Modern customers want ‘omnichannel’ banking. This means that customers want access to financial services using mobile phones, online, video conferencing and via social media networks.
According to the Cisco Omnichannel Study, consumers still value and look for bank branches for a more personal banking experience. However the notion that the “old branch is dead” is not completely true. The study has found out that most of the bank branch visitors are also those who use other channels.
Local branches are still the preferred channel for customers looking for personal attention and new services from the banks. 26% of customers stated that they would leave their current banks should advisers and personal advice not be available from their branches.
However, customers will also accept advice being delivered virtually as long as the personal experience is maintained. And the best way to do this is via video for an omnichannel banking experience. Customers are interested in interacting with their banker through video channels; 47% in developed countries and 78% in developing markets.
Another finding of the study is about mobile banking. With internet access improving on mobile devices, mobile is fast becoming a mainstream banking channel. Customers like the real time expense tracking, mobile payments and location based commerce features of mobile banking. 13% of customers in developed countries like to use mobile banking applications for payments and expense tracking, for developing markets it is 18%.
The study also discusses social banking. There are still a lot of customers who are hesitant to include banking into their social activities. In developed countries only 1% prefers using social media channels for banking transactions, 8% in developing markets. The primary concern with is privacy and lack of control over personal information.
Finally, the study talks about video in banking. Video is an important enabler of trust should bank employees could not be physically present. 23% of customers in developed countries and 43% of customers in developing markets recognize video conferencing is an excellent way to provide quality advice if an expert is not readily available.
- 78% of consumers in developed markets and 72% of consumers in developing markets prefer using web applications to pay their bills, managing accounts, checking balances and other banking transactions.
- 13% of consumers in developed markets and 18% in developing markets prefer the use of mobile banking applications for expense tracking, personal finance managements and making payments.
- 1% of consumers in developed markets and 8% in developing markets prefer using social media channels for bank transactions.
- 23% of consumers in developed markets and 43% in developing markets recognize the role of video to provide quality advice should an expert be not available.
- 42% of consumers believe banks are the most trustworthy stewards of their digital footprint such as personal information and transactions.
Earlier this month, ASB Bank in New Zealand and Telstra in Australia demonstrated their belief in the potential of video conferencing. In 2012, banks like ICICI in India or Denizbank in Turkey started to provide some of their online banking services directly into facebook. Recently, ASB Bank proudly announced that 10% of their mobile payments occur via their new facebook app.
According to you, how critical is it for financial institutions to add video services to their branches or their online banking systems? What do you think of Cisco’s ‘omnichannel’ concept? Does it include enough, or too much, innovation to successfully increase customer satisfaction? Do you think your customers will ever want or need to do their banking transactions on facebook?
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