As retail banks have slowly emerged from the globalfinancial crisis of 2008, they are increasingly looking for ways todifferentiate themselves with their products and services.

Studies show that the branch is still relevant in the eyes ofthe retail bank consumer, but the role the branch will play in thefuture is beginning to change.

Retail banks are wrestling with moving from a multichannelenvironment to an omni-channel environment. The difference is,instead of offering a different experience and set of products andservices across various delivery channels, they offer a moreintegrated and consistent experience across delivery channels.These traditional delivery channels include branch, Internet andcontact center to name a few.

Currently, the mobile channel is growing in popularity and use,especially with new applications like remote deposit captured rightfrom a mobile phone or tablet. As the mobile channel grows, videowill be an integral part, but for now, video is the emerging trendin branches.

Transition to Video

One of the solutions powering this next generation branchtransformation is technology that enables virtual face-to-facemeetings with high-definition video. Video allows a retail bank tovirtualize their pool of experts and make them available to morebranches in their footprint, at a lower cost.

In addition, it supports the full lifecycle of the transactionand has the capability to support upfront product and serviceinquires, all the way through to closing the transaction andbooking the revenue.

Not only does a video solution enhance the bank's existingchannels and provide convenience for banking members, it alsoreduces costs for all parties involved. Traveling can be expensive.Today, banks have large mobile sales forces for small, commercial,private and wealth management members, so for the sake of mobilityand convenience, it's crucial that bank representatives sync upwith members via video instead of driving across town for everyinteraction.

By doing this, representatives can increase the number ofcustomer interactions they have daily while reducing travel costs.Due to declining telecommunications costs and rising travelexpenses, video integration is becoming a viable solution forbanks, providing mobility and convenience options for members. Thistranslates into several measurable business benefits as well, suchas greater staff efficiency, lower cost of services sold andincreased closure rates.

Customer Engagement: Of the banks I amcurrently working with, most of the use cases that are beingpiloted center around a few core retail banking services such astreasury management, commercial banking, and investment services. Acommon trend is that once a line-of-business begins to showinterest in supporting a pilot, the other line-of-business leadersbecome interested as well and want to participate in a pilot orlarger scale rollout of the solution. Once integration is approved,getting members to utilize the technology is the next step.

When introducing a customer to video-enabled technology in thebranch, there are three main methods of engagement:

Branch visit: This engagement occurs when acustomer comes into a bank branch with a specific question, lookingto speak with a mortgage expert, but the bank doesn't have anexpert onsite. A bank employee can then direct the customer to aprivate location in the bank, where the customer and an off-sitemortgage expert can meet and discuss the customer's questions viahigh definition video and audio.

Teller introduction: This method of engagementhappens when the bank teller spots an opportunity to cross-sell toa customer based on information the bank possesses about them.Usually this information is gathered through data mining conductedby the bank in order to tailor bank products and services tomembers' individual needs. For example, if a bank teller is helpinga customer and pulls up their information and notices that theydon't currently have a mortgage with the bank, the teller canengage the customer in that conversation and if there is intereston the customer's part, lead them to a private location to engagewith an offsite expert to answer their questions.

Scheduled: This form of engagement may come asa referral from a contact center to schedule a meeting at a localbranch for a time that is more convenient for members. Also, acustomer may personally schedule a meeting with an expert, due to apending transaction or questions about services and needs.

High-definition video and audio solutions are changing thebanking landscape, providing consumers more options on how theybank and as a key differentiator of service. It starts with thesales conversation and through the use of technology and access toexperts, helps close sales. It's fair to say that a winningbusiness strategy combines the strength and immediacy ofold-fashioned, face-to-face relationship building with thecapabilities of next-generation, multimedia collaborationtechnology.

Streamlining processes and offering members instant access toknowledgeable experts, even when members are in remote areas,introduces a personal service resulting in improved customerconfidence in the relationship and greater loyalty.

Tom Caddoo isvertical solutions architect for Cisco Americas BusinessTransformation Group.