I have a few regular themes I explore about future banking, such as videobanking, social finances, chip-based future payments strategies and so on.
This was something I spent most of yesterday discussing with a group of Japanese bankers who were visiting London, followed by a great debate at the Financial Services Club last night entitled: "this house believes that video is the next revolution in channels for banking", sponsored by BT and TANDBERG.
Proposing the motion was led by Roy Vella, Head of Mobile Channels for the Royal Bank of Scotland, who was ably supported by Ellen Carney of Forrester Research (who was virtually there on video from Boston!). Opposing were James Gardner, Head of Innovation at Lloyds TSB and Peter Farley, MD of Financial Insights Europe.
It was a great debate, with the proposers saying that video would bring back the humanity and trust in banking because it is face-to-face. It would enhance the customer experience, and broadband is ready to provide this. It would also enable more sales to be closed, with audit and compliance thrown in, as it’s recorded with all eye and voice movements.
The case against is that it’s another cost, customers don’t want it, people prefer self-serving and don’t need eye contact and that it is not a revolution. You can read more of the case against on James’s
I think I will probably write a lot more on this subject as we go along, and have already written a fair bit about it in the past. The one point, which James picked up on, is that video will make banks naked to the customer. You will literally see into their back offices and could pick up on every smirk, snigger or nose picker in the back office.
I’ve also commented on James’s views today by saying that right now, today, banks will use video to sell high margin, complex products remotely. Pensions, mortgages, savings, investments and other products that customers look to IFA’s and brokers for advice, will be the initial target for remote video to the home.
I already know of one or two banks who are doing this live and finding success and, if you can sell more through these channels with true audit and compliance proofs, then it becomes a no-brainer.
We shall see.