More and more financial institutions are stepping into the world of virtual banking. They’re attracted by the image of an innovative brand and hope to make their relationship with customers more personalized. Increasingly, many of those companies are also starting to see that virtual branch banking may also be a way to improve customer service and satisfaction as well as save money by remotely offering services that until now were completely confined to physical branches. Experience has now shown that what once was just a theory about the benefits of virtual banking is now well-established fact. Take a look at how virtual banking is changing the face of the typical consumer banking experience.
As a company that is developing virtual bank branch software—a digital channel that offers clients all the functionalities of physical branches—we have theorized a lot about the potential of this technology. However, many theoretically great ideas have proven to be lackluster in practice. How could it be different this time around?
Today, after many successful implementations of our LiveBank virtual bank branch solution in over 20 countries, we can say with certainty that the virtual branch provides value to financial institutions in so many ways that describing it all in one blog post is impossible. Therefore, we have gathered 10 crucial stats that best show our findings all collected through real-life implementations of the LiveBank solution.
- 20% sales recovery
One of virtual branch banking’s most important features is the support it provides to clients. Unlike traditional self-service banking apps, virtual banking makes it possible to interact with the consultant through video, screen sharing or the exchange of documents and other files.
Bank Zachodni WBK (Santander), one of our clients, provides such support with their active engagement solution . Should it discover that a client is struggling to fill in a form or spends too much time in a given section, it displays a pop-up that allows the client to start a conversation with a consultant. As much as 20% of those who received such support successfully completed their application.
- 30% share of the total sales
In addition to saving transactions, virtual banking can help generate completely new sales opportunities. One of our clients observed that up to 30% of all new loan applications were obtained using virtual banking as either the lead or supporting communication channel.
- Up to 45% of virtual sessions involve the video channel
Some virtual banking functionalities, such as live chat, are meant mostly for customer service and support. Some others, such as video calls, can be essential as part of the sales process. A very high rate of conversion can be achieved through advanced personalization enabled by the video channel, including document and file exchange, transaction authorization or screen sharing. Depending on the details of implementation and marketing strategy, between 15 and 45% of all virtual channel sessions end up involving the video channel.
- Even 3000 calls every day
While call centers are still more popular, some banks are already receiving as many as 3000 calls daily through their virtual banking channel. When compared to call center calls, virtual banking’s conversion rate and customer satisfaction are much higher, mainly due to the fact that they simply offer more possibilities (live chat, video and audio calls, advanced interaction functionalities, etc.).
- 5000 new accounts each month
Those high conversion rates can greatly increase the number of freshly opened accounts as it is very easy to open one in a virtual bank branch. The client initiates video verification (also known as digital onboarding or eKYC), shows their ID to the consultant and goes through biometric face recognition. Subsequently, the consultant answers all customer questions and helps them every step of the way. The whole verification process takes up to just one minute. With a good marketing campaign, one can expect great results.
- Costs reduced by up to 50%
Thanks to remote verification and a multitude of functionalities, a virtual bank branch’s offer rivals that of a physical branch. As a result, many banks see virtual banking as a way to save on the money spent each year to keep physical locations running. The latter are being replaced with a centralized team of advisors. Unlike brick and mortar branches, their physical space doesn’t necessarily need to be located in the most expensive part of the city.
And that’s but the most obvious cost-saving opportunity. Others include faster customer service, more efficient use of consultants, or the ability to generate sales in the evening, when clients actually have time to take care of their finances.
- Service time cut by half
Just like costs, time spent on customer service can be optimized as well.
Even today, in 2018, many customers are forced to personally visit their bank to tend to their business. It involves having to deal with street traffic, problems at work and repeated trips in case one forgets some important documents, etc. The virtual bank branch eliminates all of these problems—the client can attend a video meeting from anywhere, authorization is done remotely and files can simply be sent online. Banks often further speed up customer service by offering various perks to their employees. For example, they display rankings of the best consultants, offering bonuses and rewards to the fastest and most efficient ones.
Chatbots are another way to speed up customer service in virtual banking. Consultants can use them to receive ready-made answers for typical customer questions. Subsequently, they can modify them slightly or immediately send them over to the customer as is. In doing so, they also often learn more about the bank’s offer themselves.
- Customer satisfaction in excess of 90%
The speed and convenience of virtual banking positively influences overall customer satisfaction, which regularly exceeds 90%, improving the image of the whole brand. Feedback can be collected in a non-intrusive way by encouraging clients to take a survey displayed for both the client and consultant at the end of conversation.
- As much as 95% of the entire offer available in the virtual branch
Even before virtual banking emerged, many banks began the transformation from paper-based processes to their digital counterparts. A lot of those processes may prove too complex to include in self-service apps, which do not include personalized support. Virtual banking can help them finally leave behind the limitations of physical branches. With the help of consultants, each and every client can now use these tools remotely. Just about any bank product can be virtualized and integrated with LiveBank.
- 250+ strong teams of virtual advisors
The best testament to how popular virtual banking can be is the fact that for some of our clients, the initial team of 5-10 consultants eventually grew to more than 250. And they still have their hands full as even the biggest teams can’t fully prevent customers from hanging up to due having to wait too long. Over time, the efficiency of virtual banking consultants, including the net profit and volume of sales it generates, further increases. Since one can track the number of calls and abandonment rate, banks can easily control the size of their teams to achieve their KPIs.
And what do you think about virtual banking? Have our statistics convinced you about just how beneficial it can be for banks? Our experience has taught us that with the proper strategy and dedication, one can achieve a return on investment really quickly.
Exactly how quickly? Thanks to our stats, you can estimate your potential ROI yourself. And if you need more detailed information, just let us know—we will gladly answer all your questions.