Pub. 8 2013-2014 Issue 4

www.nebankers.org 24 Extraordinary Service for Extraordinary Members. I nteractive teller has taken the banking industry by stormover the past year. At trade shows everywhere, it is consistently the most exciting product being discussed. Interactive teller is allowing banks to consider options that were not previously open to them. As more banks take a look at this technology, it is important to examine some of the factors driving the market in this direction. A fundamental shift is taking place in the consumer mar- ket. Consumers are drawn to the use of technology to make their lives easier. This trend has been occurring in many industries over the past decade. From the airport to the car rental company to the home improvement store, companies are offering more efficient ways to handle customer transac- Why Video Banking and Why Now? Josh Banta , VP Service & Technical Sales, Data Business Equipment Inc. tions. This has led to the customer expectation that their financial institutions should behave the same way. Banks are being challenged to provide multiple channels for their customers. The ATM and online banking have become part of the traditional offering, and mobile banking is soon to fol- low. While these channels are convenient and cost effective, they can’t offer the breadth of service available at the branch. Customers also want banks to be available at hours that are not cost effective to maintain. It is no longer acceptable to expect a customer to make time for a bank visit during normal business hours. While expecting greater availability, customers also want banks to locate in areas that may not be feasible for the traditional branch footprint. Such hours and locations are hard to justify because of the costs involved. High costs make it difficult for financial institutions to meet the needs of the customer. Labor is a major consider- ation but it is only one part of the equation. For a traditional branch, several tellers are needed for a standard eight-hour day; extending hours from 7 a.m. to 7 p.m., for example, increases the need for additional employees. That same tra- ditional branch also may cost the bank more to place and to construct. After the branch is built, comes all the regulatory and compliance costs involved with operating a new location. As you can see, banks are under enormous pressure with major hurdles to overcome. At the end of the day, profitability and the portfolio go to- gether. All banks want more accounts per customer. In order to do this effectively, proper use of the frontline staff must take place. But unless the cuffs come off the tellers, which means removing cash from the equation, their full attention can never be gained. Tellers must become salespeople and be allowed to seek opportunities with each and every transaction. Enter video banking. If a video teller can complete the requested transaction plus discover one additional service or product the bank can offer that customer, bankers and cus- tomers alike will be more satisfied. This technology provides