Global Video Banking Service Market Size, Share & Industry Trends Analysis Report By Application (Banks, Credit Union, and Others), By Component (Solution, and Services), By Deployment Mode, By Regional Outlook and Forecast, 2023 - 2030

Global Video Banking Service Market Size, Share & Industry Trends Analysis Report By Application (Banks, Credit Union, and Others), By Component (Solution, and Services), By Deployment Mode, By Regional Outlook and Forecast, 2023 - 2030

The Global Video Banking Service Market size is expected to reach $172.3 billion by 2030, rising at a market growth of 12.5% CAGR during the forecast period.

Banks in the Asia Pacific region focused on enhancing the security and compliance aspects of video banking to ensure the protection of customer data and adherence to regulatory requirements. Thus, the APAC region would register nearly 30% share of the market by 2030. The Asia Pacific region's market is poised for continued growth, offering a range of services that meet the evolving needs of a diverse and dynamic market. Increasing competition in the financial sector encouraged banks to innovate and differentiate their services, with video banking becoming a key offering.

The major strategies followed by the market participants are Partnerships & Collaborations as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September, 2023, Nigeria’s Guaranty Trust Bank (GTBank), the banking subsidiary of Guaranty Trust Holding Company Plc, partnered with Infosys Finacle, a division of EdgeVerve Systems, a wholly-owned subsidiary of Infosys, to reveal that GTBank chose the Finacle Digital Banking Suite for its multi-country digital transformation initiative. GTBank's decision was influenced by Finacle's demonstrated success and the solution suite's comprehensive capabilities in retail, wealth, and corporate banking. Additionally, In September, 2023, AU Small Finance Bank Limited came into partnership with Bajaj Allianz Life Insurance to boost financial security for the bank's customers. Through this partnership, AU Small Finance Bank aimed to leverage technology solutions, providing customers access to Bajaj Allianz Life's extensive life insurance product range. Additionally, this collaborative effort marked a significant stride in addressing the varied financial needs of their customer base.

Based on the Analysis presented in the KBV Cardinal matrix; Cisco Systems, Inc. is the major forerunner in the Market. In October, 2023, Cisco Systems, Inc. collaborated with NVIDIA, an American multinational technology company, to unveil the Room Kit EQX and expanded Cinematic Meetings capabilities, both leveraging NVIDIA's AI engine to enhance collaboration experiences through audio and video intelligence. The collaboration with NVIDIA expanded Cisco's portfolio of AI-powered solutions, unlocking the potential for hybrid workers and improving the overall quality of collaborative meetings. Companies such as AU Small Finance Bank Limited, Barclays PLC, NatWest Group Plc are some of the key innovators in the Market.

Market Growth Factors

Growth in digital banking services

Digital banking services, like online banking and mobile apps, have become the preferred way for customers to access their accounts and perform routine banking tasks. Digital banking typically covers basic transactions, balance inquiries, and fund transfers. The use of video banking can enhance customer engagement and build trust. Face-to-face interactions create a more human connection and establish a higher trust level than text-based or automated interactions. Video banking can be integrated with other digital banking channels, offering an omnichannel experience. The expansion of digital banking has enhanced compliance and security measures, which have also benefitted video banking. The development of digital banking is expected to benefit enormously from the expanded incorporation of innovative technologies in video banking services. Therefore, this is one of the significant propelling factors for the market.

Rapid development in automation of the banking industry

Automated onboarding processes for new customers have become more common in the banking industry. Video banking can complement these processes by assisting new customers through the initial steps. Automation generates valuable data and insights banks can leverage to understand customer behavior and preferences. Automation allows banks to personalize the customer experience by using data and analytics to offer tailored services and recommendations. Combining automation and video banking has propelled the evolution of a more efficient and customer-centric banking industry. It has allowed banks to meet customer expectations for convenience and personalized service while improving operational efficiency. As a result, the growth of market is closely tied to the rapid development of automation in the banking industry.

Market Restraining Factors

Security concerns regarding the privacy of customers

Ensuring that video banking services comply with data protection regulations, such as GDPR in Europe and HIPAA in the United States, is essential. Financial institutions must handle customer data with the utmost care and transparency. Video banking sessions must be conducted over secure, encrypted communication channels to prevent eavesdropping and data interception. Establishing robust identity verification processes is essential to ensure that the person on the other end of the video call is who they claim to be. Banks must ensure their partners maintain high-security standards when functioning with third-party vendors or service providers for video banking solutions. Regular monitoring, auditing, and vulnerability assessments can help promptly identify and address security and privacy issues. Financial institutions must have a well-defined incident response plan to address any security breaches or privacy incidents swiftly and effectively. Thus, the above-mentioned factors will hinder the market growth in the coming years.

