Australia’s banking landscape has shifted dramatically in the digital era. Most everyday financial tasks happen online or through mobile apps, and customers have grown accustomed to 24/7 access, instant updates, and self-service tools. But even in this highly digital world, the need for human connection remains, especially when the stakes are high.
This tension has given rise to phygital banking, a model that blends digital journeys with human expertise. In Australia, phygital is evolving rapidly, and secure video banking has become the critical layer that connects digital convenience with human trust.
Why digital maturity does not eliminate human support
Digital channels now handle the vast majority of routine banking interactions. According to recent reporting by Australian Banking Association, banking interactions across digital channels account for well above 99 percent of all customer activity, reflecting a massive shift away from in-person transactions.
Yet customers still encounter moments in their banking journeys that are too complex, too sensitive, or too high-risk to resolve without human involvement. Digital channels alone struggle with:
- Complex lending inquiries
- Unusual transactions and suspected fraud
- Disputes, hardship support, or emotional financial decisions
- High-value financial decisions that require reassurance
A phygital strategy acknowledges that digital convenience and human trust are complementary, not competing priorities.
The role of secure video in phygital banking
Phygital banking is more than just having digital tools and physical branches co-exist. It is about connecting digital journeys with human expertise without forcing customers to switch channels or repeat information.
Secure video banking is the bridge that makes this possible. Compared to phone or chat support, video offers several advantages:
- Face-to-face clarity for complex or emotional conversations
- Visual guidance that speeds resolution
- Context retention by keeping the customer in the same digital journey
- Audit and compliance support through recorded, secure interactions
This is why major banks in Australia already offer video consultations for selected workflows like home lending advice, using online video PDs instead of a branch appointment. These implementations signal that institutions see video as a trust enhancer, not just another channel to check off.
Where secure video delivers the most value
While video KYC and onboarding has been widely discussed, the areas where video banking delivers ongoing operational value are in servicing and support, not just account openings.
Assisted digital completion
Customers often abandon digital flows because they lack clarity or confidence. Secure video provides an opportunity for real-time guidance, helping customers finish a task in one session instead of multiple follow-ups. This approach increases completion rates and reduces operational costs.
For example:
- Guiding a customer through a documentation upload during a loan application
- Helping resolve a payment error in an online journey
- Clarifying confusing interface points in real time
This assisted digital model has been shown in global banking research to significantly improve customer journey completion when human support is available at the right moment.
Scam risk and customer protection
Australia continues to experience significant financial loss due to scams. According to the National Anti-Scam Centre’s 2024 report, Australians lost over $2 billion to scams in 2024, despite a reduction from the previous year.
Scammers are increasingly sophisticated, using techniques such as phishing, remote access scams, and investment fraud. These situations often occur deep within a digital interaction, when a customer thinks they are completing a legitimate transaction.
Secure video provides a human-in-the-loop option that can intervene at critical points:
- A real person can assess risk in real time
- Customers can receive reassurance and education
- Banks can prevent irreversible loss without pushing customers to branches
Secure video support is one of the more effective ways to deliver that human judgement within a regulated, auditable environment.
Branch closures and the evolving need for phygital
Australia has seen a notable decline in bank branches in recent years. Latest reporting highlights that the country’s bank branch network has shrunk by about 4.6 percent in the latest year, part of a longer-term trend where thousands of branches have closed nationwide.
At the same time, digital banking interactions have surged and branch usage has dropped sharply. While some closures reflect normal evolution, they also underscore a critical service gap: customers who need human interaction often cannot or do not want to visit a branch.
Phygital banking solves this by making human expertise accessible anywhere, especially through secure video, without requiring a physical visit.
What secure video must deliver in regulated environments
Generic videoconferencing tools cannot meet the demands of regulated financial services in Australia. Secure video for banking must include:
- End-to-end encryption
- Identity verification frameworks
- Audit trails for compliance
- Integration with core banking systems
This level of security ensures that video banking is not just a “feature,” but an embedded part of the digital service delivery model.
How banks can apply secure video most effectively
A high-value phygital video strategy typically involves:
Triggering at the right moments
Customers should be offered video support not at random, but at specific points of friction:
- Verification failure
- Loan terms clarification
- Fraud risk flag
- Hardship or dispute resolution
Embedding inside the digital journey
Video should not redirect customers to separate tools. It should be accessible within the app or website in context, with session history and verification preserved. Smart Customer routing should be used to improve satisfaction
Measuring the right outcomes
Metrics should track:
- Completion rates
- First-contact resolution
- Reduction in branch escalations
- Customer confidence scores
These outcomes speak directly to operational efficiency and customer trust. You should be able track these metrics with the video banking platform’s dashboard and reporting feature
A future where phygital banking scales with secure video
The phygital era is not about replacing digital with human interaction or preserving branches at all costs. It is about blending digital efficiency with human judgement exactly where customers need it.
Secure video banking provides a way for Australian banks to deliver real-time, human support inside digital journeys for complex needs, risk scenarios, and high-value decisions.
This approach:
- Improves customer satisfaction
- Reduces unnecessary branch visits
- Enhances fraud and risk response
- Strengthens long-term customer trust
In a digital-dominant market, the institutions that succeed will be those that connect convenience with confidence, using secure video as the human trust layer inside the modern banking experience.