2021 was the year when digital banking came into its own. After the initial shock of the pandemic and the gradual maturing of digital infrastructure, customers and account holders have now embraced digital channels for the majority of activities — and there’s no going back. According to BCG, online banking use increased by 23% and mobile banking by 30%, accelerating the BFSI industry’s overall digitization by 3-4 years. Banks must therefore revisit how they connect and communicate with customers. Video will be at the heart of the conversation as video consumption, too, has skyrocketed beyond usual levels in 2021. It is estimated that a person viewed 100 minutes of video per day on an average in 2021, a significant jump from the last two years.
What does this mean for BFSI marketers? How can they meaningfully leverage video in their marketing mix to reach a new generation of tech-savvy, personalization-hungry account holders? There are seven key trends to note.
1. Hyper-personalization will help drive customer lifetime value
Hyper-personalization treats every customer as a segment of one and tries to deliver a perfectly optimized experience, tailored to their unique preferences. According to research, more than 2 in 3 customers rate personalization as highly important in today’s BFSI landscape, and this need will further intensify in 2022. Banks will have to hyper-personalize their videos for multiple languages, different stages in the customer journey, and demographic-specific preferences to resonate with the audience.
2. The focus will be on trust-building amid the rise of digital banking
Without a physical branch of an in-person banking officer, banks risk losing that all-important “personal touch” when interacting with customers. To counter this, banks will strategically use videos to drive trust, build relationships, and connect with account holders on a personal level. For instance, just in time video advice can assure customers that the bank is there for them at key moments of decision-making — e.g., when exploring a new insurance policy after getting married.
3. Customer intelligence will be needed to keep up with a diverse customer base
The rise of digital banking means that banks can now look beyond a localized customer base without too much of added expenditure. Even with a few branch offices in a new city, a bank may strengthen its customer base through digital platforms. However, this entails greater use of customer intelligence technology in 2022. Banks may rely on video BI and advanced marketing analytics — tightly integrated with CRM systems, websites, and mobile apps — to capture and act on customer intelligence insights.
4. Analytics will boost marketing ROI and optimize multichannel investments
Banks have traditionally suffered from above-average customer churn, with 50% of customers choosing to switch within 90 days of opening an account. In 2022, this challenge will become even more complex due to stiff competition through digital banking that opens up the marketplace to non-local players, and also the rise of neo banks. Banks must rely on analytics to curb churn — video analytics can help detect disengagement, understand the cause of any investment leakage, and pinpoint actions for greater ROI.
5. Live and on-demand video will help succeed in a touchless world
As customers were forced to switch to remote work, remote transactions, and touchless interactions, several decades-old banking mechanisms changed. For instance, video KYC is now the norm for several Indian banks, eliminating the need for physical presence or hard copy documentation. In 2022, banks will use videos in new and innovative ways to strengthen the relationships forged in a touchless world. Live video banking, can be used for authentication, on-demand video can serve financial wellness needs, BFI executives may provide advisory services via video to reach international customers, and more.
6. Banks will shift to SaaS video workspaces to reduce third-party dependence
The very nature of video creation and distribution will transform in 2022. As collaborative video editors and cloud-based video workspaces become more widely available, banks will rely less on third-party agencies. They can now use cloud infrastructure and user-friendly video creation tools to quickly ramp up production in-house and save costs. This will be also aided by a proliferation of SaaS technology, allowing banks to gain from a simple and predictable pricing model.
7. Videos will help cater to a growing demand for financial education offerings
Banks are now looking to diversify beyond their core products, and financial education/wellness is an important area of investment. Research suggests that financial education offerings have become increasingly available in the last few years, and 68% of millennials offered such a product have chosen to participate. This makes sense as in many markets, millennials face above-average debt and 68% feel stressed about their personal finances. In 2022, banks will address this need through video-based financial education offerings that provide account holders with short, bite-sized advice on-demand.
Pivoting to a Next-Gen Video Management Platform
In many ways, these last few quarters have eroded bank-customer relationships by making it difficult to engage through traditional channels. Only 29% of respondents in a recent survey said that they trust their banks to look after their financial wellbeing, compared with 43% two years ago. 2022 is the year when banks reassess existing relationships, build new ones, and strengthen customer engagement across multiple channels. To achieve this, a next-gen video management platform is required — consolidating multi-channel video presence with converged analytics and quick video creation tools. At kPoint, we provide some of the world’s leading BFSI institutions with the tools they need to stay future-focused and ready for the next generation of banking customers.
To know more, contact us.