Global banks are increasingly turning to terminals offering remote video transactions as part of their branch transformation strategies, according to a new report from Retail Banking Research (RBR).

The Teller Automation and Branch Transformation 2017 report found that banks are implementing video banking as it helps to keep branch costs down while maintaining a strong relationship with customers. It also allows the bank to reach a larger number of customers, reaching people in areas where opening a branch would be impossible or unprofitable.

The study highlights the success of video banking in China, where it was first installed in 2011 by China Guangfa Bank. Over 30 banks in China now use the service, switching a large number of transactions from the teller to terminals.

Turkey’s Kuveyt Turk bank has also recently rolled out its Extreme Teller Machines, XTMs, which feature a touchscreen where customers can perform standard ATM transactions, while receiving assistance from a bank employee via a video link. Labelled mini-branches, they are designed to help the bank reach more customers.

Daniel Dawson, who led the RBR study, said: “Banks across the world are constantly on the lookout for ways to improve branch efficiency without compromising customer experience. Customers see branches as an important part of their banking relationship, and video banking helps banks offer existing, and in some cases new services, more cost effectively.”

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