Component Outlook

On the basis of component, the market is segmented into solution and service. The service segment acquired a substantial revenue share in the market in 2022. The services component in the market encompasses a range of offerings provided by financial institutions, technology vendors, and service providers to ensure the effective implementation and operation of video banking solutions. These services are designed to support video banking services' planning, deployment, maintenance, and optimization. Some service providers offer customer support and interaction handling services, providing skilled agents to handle video banking inquiries and transactions on behalf of financial institutions.

Deployment Mode Outlook

Based on deployment mode, the market is fragmented into on-premise and cloud. In 2022, the on-premise segment held the highest revenue share in the market. On-premise deployment in the market refers to the setup and installation of video banking infrastructure and software within the physical premises of a financial institution or organization. Financial institutions can scale and expand their on-premise video banking infrastructure to accommodate growing demand or new service offerings. On-premise deployment offers control and customization.

Application Outlook

On the basis of application, the market is classified into banks, credit unions, and others. In 2022, the banks segment registered the highest revenue share in the market. Banks can use video banking services to enhance customer engagement, improve operational efficiency, and expand their service offerings. Banks can use video banking for customer support and consultations, allowing customers to connect with a live banking representative for assistance with inquiries, account issues, or general information. Video banking enables customers to open new accounts remotely, eliminating the need for in-person visits. Bank representatives can guide customers through the account setup process and answer questions. Video banking allows banks to offer round-the-clock service availability, meeting the needs of customers who require assistance at any time.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region generated the largest revenue share in the market. This is attributable to the increasing demand for video for financial services, remote workforce management, and cloud-based collaboration platforms, which are significant market-growth influencing factors. In addition, banks and corporations are implementing video collaboration solutions to expedite decision-making and reduce travel expenses. The North American market growth is also fueled by changing customer preferences, technological advancements, and the need for financial institutions to provide efficient and accessible services. These trends will likely shape the market in the region as video banking becomes an integral part of the broader financial services landscape.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include AU Small Finance Bank Limited, Barclays PLC, Glia Technologies, Inc., STAR Financial Bank (STAR Financial Group, Inc.), NatWest Group Plc, Guaranty Trust Bank Limited, StonehamBank, U.S. Bank, Cisco Systems, Inc., and Vidyard.

Strategies Deployed in Video Banking Service Market

Partnerships, Collaborations, and Agreements:

Oct-2023: Glia Technologies, Inc. collaborated with Lumin Digital, a fintech company specializing in digital banking solutions, to enhance digital-first member service by integrating Glia's DCS capabilities into Lumin's online banking platform. This streamlined support across various channels, including SMS, chat, voice, and video, provides members with a faster and more seamless experience. Additionally, the pre-integration of the Glia Interaction Platform within Lumin's digital banking offering ensured a cohesive and uninterrupted digital-first customer experience.

Oct-2023: Cisco Systems, Inc. collaborated with NVIDIA, an American multinational technology company, to unveil the Room Kit EQX and expanded Cinematic Meetings capabilities, both leveraging NVIDIA's AI engine to enhance collaboration experiences through audio and video intelligence. The collaboration with NVIDIA expanded Cisco's portfolio of AI-powered solutions, unlocking the potential for hybrid workers and improving the overall quality of collaborative meetings.

Sep-2023: AU Small Finance Bank Limited came into partnership with Bajaj Allianz Life Insurance, a leading insurance company in India that offers all types of life insurance solutions, to boost financial security for the bank's customers. Through this partnership, AU Small Finance Bank aimed to leverage technology solutions, providing customers access to Bajaj Allianz Life's extensive life insurance product range. Additionally, this collaborative effort marked a significant stride in addressing the varied financial needs of their customer base.

Sep-2023: Nigeria’s Guaranty Trust Bank (GTBank), the banking subsidiary of Guaranty Trust Holding Company Plc, partnered with Infosys Finacle, a division of EdgeVerve Systems, a wholly owned subsidiary of Infosys, to reveal that GTBank chose the Finacle Digital Banking Suite for its multi-country digital transformation initiative. GTBank's decision was influenced by Finacle's demonstrated success and the solution suite's comprehensive capabilities in retail, wealth, and corporate banking.

