Of late, it has been realised that business expansion through setting up concrete structures is no more a viable business strategy and not efficient either. In every industry, e-commerce is revolutionising the way business is conducted. New business models are replacing outdated ones. As a result, business organisations are redesigning the modus operandi and customer relationship management strategies to keep pace with modern technology.
Banks are no exception to this renovation. 10:00 AM to 6:00 PM branch banking model has already started being 24/7 rendering services through cell phones and internet banking. Banking is now on Facebook too. For the first time ever, DenizBank in Turkey has initiated a new opening in banking services through Facebook, the most widespread social networking site. Customers having Facebook accounts can transfer money 24/7 and check their credit card, deposit and credit accounts. The sophistication of modern banking technology has reached such a height that even the blind or visually impaired people can do banking with extra large keys and voice support system. In 2008, Bill Gates announced that 'banking is essential, banks are not'. The statement signals that the so-called branch banking is going to depart in order to be replaced by electronic banking which continues to attract new clients day by day.
Video banking can perform banking transactions or professional banking consultations via a remote video connection. Interactive teller known as Video Teller Machine (VTM) combines video collaboration and remote transaction processing technology to give the customer the choice of self-service or to connect with a remote teller in a highly personalised interaction.
Unlike Automated Teller Machine (ATM), Video Teller Machine (VTM) combines the advantages of video collaboration and remote transaction-processing technology on it. Through this Video Teller, consumers will be able to connect and interact with a remote banker in a two-way audio/video experience. Depending on the overall automation availability in a country, most of the teller transactions can be performed via this VTM in addition to the usual product sales and services that a bank provides.
Part of the impetus for such tools comes from changing customer behaviour, as well as a desire to shift the routine transactions away from the human teller counter to an automated teller. A centralised teller can be deployed to focus on service and sales, reducing the need for underused teller resource of a bank.
It can not be said that video banking is without flaws, and it not fair to expect that too. Video banking may be used to expand, and not replace opportunities for customer engagement. Video banking should be embraced as part of a multi-channel strategy. And finally, video banking should be integrated with online, mobile, tablet and ATM platforms as well as the core banking system to connect customers with the right resources. As more customer interaction occurs in digital media, banks should devise ways of engaging customers digitally.
Though VTM is currently available only in the developed countries, it is gaining increasing reliability for mainstream recognition in other countries as well. In the days to come, video banking system is going to leverage existing automated teller machines which will be modified to enable the audio and video communications.
Adoption of new technology now takes much less time than in the past. Banks need to adopt video banking if they are going to compete more effectively and offer quick and better service to their customers.
The writer is with the Research and Development Division, Islami Bank Bangladesh Limited. [email protected]
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