Video Banking Service Market Expected to Reach $247.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Video Banking Service Market By Component (Solution, Service), By Deployment Mode (On-Premise, Cloud), By Application (Banks, Credit Unions, Others): Global Opportunity Analysis And Industry Forecast, 2022-2031" The video banking service market was valued at $71.4 billion in 2021, and is estimated to reach $247.9 billion by 2031, growing at a CAGR of 13.6% from 2022 to 2031.

The phrase "video banking" refers to carrying out financial operations or receiving expert financial advice through a remote video connection. A bank staff and a customer can communicate via video conferencing technology through video for financial services. In addition, consumers may use a laptop, tablet, or smartphone to speak with their bank via service of virtual banking while at home. It uses live video technology to link a client with a banker or financial advisor. Therefore, these are the major video banking service market trends. 

Moreover, video banking can also help to improve the efficiency of banking operations by allowing bank representatives to handle multiple customer interactions simultaneously, and by streamlining the process of completing certain tasks, such as account opening or loan application. In addition, video banking can provide customers with a more secure way of interacting with their bank, as sensitive information can be transmitted and stored in a secure and encrypted manner. Overall, video banking is a flexible and versatile service that can provide a wide range of benefits for both customers and banks, by improving convenience, efficiency, and security, and by helping to build stronger relationships between customers and their banks. In addition, video banking can help banks to reduce costs associated with physical branches and in-person interactions and allows customers to complete a variety of banking tasks from the comfort of their own home and improves the overall customer experience.

Furthermore, video banking is a rapidly growing trend in the financial services industry, and there are several key trends that are driving its adoption as more customers look to open accounts remotely, video banking has become an increasingly popular option for completing this process. Motreover, it is also being used to provide virtual financial counseling, which allows customers to receive financial advice and guidance from the comfort of their own home.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers. For instance, In May 2021, One Touch Video Banking announced a new partnership with NuSource Financial. This partnership helps companies for cutting-edge video banking technology to NuSource's customer base to deepen their relationships with banks and credit unions. One Touch Video Banking allows financial institutions that thrive on face-to-face relationships to connect with customers who thrive on convenience. With the help of this partnership the companies delivered more personal approach to video banking that build customer and bank relationship which provided a strategic advantage to the company and video banking service market size.

On the basis of application, the banks segment is the highest growing segment. This is attributed to the fact that banking institutions provide video banking services which generally involves advice and execution of transactions on behalf of affluent clients. Moreover, banks also help with financial planning, manage client portfolios, and performs a variety of other financial services in relation to a client’s private financing choices with the help of video banking services.

Region wise, North America attained the highest growth in 2021. This is attributed to growing need for video communication, virtual workforce management, and cloud-based collaboration platform are some of the major factors that impact the video banking service market growth. In addition, banks and corporations are adopting video collaboration solutions with the aim to make faster decisions and avoid high costs associated with traveling.

COVID-19 had a positive impact on the video banking service market. Rapid adoption of digitalization in the banking sector during the pandemic helped to grow the video banking market. Moreover, to improve the security features in the banking platform, many banks adopted machine learning to predict fraud even before it happens. In addition, AI in video banking solutions possesses extreme capabilities to reduce account opening time and operational costs. Furthermore, in the approaching years, it is anticipated that this aspect will present the video banking service industry with numerous, very lucrative prospects.

Key Findings of the Study

• By component, the solution segment led the video banking service market in terms of revenue in 2021.
• By deployment mode, the on-premise segment accounted for the highest video banking service market share in 2021.
• By region, North America accounted for the highest video banking service market share in 2021.

The report analyzes the profiles of key players operating in the video banking service market analysis such as AU Small Finance Bank Limited, Barclays, Glia Technologies, Inc., Guaranty Trust Bank Limited, NatWest International, Royal Bank of Scotland plc, Star Financial, StonehamBank, U.S. Bank and Ulster Bank. These players have adopted various strategies to increase their market penetration and strengthen their position in the video banking service market.