The banking industry is at a crossroads, with the rapid adoption of online and mobile banking transforming how customers interact with financial institutions. 2 in 5 Brits (40%) have a digital-only bank account in 2025, up from 36% in 2024 and a quarter (24%) in 2023.
This shift has raised questions about the relevance of physical branches. Are they destined to disappear, or can they evolve to complement digital platforms? The answer lies in leveraging advanced technologies like computer vision to redefine the role of retail branches, improve security, and enhance customer experiences.
Understanding customer demographics and behaviour
Video analytics enables banks to analyse customer demographics – such as age, gender, and behaviour – within branches. This data helps identify which customer segments still rely on in-branch services and why.
Computer Vision, powered by artificial intelligence (AI), is revolutionising how banks operate. By analysing real-time video footage, financial institutions can gain actionable insights into customer behaviour, optimise branch layouts, and enhance security measures.
Optimising branch layouts and operational efficiency
Heatmaps generated by video analytics highlight high-traffic areas within branches, such as ATMs or advisory desks. This data allows banks to optimise layouts for efficiency, prioritise high-demand services and eliminate underutilised features. For example, if self-service kiosks see significant use, banks can expand their availability while reducing less-used counters.
Video analytics also provides insights into foot traffic patterns and peak times, enabling better staffing decisions. By aligning resources with demand, banks can improve customer satisfaction while reducing operational costs.
Strengthening security with video analytics
While enhancing customer experience is critical, security remains a cornerstone of banking operations. The rise of digital platforms has introduced new vulnerabilities, but video analytics offers robust solutions to mitigate risks in both physical and digital spaces.
Traditional surveillance systems often react after an incident occurs, but AI-powered video analytics proactively detect anomalies in real-time. Computer vision can monitor restricted areas for unauthorised access or suspicious behaviour, identify loitering near ATMs or attempts to tamper with machines, triggering immediate alerts for security teams.
This proactive approach reduces response times and prevents incidents such as theft or vandalism before they escalate.
Fraud remains a significant concern in the banking sector. Video analytics can augment the detection of suspicious activities indicative of fraud, such as irregular transaction patterns or prolonged ATM usage. By identifying how, when and where services interact with other systems, banks can capture the face of the potential fraudster and intervene the next time they interact with any other ATM or even enter a retail branch.
Advanced facial recognition systems ensure secure access to sensitive areas within branches or data centres while enhancing customer privacy. These systems authenticate authorised personnel, identify individuals of interest in real-time and enhance compliance with regulatory standards by maintaining detailed access logs. Face blurring and anonymisation techniques to protect customer identities are also key, ensuring privacy while retaining analytical insights.
Balancing security and customer experience
Security measures often come at the expense of convenience, but video analytics bridges this gap by simultaneously improving safety and customer experience. Long wait times are a common pain point for bank customers, but integrated Computer Vision solutions can monitor foot traffic and queue lengths in real-time, enabling staff to address bottlenecks proactively.
By analysing customer behaviour within branches, banks can deliver tailored experiences – frequent visitors might receive personalised offers based on their preferences, whilst first-time customers can be guided through onboarding processes more effectively.
The case for hybrid banking models
In order to remain relevant, banks need to reach 3.6 billion users globally by 2024. Physical branches will still be vital for complex transactions like mortgage applications or wealth management consultations. However, their role must evolve to remain relevant.
Video analytics provides the insight needed to make strategic decisions about branch networks, determining which locations should remain open, which services should be prioritised and how resources can be allocated more efficiently. For example, if a branch primarily serves older customers seeking advisory services, it might focus on maintaining a personal touch while integrating digital tools for younger demographics.
Some banks are adopting hybrid models that combine physical and digital elements, self-service kiosks equipped with video conferencing enable remote consultations, whilst smaller “micro-branches” focus on high-demand services while reducing operational costs. Video analytics guides these innovations by providing data on customer preferences and usage patterns.
A future built on insights
The death of retail branches may be exaggerated, but their reinvention is imperative. As customers increasingly embrace online and mobile banking, financial institutions must adapt to serve specific purposes effectively. Video analytics offers a roadmap for this transformation by delivering actionable insights into customer behaviour and branch utilisation while enhancing security measures.
By leveraging technologies like real-time threat detection, fraud prevention tools, and demographic analysis systems, financial institutions can strike the right balance between digital convenience and human service excellence. The result? A banking ecosystem that is not only safer but also more efficient and customer-centric — ensuring relevance in an ever-evolving financial landscape.
Originally published in Finance Derivative Issue 11
