Market Overview
Growth in digital banking trends leads to the growing use of mobile phones and internet penetration all over the globe, banks are moving toward digital channels to provide their services. Moreover, banks are working in partnership with fintech corporations and other third-party interfaces to create additional customer-centric products & services and thereby deliver an enhanced customer experience. In addition, the government is also initiating and driving the use of digital banking services through various initiatives globally. Furthermore, many banks are implementing machine learning to predict fraud even before it occurs to enhance the security measures in the banking platform. The growth of digital banking is anticipated to benefit significantly from the increased incorporation of innovative technologies in video banking services in the next years. Therefore, this is one of the major driving factors for the video banking service market.
Key Trends
One major trend Credence Research Inc. is expected to see in the video banking service market is its increased adoption in the way people interact and conduct business daily is changing as a result of digitalization, and developments in banking technology will resume having an impact on the way financial services are provided globally.
Another trend that Credence Research Inc. predicts will continue in the video banking service market is technological revolution is also currently taking place in the banking sector as a result of increased competition from fintech start-ups and growing cybersecurity concerns. Increased blockchain and artificial intelligence implementation in the banking sector is driving the market growth. Therefore, these characteristics offer the industry significant, attractive prospects for growth.
Economic Impact Analysis
Industries start to suffer when the economy slows down. The video banking service market report, 2022-2028, considers the economic downturn’s predicted consequences on consumer security and privacy.
- Recession
According to the Credence Research Inc. market report, the recession will significantly impact the global video banking service market. Three prominent banks are bracing for an economic downturn in 2023, such as an uptick in unemployment, even as they continue to enhance from strong customer spending and higher interest rates. Additionally, executives told investors that Chase, Bank of America and Citigroup are projecting a peak unemployment rate of 4.9%, 5.5% and 5%, respectively. Investors anticipate that central banks will boost the average rate of their monetary policies globally to about 4% by 2023, up more than 2% from their average in 2021. These interest rate hikes might result in a worldwide core inflation rate of around 5% in 2023.
- Ukraine-Russia War Impact
Financial stability requirements in the euro area have declined as the Russian invasion of Ukraine shows higher energy and commodity prices and enhanced risks to euro area inflation and advancement, the May 2022 Financial Stability Review (FSR) published by the European Central Bank (ECB) concludes.
- China COVID Outburst December 2022
The current situation of COVID-19 in China has significantly impacted the video banking service market adversely in 2023. The COVID-19 pandemic has accelerated digital technology adoption in the financial sector and the role of financial technology (fintech) firms in supporting households and businesses during the crisis. Moreover, the outbreak of COVID-19 has led to more usage of banking components because remote working and social distancing have helped video banking service to gain a huge customer base. In addition, many banks and fintech industries have introduced various attractive banking strategies for supporting SMEs and consumers to adopt video banking services, creating numerous market opportunities. Thus, the COVID-19 pandemic positively impacted the video banking service market.
- Regional Analysis
In 2022, the greatest revenue share in the video banking service market was attributed to North America. This is attributed to the increasing need for video for financial services, virtual workforce management, and cloud-based collaboration platform are some of the major factors impacting the market growth. In addition, banks and corporations are adopting video collaboration solutions to make faster decisions and avoid the high costs associated with traveling. Digital-first banking has been a top priority for most big banks for many years. The epidemic hastened branch closure plans worldwide as transactional banking went online. Bank closures can hurt local communities, though, and recently, authorities have intervened to safeguard the weak.
STAR Analysis
- Situation
Due to the spread of COVID-19 in 2020 start of the Ukraine-Russia war in 2023, our client, a key player in the video banking service, wants to introduce a new video call application for banks.
- Task
The client wanted to introduce a new application for video banking service services by having a detailed look at the banks where video banking service is most commonly utilized. Additionally, the client requests a review of the major market trends over the previous two to three years, as well as information on the strategies of the major players in the industry, the effects of the upcoming economic slowdown on the market growth, and the most recent product releases among others.
- Action
The client got in touch with Credence Research Inc., which helps the client launch applications to increase its revenues in video banking service services. The report “Global Video Banking Service Market, 2023-2030,” published by Credence Research Inc. in 2023, thoroughly analyzes the banking industries where video banking service is most frequently used. Additionally, it provided the client with a thorough examination of the key market trends over the next two to three years, and information on the sector’s top companies’ strategies, the consequences of the economic downturn, key product introductions, SRC analysis, PESTEL analysis, Porter’s five forces analysis, and Value Chain analysis, among others.
- Result
Credence Research Inc.’s thorough analysis of the video banking service market assisted the client in expanding its revenue opportunities in several economies. Additionally, a thorough analysis of trends, rival pricing, and application introductions helped the client choose the appropriate product price across various banks and geographical areas, which helped the client in enhancing its business revenues double-fold.
