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 met 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.
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.
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.
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.
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.
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.
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.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 68.7 Billion |
| Market size forecast in 2030 | USD 172.3 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 12.5% from 2023 to 2030 |
| Number of Pages | 227 |
| Number of Table | 333 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Deployment Mode, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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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.
Free Valuable Insights: Global Video Banking Service Market size to reach USD 172.3 Billion by 2030
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.
By Application
By Component
By Deployment Mode
By Geography
This Market size is expected to reach $172.3 billion by 2030.
Growth in digital banking services are driving the Market in coming years, however, Security concerns regarding the privacy of customers restraints the growth of the Market.
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.
The expected CAGR of this Market is 12.5% from 2023 to 2030.
The Solution segment is leading the Market, By Component in 2022, thereby, achieving a market value of $113.8 billion by 2030.
The North America market dominated the Market, By Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $59.3 billion by 2030.
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