The Executive Innovation Show

Knowledge Knugget: Why are Banks Scrambling to Video Banking?

December 17, 2020 Carrie Chitsey
The Executive Innovation Show
Knowledge Knugget: Why are Banks Scrambling to Video Banking?
Show Notes 

During today's topic, Carrie Chitsey talks about why banks and credit unions are scrambling to video banking. 

As we are aware, with COVID and with shutdowns, a lot of branches have been either completely closed in certain states or have started to open back up but with limited hours or drive-thru only. This has shaken up the banking industry on how to do normal business, and how to have employees work virtually in a secure manner. Banks typically never had employees working from home. 

There have been a lot of challenges, both on the operational side, as well as the marketing side of how do you acquire customers in the middle of a pandemic. How do you get them to come into a branch to open up an account? We're going to walk through some of those things today and talk about how you solve them. 

“What's the future of the physical branch?”

Banks right now are scrambling on how to put that playbook in place of this new normal. The first thing to talk about is “What's the future of the physical branch?”. That's a big question that we get, and there's a lot of banks that have spent a significant amount of money on creating these open branch pods, taking down the glass, taking down the walls, really trying to have more intimate conversations with customers and make them feel more at home. 

As we look at this new world where banks have had to on a dime, adapt to this new world of how do we get computers in people's homes for our employees to work? How do we hire remotely? There are all these challenges going on, we have a virtual playbook on “Banking Beyond Four Walls” where we cover a lot of this. 

Hybrid Banking Model - Acquiring Customers

What does the new normal look like? It's a hybrid model. There's going to be people that come in. Most banks are holding off on branch expansion for physical locations and rethinking that. 

How do you acquire customers in a pandemic? You do digital marketing. As you look at acquiring customers, if you're doing digital marketing, the biggest issue has been the conversion rate. Getting people to look at an ad, go to your website, and then making them fill out a physical application in a location in a branch, or bringing you a physical driver's license. 

If you look at implementing a video banking solution, you're able to still service customers. You have your relationship managers, your business bankers, private clients, wealth management, those types of folks still having that face-to-face conversation through video with customers. This allows you to increase that wallet share with those customers because they're not just banking with you, they're banking with others. You must be proactively reaching out to your customer base and sending them to your website to have a conversation through a video banking platform. Or they could be increasing their business with somebody else or remembering who reached out during that pandemic. 

Through video banking, you can switch some of these levers and move that needle on the servicing and acquisition side. 

Download the playbook and stay tuned to our weekly episodes of the Knowledge Knugget to learn more best practices and tips on how to incorporate video banking and digital transformation into your bank or credit union.

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