By Ray Birch
MOUNTAIN HOME, Idaho—Pioneer FCU has introduced interactive mobile video banking in an attempt to bring more personal service to the growing digital delivery channel.
Experts have shared concerns that as mobile transactions grow, CUs won’t be able to provide the same personal service they deliver in branch via digital and lose a competitive advantage over banks.
“This is bridging the gap between the personal branch service and digital service delivery,” said Elizabeth Thomas, VP of marketing and development. “We want to provide that same personal touch whether the member comes to us at our offices or reaches out through our mobile app.”
The $430-million credit union is using the BankOn Mobile Video platform offered by Financial Town, which claims the product is the world’s first interactive mobile video banking solution. Combining mobile video chat with real-time document collaboration, BankOn Mobile Video allows users to conduct most of their banking needs from mobile devices, Pioneer said. Calls can be initiated through a branded app or web portal, and the video solution plugs directly into the back end of existing systems.
“For us it’s been a conversation about how do we prepare for what we know is coming and the expectations of the Millennial market—which is real time, get it done," said Thomas. "So we created a model for how you can get things done, either sitting on the couch or stopping by one of our branches. What this does is prepare us for serving what will become our new membership base, Millennials, and not forgetting people who want face-to-face service. One of our goals at Pioneer is to serve our members in ways that are easiest for them.”
Similar To FaceTime
Thomas reminded that numerous studies indicate there is a large percentage of Millennials who like personal service, and currently stop in the branch for face-to-face interaction.
“BankOn is a two-way video chat and collaboration platform, so it’s like FaceTime in that there is a video chat function,” explained Thomas. “But the in-video, real-time collaboration element is where the product really shines. So, for instance, you can be on a video chat with a financial representative asking about a mortgage application, and then, in real-time, view the application process in a second pane, ask questions, securely provide ID, accept terms and conditions, provide e-signatures—completing the process completely via the mobile video service call.
“This platform gives our members so much more flexibility in working with the credit union,” continued Thomas. “Think of the stay-at-home mom who can’t get out to the credit union. Now she can just use the new video platform and the experience is the same as coming into the branch—and she didn’t have to pack the kids in the car.”
Thomas said Pioneer began to see tremendous value in video banking when it started placing video teller kiosks, interactive teller machines (ITMs), in its branches two to three years ago. The credit union views the mobile video platform as an extension of that service.
“The kiosks allowed us to extend our hours from the standard nine-to-five to seven in the morning until seven at night,” she said.
Personal Teller Team
Currently, the mobile service is staffed by the same team that supports the video kiosks.
“This is our personal teller team who are all financial solutions specialists,” said Thomas. “But we hope to eventually extend this service so that if someone is looking for a home loan they can reach a mortgage specialist—let them select the expert they need.”
Tracey Miller, VP of branch operations, said the CU’s video kiosks clearly indicate that people will use the extended hours to speak with a person live.
“We definitely began to see members use the credit union beyond normal banking hours when we launched the kiosks,” said Miller, adding that transactions, overall, rose after the kiosks were introduced.
“We had to increase the number of employees handling our same-day transactions due to the kiosks,” Miller said. “We started with one employee and now we have three just to handle the transaction volume across our ITMs.”
What that told Pioneer, said Miller, is that members want more convenience from the credit union and gave the CU the confidence to pull the trigger on the mobile video platform.
“That makes us think this mobile video platform will grow quickly,” said Miller, noting that the service was just released. “This will be especially useful for our military members so they can easily reach us now for personal service.”
Currently the mobile video service is accessed from an app that is separate from Pioneer’s mobile video application. But Thomas said the credit union will eventually add the video platform to the existing mobile app.
“But we will still offer a separate app so non-members can reach us via video to ask questions,” said Thomas.
Thomas would not disclose the cost for the mobile video solution, but said the CU projects it will quickly recoup the expense through additional business.
No Buffering Concerns
Thomas said the credit union does not have concerns about possible video buffering problems, and therefore choppy, slow or hard-to-follow responses from staff.
“Our video platform is very good, and even if there were some video issues the voice quality will remain high,” said Thomas.
The video can be two-way, based on the phone’s capability, so the employee can see the member, as well.
“But the member can turn off that function if they want,” Thomas said.
Thomas added that mobile video interactions are much more effective than phone calls.
“When you are looking over a loan application you can only do so much when you are on the phone with a member,” said Thomas. “You hope they are looking at same thing you are. With this platform staff can show members what they are looking at and be clear about what they are explaining. This takes the guesswork out of it.”