ATLANTA—As branches transition from transaction hubs to centers for sales and advice, it could make for some challenging HR issues as a similar transition needs to be taking place with the staff inside those facilities, according to Level 5.
Credit unions will need to transition tellers from their current role to becoming more broadly skilled representatives who address virtually all members’ needs. They have to become consultative sellers skilled at listening to members and determining their needs, explained John Hyche, SVP and principal at Level 5.
“That raises the issues of training, and whether credit unions can keep the current staff they have,” said Hyche, noting that the latter is a philosophical issue for CUs.
Hyche, who said that 70% of Level 5’s current business is with credit unions, said the majority of clients he speaks with are discussing implementing the “universal banker” position.
“Staffing and training is where most financial institutions experience the heartburn with transitioning to universal bankers,” Hyche said. “You have tellers and then you have MSRs, and never the twain shall meet. Some people will just never make the journey in terms of temperament and behavior. That leaves institutions that want to move forward with universal bankers with hard decisions about loyal staff who have been good tellers. But not everyone is capable to step up to the broader skills sets of universal bankers.”
Universal Bankers
Hyche noted that universal bankers can handle about 95% of the work of the traditional teller and member service representative.
“Hiring and training is important,” he said. “Universal bankers must have very good interpersonal skills, be engaging, and must be able to listen to members and connect member needs with credit union products and services.”
Hyche said because universal bankers have more responsibilities than tellers, job satisfaction and career path options are often greater, which reduces turnover.
John Hyche, Level 5
“The cost of a universal banker is on par or perhaps 10% higher than a member service representative. In most cases this is offset by the reduced overall headcount in the branch,” said Hyche.
Hyche cautioned that while skills sets critical to universal bankers’ success, the credit union must create
“You have to give them the right environment, one that eliminates barriers to shaking hands with members. That usually means getting rid of teller fixtures and installing cash-handling equipment to automate as many transactions as possible so your universal bankers don’t get bogged down in the mundane.”
What may be an even bigger task for credit unions, said Hyche, is ensuring members have a consistent and reliable experience across all retail delivery platforms. He said—as have many experts in the past year—that it’s time credit unions address the omni-channel experience.
Mobile Hype
Hyche said there’s a great deal of hype around mobile now, but he never sees it replacing branches—for the simple reason that members want as many touch points as possible with the credit union.
“Consumers don’t tend to jump from one delivery channel to another, they typically want a variety of channels,” said Hyche. “Good omni-channel delivery is a key ingredient for long-term business continuity. It’s one way to bridge the gap between older members with more traditional preferences and expectations and younger members with a technology-first approach to life.”
Hyche emphasized that mobile is a “must-have” platform because it is quickly becoming table stakes.
“But it is no longer a competitive differentiator,” said Hyche. “Mobile is a proliferation channel. Some consumers will become 100% mobile users, but the vast majority—easily two-thirds—will use multiple channels to interact with their financial institution.”
Hyche added that CUs need to offer P2P.
“A clean, easy means for person-to-person transfers will be a big deal,” he said. “But this has to be as easy as reaching in my wallet and handing a buddy some cash to cover my part of the lunch bill.”