s video banking features creates an ML\/AI\/Human hybrid experience that increases efficiency for banking advisors and improves the quality of the customer experience in less time. This is much more than just an MS Teams\u00a0call with your bank. When customers utilize the video banking feature, they are linked with a representative based on their customer profile and the information they\u2019re requesting.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Machine learning features allow this data to be pinpointed and analyzed in real time. During the interaction, advisors utilize ML tools that augment their communication with the consumer. When a client asks a question, the AI will make pertinent information available to the advisor, streamlining the conversation toward a solution.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats_taken_so_long_to_finally_introduce_video_banking\"><\/span><span style=\"font-weight: 400;\">What\u2019s taken so long to finally introduce video banking?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although these technologies have been available for over a decade, banking executives haven\u2019t been as concerned with leveraging technology as they were about cutting digital costs. Migrating to the cloud and going digital all seemed like it would be expensive and require extensive training. But the COVID-19 crisis forced executives to see technology in a different way.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before the pandemic, nearly half of financial executives said that scaling down digital costs was their top priority. In October 2020, <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.mckinsey.com\/business-functions\/strategy-and-corporate-finance\/our-insights\/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever\"><span style=\"font-weight: 400;\">90% of surveyed executives<\/span><\/a><span style=\"font-weight: 400;\"> stated they were focused on modernizing their capabilities, investing in technology solutions, and refocusing their entire business around digital technology.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A frontrunner in the move towards video banking, ABN AMRO was one of the first banks to introduce this technology in 2016. Joeri Hartmans, Product owner of ABN AMRO\u2019s Video Banking Team, explains:<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">Despite the digital adoption rate in the Netherlands, a majority of Dutch people still value face to face contact for advice on complex products. We saw huge potential for increasing customer service, longer opening hours, shorter waiting times, more specialized skills remotely available. Customers are really looking for personal conversations, with quality and expertise. What we add with video banking is the convenience of digital that customers need.<\/span><\/p>\n<\/blockquote>\n<p><span>And this early investment certainly paid off. As the pandemic began to tighten <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> distancing restrictions, the bank already had a fully developed video banking service it could offer to customers in addition to its in-person services.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Video_banking_and_consumer_trust\"><\/span><span style=\"font-weight: 400;\">Video banking and consumer trust<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The biggest challenge that banks face when it comes to adopting video banking services is consumer trust. While other countries have been more open to adopting cashless options, Americans have remained skeptical. However, US traffic to mobile banking <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>s went up 85% in April 2020, and <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tokenist.com\/survey-40-of-americans-will-not-use-physical-banks-after-covid-19\/\"><span style=\"font-weight: 400;\">40% of Americans<\/span><\/a><span style=\"font-weight: 400;\"> say that they will not be returning to physical banks after the pandemic is over. In Europe, a whopping <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dataprot.net\/statistics\/mobile-banking-statistics\/\"><span style=\"font-weight: 400;\">74% of citizens<\/span><\/a><span style=\"font-weight: 400;\"> are now relying on mobile banking apps to manage their finances.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the public\u2019s adoption of fintech and other vital banking technologies, why has it taken so long for the industry to introduce video banking services?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It wasn\u2019t just executives that were unsure about going digital. With the evolution of cybersecurity threats, security has been a chief concern for consumers. According to Hartmans, most consumers are aware that the risk is in the hands of their banking institution of choice.\u00a0<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">For most customers, it is the comfort that the video and audio connection will be secure, that the employee is skilled, and that all-in-all it is not too much of a hassle.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">ABN AMRO relies on security precautions such as requiring multi-factor authentication and advanced security measures such as <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.finextra.com\/newsarticle\/37703\/abn-amro-develops-self-healing-cybersecurity-software\"><span style=\"font-weight: 400;\">self-healing security software<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This software is designed to guard against cybersecurity threats much like how the human immune system guards against disease. In fact, immunologists were even brought in during the development phase of the software. The software is inherently decentralized, and designed to repair itself and recognize the exact moment it needs to do so.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additional privacy protection measures that online banking applications often require include biometric logins, meaning all-in-all, digital banking can be more secure than using a physical payment card.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_branchless_banking_the_future\"><\/span><span style=\"font-weight: 400;\">Is branchless banking the future?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While automation is currently used primarily to augment branch banking services, could automation and video banking technology completely replace bank branches in the future? It\u2019s not out of the question with the widespread adoption of online banking services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Last year,<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.npr.org\/2021\/03\/26\/979284513\/what-are-we-going-to-do-towns-reel-as-banks-close-branches-at-record-pace\"><span style=\"font-weight: 400;\">banks closed 3,324 branches<\/span><\/a><span style=\"font-weight: 400;\"> due to the mass exodus to online banking, according to a tally by S&amp;P Global Market Intelligence. If banks want to stay open and remain successful, it\u2019s of the utmost importance that they partner with fintech companies that can help integrate their banking services with easy-to-use apps. Otherwise, they are at risk of losing their customers to more streamlined platforms.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Hartmans, the key is to make sure that customers see video banking in the same way as they see going into the bank and talking to an advisor.\u00a0<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">You have to make sure customers have the same experience and get the same things done. To make sure we really service our customers who are geographically independent, we have to automate and digitize all processes of our products and services. Only when you really integrate video banking with your customer and employee journeys can you then make sure you are successful as a bank.<\/span><\/p>\n<\/blockquote>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/video-banking-mainstream-banks-become-obsolete\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Video banking is finally becoming mainstream; will physical banks become obsolete?&#8221; In 1964, the Picturephone was our first glimpse into the future of video communication when AT&amp;T introduced the technology at the World\u2019s Fair in New York. Set up as a futuristic demonstration, it was thought then that video calling would become a vital commercial&#8230;<\/p>\n","protected":false},"author":1,"featured_media":319782,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/tnw?filter_last=1&fit=1280,640&url=https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2021\/07\/abn2-2.jpg&signature=75ded0ab0d73d4e5e8cd6fb89225efea","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-319781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/319781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=319781"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/319781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/319782"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=319781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=319781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=319781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}