DENVER—Credit unions, and especially banks, have spent too much time in recent years pushing consumers away from the branch, says one analyst who indicates there’s an opportunity to begin bringing them back.
Amid studies that show more branch transactions each year are offloaded to mobile and Internet banking, Brian Porter, director of business development, branch transformation for Diebold, said FIs can use those same e-channels to transition branches into sales and advice centers. He shared his ideas during the joint World Council of CU’s World CU Conference and CUNA’s America’s Credit Union Conference here.
“We’ve been pushing people away from the branch with electronic channels for years, now it’s time to bring them back,” said Porter, pointing out that the FI retail experience, in the minds of consumers, now competes with merchants like Starbucks. “We can start the experience on a digital channel, like applying for a loan, but come into the branch to close the deal. It’s OK to offload daily transactions to other channels but make the branch the place to come for answers and to buy products—like an Apple Store.”
Most Accounts Still Opened In Branch
Porter reinforced his position saying that the vast majority of FI account openings and product sales still happen in the branch.
“As a society we have not made the leap to buying a mortgage online,” said Porter. “People still want to talk to a human being.”
Porter said that as credit unions lay out their roadmap for braches in the future, decisions should not be based largely on what other banks and credit unions are doing.
“Yes, you must have robust ATM, branch, Internet and mobile channels, but you have to be careful to drive transactions to those channels that your members want,” he said. “So understand your membership and their needs, and deliver a unique experience that is relevant to them.”
Other keys to transforming the branch:
- Branches don’t have to be big, said Porter, recognizing that many FIs are expanding with micro-offices.
- The teller line and even the manager’s desk are barriers to sales. He said “teller pods,” where MSRs stand side- by-side with members looking at the video screen, lead to much more “intimate conversations” and more sales.
- Porter said there are five steps to successful branch transformation: define strategy, assess performance, develop a roadmap, implement solutions and monitor improvement. “Often we do all these cool things with branches, but then we do not measure results. You have to measure,” said Porter, who stressed that branch transformation is a journey. “It’s ongoing and contains course corrections.”