Today, we're gonna be talking about a question we get all the time — is video banking affordable?
So the one bucket I want to break down on is video banking and the ROI. We have a great ROI calculator that you can click on here in the show notes and see your actual video banking ROI for your individual bank or credit union. But really the ROI comes from several different buckets.
It comes from, on average, a 20% efficiency in your workforce. It comes on the increased conversion rate on your website, traffic, reducing application abandonment rate, increasing the conversion rate of new customers. Then it also comes from the relationship management side and increasing wallet share with existing customers.
The second bucket I wanna talk about is staff optimization. A lot of banks and credit unions have reduced their staff in certain locations with centralized hubs, with smaller micro branches and the ability whether somebody comes into a physical branch and you only have, you know, one business banker in that location.
They're tied up for the next 20 to 30 minutes, having a cove or cubbie where you have video banking to connect that person to another business banker in a different location really allows you to optimize that staff across locations.
That really goes into number three, as well as the physical branch, and real estate is not as important in the banking community anymore. Expanding your market share without spending on average 2 million per physical branch location with video banking.
It really allows you to expand into markets where you do not have a physical branch or expand into markets that are outside of that five to a seven-mile radius of driving distance. So it allows you to acquire new customers and hire folks in a centralized hub, in a centralized location to support those markets.
The last one that I wanna talk about is: is video baking affordable? Comparing it to ITMs. And so as we look at interactive teller machines and the average cost being $80,000 per hardwired ITM, that is only good. If somebody is driving to that existing branch location, and if they're an existing customer, it doesn't support new customer acquisition. And in comparison to one ITM at $80,000, the average video banking customer is spending about $1,500 a month or $18,000 a year.
That is not tied to a physical location. So if we compare the 80,000 to 18,000 and the average span has a minimum of three videos ITMs, we're really comparing 18,000 to $240,000. So food for thought on answering the question is video baking affordable. You could click more to really look at our optimizing branch workforce white paper, an infographic, and really walk through that, play around with the ROI calculator.Support the show