Thoughts about Video Teller Machines

The VTM is a good solution for branch transformation, micro branches and flagship branches.

If you read the result of surveys how the participating banks think about the future of branches then I see the VTM fitting quite well to their needs.

Branch transformation:

Banks like to reduce the staff but to enhance the service at the same moment. A VTM is operated by special staff sitting in a call center and helps to prolong the opening hours.

It seems that digital signature and identification of a customer is important to them. The VTM can do this. The customer can scan the ID card / passport, print out A4 contracts and sign & scan them. If necessary a VTM can even dispense cards.

Micro branches:

Banks want to have a greater footprint in areas where they are not yet strongly represented. A traditional brick-and-mortar is very expensive and usually needs several months until it is operational. The VTM does not need a classical branch environment to run. The price and deployment time is far less then the standard branch would require.

Banks want to be present in malls and other locations where they usually do not place a branch. Here is the VTM the ideal solution. A VTM can handle about 95% of the jobs a teller in a branch can do.

The customer has a human touch when communicating with the teller via video and they usually appreciate this, following different newspaper articles and survey results.

The teller can do cross selling because he is actively talking with the customer and present on the screen. If necessary a product specialist can join the conversation to give the customer detailed information about the product he is interested in. Here a VTM might even be better than a branch because the specialist in need can be added because he does not need to physically be present at the side of the customer.

As mentioned above the customer can be identified and sign a contract. Banks seem to like this feature.

Some possible additional locations for a VTM could be airports, metro stations, business districts and residential communities and rural areas.

Flagship branches:

Banks like to show the latest technologies and possibilities together with a fancy or futuristic design in their flagship branches. The VTM helps them to transfer this spirit to their customers.