Leverage Video to Build Trust in the Era of Digital Banking


Digital banking is increasingly becoming the norm for a number of reasons. First, as the median age of the average banking consumer comes down and Gen Z begins to enter the workforce, you are looking at a new generation of tech-savvy customers. Second, new banking products emphasize digital to gain from last-mile connectivity and a larger customer base. Finally, the COVID-19 pandemic persuaded an erstwhile-hesitant group to move to digital banking activities, and there’s no looking back. 

However, despite its advantages, banks often struggle to recreate one element of in-person transactions when going digital: trust. It is vital to incorporate video into banks’ customer engagement strategy to bridge the trust divide and ensure loyalty. 

Trust Makes a Difference

It is a common misconception that when customers open a bank account, they will retain it for the foreseeable future and will not want to undertake the effort of switching banking providers. In reality, 50% of account holders across age groups will likely switch banks when they open a new account. Trust deficit has a lot to do with this trend, negatively impacting relationships and loyalty when the customer isn’t proactively engaged. 

Consider, for instance, the difference in the behavior of a high-trust vs. a low-trust banking customer

  • Customers who trust their bank are more likely to use mobile banking at least once a week (53.8%) than low-trust customers (37.8%). They will also use PC-based online banking more often (39.6% vs. 26.7%). 
  • High-trust customers will turn to their primary bank for credit cards more often (49.3%) than their low-trust counterparts (37.8%). 
  • Those who trust the bank are more likely to have multiple accounts (37.1%) than those who don’t (28.3%). And, there is also a greater possibility that they will open their next account with the same bank (38.8% vs. 21.3%). 

In other words, relationships centered on trust translate into greater profitability for banks. It also implies greater customer lifetime value, reduced churn, and a higher referral rate. To achieve these benefits you need to adopt a video-based customer relationship strategy. 

How You Can Leverage Video to Drive Trust and Build Relationships

Video brings a personal touch to customer relationship management, which may be absent in digital banking. Traditional branch-based banking environments had face-to-face interactions at their core, especially in developing economies like India. A physical branch served as the single point of contact between customers and banks in remote and semi-remote areas. How do you switch to digital without sacrificing these crucial and long-standing relationships? That’s where video comes in. 

    1. Offer just-in-time video advice across the customer journey
      There are strategic moments in the customer journey where a person will seek advice, intervention, or simply another voice. This could be top-of-the-funnel moments like when comparing banks for the perfect product or when going through a new account’s terms & conditions, or even when exploring a product upgrade. Create videos that tap into these “moments of truth” and let the customer know that you are there for them. 
    2. Personalize the banking experience using videos
      According to research, 72% of customers rate personalization as “highly important” in a modern, digital financial service landscape. Personalized videos speak directly to a customer’s individualized needs and wants, thereby helping to build trust. There are several ways to enable video personalization, from multilingual transcripts that speak to customers from non-English speaking regions to targeted videos based on customer intent. For example, if a prospect has visited a particular product page on a bank’s website multiple times, you can use cookie integrations to automatically send a product video via email. 
    3. Craft interactive and informative video content
      Customers that receive timely and comprehensive information are more likely to trust their banking providers. Fortunately, video offers an excellent way to achieve this, as it is more engaging than physical paperwork or e-books. You can make video tutorials and explainers more interactive through section highlights so that customers can quickly reach the information most relevant to them. You can also add video annotations to inform the customer and establish the bank’s knowledge focus. 
    4. Conduct webinars and video events on financial wellness
      Webinars are an excellent way to build trust as there is a real-life banking expert, discussing various topics and speaking directly to the viewer. Worryingly, just 29% of consumers trusted their banks to look after their long-term financial wellbeing in 2020, compared to 43% in 2018. Video events (both live and on-demand) are essential to address this and find a direct channel for customer communication even in the era of digital banking. 
    5. Use cloud infrastructure to scale your video repository
      When it comes to video-based customer relationship strategies, volume is as important as quality. Customers need to know that there is a steady stream of information flowing from their banking provider, and there is a content asset to answer every need. A video management platform built on the cloud provides you with near-infinite scalability so that you can expand your video repository to keep pace with digital banking growth. 


    How kPoint Enables Trust-led Customer Relationships in BFSI

    At kPoint, we recognize that digital banking must be personal and engaging, and not purely transactional in nature. Video opens up a world of possibilities for banks to drive trust and solidify relationships for the long term. The kPoint enterprise video management platform uses the cloud, AI, and advanced analytics to enable hyper-personalization and enterprise-grade scalability. Further, through live and pre-recorded events, you can reinforce trust in your corporate brand and connect with customers on a deeply personal level. 

    To know more, please contact us.

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