Evolution Helps Lower Operating Costs
Credit unions are in a tight spot. The pressure is on to lower their operating costs and run as efficiently as possible. At the same time, members want enhanced services to meet their busy on-the-go banking needs.
So what can credit unions do to provide both operating cost reduction and superior member services?
Invest in technology
Specifically, invest in branch transformation technology. With investments in new branch transformation technology, including kiosks, video tellers and cash recyclers, credit unions can reduce operating costs, allow existing branches to repurpose staffing, and create new branches with smaller footprints and correspondingly lower building and staffing costs.
Don't get overwhelmed
Branch transformation doesn't have to be overwhelming. The concept may sound daunting: budgeting for capital investment, planning for branch down time during installation, communicating changes to members, but it doesn't have to be. In reality, branch transformation encompasses a suite of technology solutions from hardware to software that can be done in a systematic and modular approach, incorporating cost-saving technology into your branch based on your objectives and budget. A better way to think of it might be branch evolution.
Invest for the future
As banking evolves so should the technology within a branch. Customers are looking for instant gratification, which means shorter wait times and faster transactions. Investing in cash recyclers within a branch can automate teller transactions at the counter and allow tellers to spend more time with member interactions and less time with currency transactions. This is beneficial in two ways, first, the wait time for members is significantly reduced and second, tellers have more time to sell new products and services.
Whether the initial investment includes cash recyclers, digital kiosks or automated video tellers one thing is clear, banking is evolving and financial institutions need to evolve as well. A long-term investment in bank transformation technology will ensure future efficiencies including lower overhead and increased revenue from new members and upsells to current members.
Serve members better
On the service side, branch transformation allows members access to teller services 24/7 (no more bankers’ hours), and automating transactions saves them considerable time when visiting the branch. In addition to lowering operating costs and improving member services, branch transformation technology is also a way for credit unions to differentiate themselves to their members. Offering better service through technology can help credit unions attract new members.
Branch transformation or branch evolution is a win-win for both the credit union and its members. For the credit union, this technology is a cost-saving investment that will allow them to optimize staffing levels, interact more with and provide added value to members. Members see it as added convenience and services for them, with greater access to technology to complete their banking needs so that they can get on with their day.
Susan Napier is president/CEO of Financial Technology Solutions International Inc. She can be reached at 818-241-9571 or email@example.com.