Securing the Lobby

Teller transactions are dropping at the rate of 5-7 percent a year at many credit unions--and, in some urban markets, by 20 percent a year.

Simultaneously, traditional methods of CU income generation are declining, necessitating reductions in branch operating costs. Fortunately, the timely evolution of branch technologies helps to make this possible through the use of cash recyclers and dispensers in teller pods.

Many credit unions have, or are considering, transitioning from traditional tellers to universal associates. This move recognizes the need to reduce the number of transaction-only employees and refocus staff energy toward relationship development. This new position combines both sides of the lobby's functions-tellers and member service representatives. At the same time, the workstation often changes from a traditional teller line to a more open format teller pod.

The shift to teller pods and universal associates has many benefits to credit unions. Still, at least twice a month I receive a call or email from a financial institution asking about teller security in the new branch models. The black and white of it is, cash dispensers and recyclers remove cash from tellers' control or quick access, making the machines a more secure delivery model.

The deep issue here is not that the new branch models are less secure. Rather it is staff perception about their vulnerability and new performance expectations. With teller pods, they are no longer separated from their members by a three-foot thick counter, high hoods and gates.

There is clearly a dichotomy between a credit union's desire to connect and develop closer relationships by removing barriers and providing an environment of engagement and partnering, and a traditional teller's desire to be completely separated from members.

This may sound harsh, but an initial solution is to replace existing tellers with new staff who embrace an open and accessible environment. Umpqua Bank, famous for creating a successful new branch business model, advertises for branch staff in both the financial and retail want ad sections. "People can be trained as bankers, but we cannot train personality" is the bank's mantra.

The new branch design should provide an environment that enhances member and staff perceptions of privacy and security. Here are a few methods.

• Design the branch to SafeCatch principles and train staff in the SafeCatch program. This program has reduced robberies and fraud up to 70 percent, while improving member development at the same time.
• Drop the ceiling over the pod to create a defined space.
• Place a panel between two teller pods to increase the perception of privacy.
• Change the floor material to give members a visual clue about where they are expected to stand.
• Design the surface of the teller pod to match your desired level of engagement. A round top suggests no barrier and invites partnering of the screen. A square top is more traditional and the corner helps defines where a member should stand. An elliptical top can softly suggest where a member should stand, while not defining this with a hard line. The open teller environment at a branch of $1.3 billion BlueShore Financial (formerly North Shore CU), N. Vancouver, British Columbia (see above), shows this in action.
• Placing bright lighting above the teller pod can highlight the area where the transaction and conversation will take place. The surrounding lighting can be dimmer, encircling the interaction zone.
• Position the pods away from the front door and down the path from MSR positions.
• Use a cash recycler or dispenser between two tellers.
• Program the cash automation to provide a programmed amount of cash to universal associates in a robbery situation.
• Take time to explain to staff the security and member relationship development rationale behind your particular design.

The branch business model is in a steep evolution. Some credit unions are jump starting transactions by installing video tellers, touting security as a benefit. Others think these machines eliminate the sorely needed human connection.

There are lots of ways to design your new branch or to retrofit an old one. Make certain that the right solution for your credit union-which will drive both efficiency and performance-is not blocked by old perceptions of security.

Paul Seibert, CMC, is principal/financial and retail design, for CUES Supplier member EHS, a NELSON Company, Seattle.