Credit unions are in a tightspot. The pressure is on to lower their operating costs and run asefficiently as possible. At the same time, members want enhancedservices to meet their busy on-the-go banking needs.

So what can credit unions do to provide both operating costreduction and superior member services?

Invest in technology

Specifically, invest in branch transformation technology. Withinvestments in new branch transformation technology, includingkiosks, video tellers and cash recyclers, credit unions can reduceoperating costs, allow existing branches to repurpose staffing, andcreate new branches with smaller footprints and correspondinglylower building and staffing costs.

Don't get overwhelmed

Branch transformation doesn't have to be overwhelming. Theconcept may sound daunting: budgeting for capital investment,planning for branch down time during installation, communicatingchanges to members, but it doesn't have to be. In reality, branchtransformation encompasses a suite of technology solutions fromhardware to software that can be done in a systematic and modularapproach, incorporating cost-saving technology into your branchbased on your objectives and budget. A better way to think of itmight be branch evolution.

Invest for the future

As banking evolves so should the technology within a branch.Customers are looking for instant gratification, which meansshorter wait times and faster transactions. Investing in cashrecyclers within a branch can automate teller transactions at thecounter and allow tellers to spend more time with memberinteractions and less time with currency transactions. This isbeneficial in two ways, first, the wait time for members issignificantly reduced and second, tellers have more time to sellnew products and services.

Whether the initial investment includes cash recyclers, digitalkiosks or automated video tellers one thing is clear, banking isevolving and financial institutions need to evolve as well. Along-term investment in bank transformation technology will ensurefuture efficiencies including lower overhead and increased revenuefrom new members and upsells to current members.

Serve members better

On the service side, branch transformation allows members accessto teller services 24/7 (no more bankers’ hours), and automatingtransactions saves them considerable time when visiting the branch.In addition to lowering operating costs and improving memberservices, branch transformation technology is also a way for creditunions to differentiate themselves to their members. Offeringbetter service through technology can help credit unions attractnew members.

Branch transformation or branch evolution is a win-win for boththe credit union and its members. For the credit union, thistechnology is a cost-saving investment that will allow them tooptimize staffing levels, interact more with and provide addedvalue to members. Members see it as added convenience and servicesfor them, with greater access to technology to complete theirbanking needs so that they can get on with their day.

Susan Napier is president/CEO of Financial TechnologySolutions International Inc. She can be reached at 818-241-9571or [email protected].