Historically branches are seen as transaction channels. Today, this view of branches has changed and continues to evolve. Members and potential members like the convenience of brick and mortar, they like the demonstration of financial strength and security, but the truth is, they rely less on branches for their daily, weekly and monthly transaction business than for new product adoption and problem-solving.
To be successful in branching, a branch must provide the following:
- Fast, friendly and accurate transactions
- Access to product and service adoption
- Helpful, non-judgmental counsel and advice
- Decisive and empowered problem solving
Of the four requirements above, only one requires the traditional teller line structure. For the other three, the model needs to present more of a conversational, consultative interaction model.
Another result of the change in how consumers interact with branches is the skill set requirements of the employees at the branch. Because branches are not used as often for simple transactions, especially when the branch is not at a SEG location, the number of transactions done in a branch decreases but the length of the conversations increase and the conversations get more complicated. These consumer behaviors result in a more highly trained member service representative that may have been needed in the past. The branch employee today needs to be able to listen, diagnose and prescribe expertly. They need to have a broad understanding of all of the products and services the credit union offers and be able to communicate clearly and concisely the features and benefits of each product and service. Although they don’t need to be loan underwriters/closers, they need to know the basics of loan underwriting so that they can inform and educate the member on the best course of action or the next steps. But even with these added skills and expectations, they still will need to be fast, accurate and complete with all member transactions.
What does the branch of the future look like?
Unless the transaction volume dictates it, the branch does not need a traditional teller line in most cases. If a teller line is indicated, it should be off to a side or the back of the branch. Freestanding, standup member service pods create a more relaxed and conversational environment. These pods can be grouped in pairs sharing the cash recycling machine, a check scanner, and printer between them. They will not have the traditional cash drawer. There should be one ADA approved pod as part of one of the pairs. They will have a CRT that the employee shares with the member as part of the conversation allowing the member to see what the employee is seeing and entering. When appropriate the employee would be able to display the latest credit report and use it as a sales aid in cross-selling other loan products. When possible the employee would share the relationship matrix and show how the member could save money or make more money on new balances brought to the credit union. If a member wants to apply for a loan or enroll in online banking, the employee could pull up the online loan application and walk the member through it. If a member wants to switch banks, the employee will check the credit report for any balances to refinance and also look for any significant payments to transition over to online bill pay and walk them through doing the refinance and helping them with the first two+ bill pay entries. Over 85% of all transactions and conversations will be at these pods.
For very complex inquiries or problem-solving, there should be cubicles at the perimeter of the branch where the employee would take the member for increased privacy. These could also be used for meetings with Wealth Management advisors.
Each branch would have one office that would be used by the branch manager for private meetings with staff or closings. It is anticipated that this would not be the manager office but a typical office for appropriate use. The manager needs to be either on the floor 20% of the time or in the community doing business development and community development 60% of the time building their franchise.
Member engagement flow would include a “concierge” or greeter to greet and direct the visitor immediately upon entry. This greeter would walk the visitor to a pod and begin the conversation, and another employee would take over the greeter role, or when the visitor has an appointment or wanted to talk to a specific person, the greeter would do a warm handoff/introduction.
During busy times there would be no queue lines but the greeter would take their name, and they would be free to sit, have a cup of water or coffee, browse the brochure rack or go online at a stand-up (plus one ADA approved) computer station to check out our website, do some web research, check their account online, etc. Once their name was displayed, the assigned employee would ask for them by name and introduce him/herself and direct them to a pod to begin the conversation.
Their dress/logo wear would quickly identify each employee. During the spring and summer this would be khakis (pants, skirts or skorts) and branded polo shirts, during the fall and winter they would wear khakis (pants, skirts or skorts) and a collared logo shirt, fleece, sweater or sports jacket optional.
Each employee should have a name tag with the non-profit they support with their money, time or talent in place of their title.
Each employee should be digitally savvy and be reasonable experts on the credit union’s mobile, online, loan application software, payment systems, and remote deposit capture. Part of their role will be to help the member become aware of these access points and transition their basic transaction needs to them. Branches should ultimately become centers for problem-solving, research, financial wellness, and discovery. Depending on the configuration of the branch, storefront or freestanding, there could be a drive up window that is serviced from the pods via video feed. Each branch should have a bike rack for our eco-friendly members to secure their bike.
Branch staffing would include one manager, one business developer, and two or more branch employees; the number of employees will be driven by branch volume and time of day as traffic dictates.
Branch hours should be driven by member demand and expectation, not by schedules of the past. Branch hours should also reflect the needs of the community the branch is serving. If a branch is located in an area that is primarily made up by commuters, a schedule that adapts to the commuter schedules should be considered. A flexible staffing schedule will be used to allow for split shifts, part-time employees, job sharing, etc. to meet the branch scheduled.
Branch merchandising would include:
- Digital marketing screens
- Brochure rack with our product and service offering
- A comfortable seating area, facing the digital marketing screen and close to the brochure rack with current publications on money and money management (“Money” magazine, “Consumer Reports,” Wall Street Journal, local Business paper, as examples.
- A charging station for cell phones, laptops, and tablets
- A coffee bar with freshly brewed coffee
- Product/service posters (space available) that are coordinated with product promotions or campaigns
- A community station (area) that identifies our community connections and community give forward via a running ticker
- A member giveback area that demonstrates how much money we have given back to our members via rate and fee structure – a running ticker
- A small business or member philanthropy showcase area where a member that owns a small business can showcase their products/service, and a member that demonstrates their charity in the community can be highlighted.