What do all these smartphones mean for branch delivery?
By Suzi McNicholas
It is clear that now, more than ever, today’s consumers are heavily influenced by technology that is simple, cool and connected. Take for instance the smartphone. This device has completely pervaded consumers’ everyday lives, and now credit union members expect similar technologies to accompany more and more of their daily tasks, especially when it comes to banking. This so-called “iPhone effect” has encouraged many credit unions to give an enormous amount of time and resources to expanding their online and mobile banking offerings. Rightly so. However, even though foot traffic in retail branch locations has decreased, the branch still remains the No. 1 sales and member engagement channel among credit unions across the country. While digital channels are critical to meeting members’ transactional needs, the physical branch is still a key component of engaging with members face to face. Contrary to popular belief, consumers still value human interaction when it comes to their personal finances. But now CUs must find a way to service tech-savvy members who demand a better in-branch experience. IDC Financial Insights predicts branch transformation will be an area of major investment over the next 12 months, with a 5 to 10 percent increase compared to 2014. Going forward, credit union branches will feature innovative architectural and visual design coupled with advanced technology, with a goal of maximizing the use of a branch’s staff and physical space. Over the last year, some of the largest credit unions have even opened mini branches, providing members the option of face-to-face banking while shrinking their footprint and reducing operating costs by up to 60 percent. Self-service kiosks have often become part of these future-thinking branch designs, as they enable consumers to conduct transactions through a user-friendly, sleek design while maintaining a healthy balance between an institution’s physical and digital channels. Self-service kiosks enable members to conduct practically all the transactions historically handled by a teller. With kiosks inside a branch, a staff member—often a high-trained and versatile “universal agent”—can easily step in and take over the transaction or provide assistance if necessary. This is much like the grocery store self-checkout model. The big-picture goal behind self-service kiosks is to support the transformation of the traditional branch to a high-tech, high-touch retail environment. This “branch of the future” empowers members to help themselves while also giving credit unions an opportunity to cross-sell other products and services, improve operations, and boost service satisfaction—among members who bothered to stop into the branch in this smartphone age.
Suzi McNicholas is VP/marketing for Source Technologies, a leading provider of integrated solutions for managing financial transactions and other secure business processes. She is responsible for the company’s overall marketing strategy including lead generation, branding and positioning initiatives. You may be interested in attending the CUES School of Product and Channel Management, slated for April 27-28 in Chicago.
