By Ray Birch
CINCINNATI—More credit unions are changing their approach to front-line staff training to meet the growing demands of digital service delivery, according to one person—in large part because they have little choice.
The change brings with it an inherent challenge that is critical—how to provide friendly, personal service in what is largely a remote connection with the member, explained Jeff Boehmer, regional VP at design and build firm DEI.'
As CUToday.info was first to report, for the fourth consecutive year credit unions’ score in the American Customer Satisfaction Index (ACSI) has fallen below banks, now standing at 75 on a 1-100 scale. The study reveals banks now surpass credit unions in nearly every service category as rated by American consumers.
“In the new environment, overall staffing and service is a difficult piece of the equation,” acknowledged Boehmer. “With changing service delivery systems, it makes it even more difficult for credit unions to get staff up to speed and deliver their services in the ways members want.”
The point made by Boehmer is one that has been raised by several analysts interviewed by CUToday.info, who have cited the ACSI findings.
In the ACSI 100-point scale, credit unions now trail banks by three percentage points. Credit union scores in the report have fallen for the last five years, dropping down into a tie with banks in 2018, and then dipping below banks for the first time in 2019. Credit unions’ score has now fallen 12 percentage points from a high of 87 in 2011 ACSI study.
The findings indicate credit unions are typically rated lower on e-channel service delivery.
Goodbye to a Tradition
“In the older, traditional service model, you had tellers in branches that did transactions, counted cash, deposited money…they were often the most critical component of the credit union’s training,” explained Boehmer.
No more. With greater demand for call centers and staff to support ITMs, teller lines are disappearing, transaction service areas in branches are getting smaller, and more staff are being moved into different roles, including backing up the call center. Boehmer noted that while many CUs are now opting for smaller branch footprints, there is greater demand for call center space.
“Finding the actual space to house staff and train them under this new model is completely different than what has ever occurred before,” explained Boehmer. “Imagine that your tellers are now all at a call center versus being on site at each branch.”
Boehmer explained that teller staffed housed in one place makes it is easier for the credit union to deliver a clear message, which is good. But he noted it requires adjusting training methods to focus on a large group, instead on one-to-one education or a smaller gathering.
Jeff Boehmer
Transition in Skillsets
In addition, there has been a transition in the skillsets on which training is taking place.
“This is a totally different environment from tellers that were previously dispersed throughout your entire network, when they are physically interfacing with the members,” he said. “Now they're doing it on a two-way video, on the phone, chat…”
While all of that and other trends has led to increased speculation about the demise of branches, Boehmer doesn’t believe that will be the case. Instead, he said there will always be demand for branches, especially when it comes to consultation, as many consumers/members have expressed a desire for human interaction around more complex transactions.
“And you have the fact some members just like to go to the branch,” he said.
Can’t Afford to be Absent
Moreover, Boehmer said no financial institution can afford not to have a presence within their communities, as that is what often ties them most closely to residents. That’s one reasons more credit unions are starting to dedicate branch space for community involvement, he said.
“I think we will see more of this as credit unions use this space to draw people into the credit union to showcase its services,” he said. “And these new areas are not necessarily just a community space. They can function as a boardroom or a conference room during credit union hours, but have the flexibility to do more after hours, serving as a gathering place for community members.”
One Bank’s Example
Boehmer pointed out, for example, that Bank of America has been ramping up its physical presence.
“Bank of America is rolling out more branches than anyone. But they're different. BofA is embracing the 21st century with branches that have a great deal of self-service, but still keep them connected to the communities they serve,” he said.