May-2023: Barclays PLC collaborated with TransferMate, a B2B payments technology, to introduce an international receivables solution, aiding UK businesses in cutting transaction costs and saving time. Successfully piloted with Barclays higher education clients, the solution allowed institutions to invoice international students in GBP and enabled students to pay in their local currency. Additionally, this advancement is crucial for businesses trading internationally, especially in the consumer-to-business sector.

Feb-2023: Glia Technologies, Inc. partnered with ebankIT, a fintech company that enables banks and credit unions to deliver humanized, personalized, and accessible digital experiences, to enhance the digital banking service experience for ebankIT clients. ebankIT integrated Glia's DCS solution into its digital banking platform, providing digital-first customer service. This collaboration aimed to improve the overall customer experience and enhance efficiencies through a unified, single-platform service approach.

Oct-2022: NatWest Group Plc formed a strategic partnership with Vodeno Group, a fully API-based, cloud-native platform and access to a European banking, to establish a Banking-as-a-Service ("BaaS") business in the UK. This collaboration enabled businesses to seamlessly integrate financial services directly into their ecosystems, leveraging Vodeno Group's BaaS technology and NatWest Group's banking technology and UK banking licenses.

Jul-2022: Glia Technologies, Inc. formed a strategic partnership with Access Softek, develops innovative mobile banking software, to integrate Glia's technology into Access Softek's digital banking platform to offer seamless digital customer service (DCS). This collaboration extended Glia's reach, empowered Access Softek to deliver smooth DCS solutions for banks and credit unions, and enhanced the overall online experience for customers and members.

Sep-2021: Glia Technologies, Inc. collaborated with Kasisto, the developers of KAI, a top digital experience platform for financial services. The integration involved incorporating Kasisto's KAI-powered intelligent digital assistant into Glia's Digital Customer Service platform. This integration enabled financial institutions to enhance their support for customers in the digital realm, making the process more effective and efficient.

Product Launches and Product Expansions:

Oct-2023: Barclays PLC launched the Demo Directory, a unique online service for UK businesses, offering easy access to capital by connecting them with verified investors, irrespective of their banking affiliation. The initiative aimed to help businesses explore new investment opportunities for growth or navigating challenging trading environments.

Oct-2023: Cisco Systems, Inc. integrated AI tools into Webex to enhance performance, communication, and collaboration. The tools enabled real-time AI usage for clear audio and video calls, overcoming low bandwidth issues. Initially, AI offerings in Webex were limited to text or documents.

Aug-2023: AU Small Finance Bank significantly improved customer service by launching a pioneering 24x7 video banking platform. This innovative service allowed customers to have face-to-face video interactions with expert bankers, resembling video calls. This move redefined convenience by providing round-the-clock support, even on weekends and holidays.

Apr-2023: AU Small Finance Bank Limited introduced the Bharat Bill Payment System (BBPS) and provided bill payment services through video banking, according to a press release. The primary objective of this initiative was to enhance digital accessibility and economic capabilities, fostering increased financial inclusion.

Jul-2020: U.S. Bank planned to introduce a virtual assistant in its mobile app, allowing customers to manage their finances using voice commands. The U.S. Bank Smart Assistant could provide information on account balances, upcoming bills, and spending history, and perform tasks such as money transfers. It utilized natural-language processing (NLP) technology to interpret human speech accurately. The voice assistant underwent testing with employees before its recent rollout.

Acquisition and Mergers:

Oct-2023: AU Small Finance Bank is all set to acquire Fincare Small Finance Bank, a Public Limited Indian Non-Government Company, in an all-share deal, merging them, pending regulatory approvals. According to the agreement, Fincare Small Finance Bank shareholders received 579 equity shares of AU Small Finance Bank for every 2,000 shares held. Additionally, the merger became effective on February 1, 2024.

Sep-2023: Cisco Systems, Inc. announced an agreement to acquire Splunk, Inc., helps to build a safer and more resilient digital world, for $157 per share in cash, totaling about $28 billion in equity value. This strategic move aimed to strengthen digital resilience, advance Cisco's secure connectivity strategy, and combine the AI, security, and observability expertise of both companies for improved organizational security and resilience.

Scope of the Study

Market Segments covered in the Report:

By Application

• Banks
• Credit Union
• Others

By Component

• Solution
• Services

By Deployment Mode

• On-Premise
• Cloud

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• AU Small Finance Bank Limited
• Barclays PLC
• Glia Technologies, Inc.
• STAR Financial Bank (STAR Financial Group, Inc.)
• NatWest Group Plc
• Guaranty Trust Bank Limited
• StonehamBank
• U.S. Bank
• Cisco Systems, Inc.
• Vidyard

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