Branch transformation is currently the subject du jour. Branchesare not only here to stay, but in fact represent an opportunity forcredit unions to strengthen connections with members, as well asengage and attract the next generation of accountholders. Accordingto recent numbers released from the FDIC, branch closures haveslowed and in some circles, the rate of new branch openings hasrisen. And while it may be true that the branch of the past isdead, the new technology-driven branch model remains essential forcredit unions and an important, physical reminder to thecommunities they serve.

Credit unions face competition from non-traditional sectors ofbusiness. Online-only financial institutions and non-bank financialtechnology organizations are raising the bar for the consumerexperience. This is a driving force behind the evolution of bankingand a reason the branch model must adapt. In fact, it was justreported that Square is becoming a bank. According to an article oninc.com, “By becoming their own bank, they do not have to seek outa separate institution as a strategic partner.”

With all these new entrants into the banking world, today'ssavvy, mobile-dependent consumers demand a technology-rich,digitally-driven banking experience that enables them to bank when,where and how they please. Investing in technology is consistentlypredicted to increase in financial institutions across the country.In addition, when modern technology is paired with a rich in-branchexperience, it becomes an opportunity to strengthen relationshipswith consumers, reinforce the credit union's brand and provide acompetitive advantage. Strategically integrating technology toenhance your in-branch offerings not only adds value by elevatingthe overall member experience, but also generates new efficienciesand benefits across the entire organization.

Make it Memorable

Your members are engaging with their favorite retailers onlinewhile sitting at their desks. They're booking hotel reservationsfrom their mobile phones. While on their tablets, they are orderingdinner for curbside pick-up before heading home. Retailers areengaging and interacting with customers online, via their mobiledevices; in-store, they're providing unique offers, discounts andcoupons as well as the ability to complete purchases with a fewsimple taps on their phones. These same retailers continue toimprove and enhance the customer experience. For example, thelatest order-ahead trend allows a customer to complete and pay foran order online. Then at a time that is most convenient for theirschedule, they can pick up the item curbside without ever actuallyentering the physical location. As a result, retailers haveredefined customer expectations for all transactions, includingfinancial matters.

Leveraging technology to electronically process and automatetasks is critical to ensuring credit unions provide both a positiveand memorable member experience. Incorporating electronicprocessing tools such as eReceipts, eSignatures and eTeller optionsare just a few examples of how technology can boost the branchexperience and drive member satisfaction. These tools make iteasier and more convenient for members to conduct business with acredit union. In today's competitive market, each interaction amember has with their credit union, whether online or in person, isa defining interaction.

Consumers Credit Union, based in Gurnee, Ill., successfullylaunched a creative new branch approach by integrating eSignaturesinto its in-branch kiosk environment. Outfitted with video, voiceand eSignatures capabilities, the credit union's virtual tellerkiosks deliver a digital, self-service experience, whilemaintaining a personal touch.

Amy Lopez, vice president of member experience at Consumers,stated, “By incorporating electronic signature technology, we havenot only created a more pleasant and secure experience for ourmembers, but we have been able to gain efficiencies within ouroperations as well. Providing our members a consistent, positiveexperience across all channels, regardless of where they initiatethe transaction, is a top priority for our institution.”

Make it Efficient

While modern in-branch banking may not be dead, paper is moreand more becoming a thing of the past.

Eliminating paper within the branch is key to digital branchtransformation. It eases compliance burdens, improves efficiencyand saves money, but perhaps most importantly, it enables thecredit union to better serve its members. It also satisfies theenvironmentally conscious consumer.

Electronic processing streamlines frontline and back-officefunctions, benefitting both the consumer and the credit union.Employees can spend more time with the consumer and less time withthe process, generating deeper member relationships. Streamlininginternal business processes is on the wish list of every financialinstitution. Creating a unified and integrated interface to handledocument processing demands brings down barriers for an easy,automatic and safe means of channeling efficiencies.

Infinity Federal Credit Union in Maine recently adopted anenterprise eSignature platform that incorporates automated workflowtechnology, allowing the credit union to more quickly completetransactions with fewer errors. From lending workflow to newmembership processes, the credit union has streamlined tasks thattraditionally have been manually managed and time-intensive.

David Williams, business technology and solutions manager atInfinity, said, “Letting workflow solutions, especially those withbuilt-in eSigning capability, automate each part of the lifecycleof a document is an empowering way to get business done, and helpsus focus our energies on serving the needs of our members.”

Make it Safe and Secure

Digitally driven transactions completed in a totally electronicenvironment not only drive process transformation, they are alsomore secure and provide greater control, helping ensure compliancewith regulatory requirements. Paper documents and the liabilitythat is associated with trying to protect them are hard to controland challenging to secure. Electronically signed and sealeddocuments provide more security than their paper counterpartsbecause they contain more information about who signed them and canbe protected from unauthorized tampering. Most ID theft happens topaper transactions because they are so easily lost, stolen orforged. Electronic records are encrypted and stored automaticallyin a safe and permanent format.

Digitally capturing and truncating checks at the teller linemitigates the risk associated with deposited items. In addition toproviding your members with expedited funds availability,electronic processing ensures data is automatically collected anduploaded into the core processing system, improving the accuracy ofevery transaction.

Ohio's Century Federal Credit Union leverages a businessrules-based eSignature platform to automate operational processesincluding document signing and approvals, enabling the credit unionto securely and efficiently process end-to-end transactions in apaperless environment. The credit union is able to easily controlall activities to ensure strict accordance with institutionaloperating procedures and regulatory guidelines.

Santina Dawson, director of member services for Century,commented, “We no longer have to assume the risks involved withtransporting physical, paper documents. Now our employees cansimply upload member documents and other employees have immediateaccess regardless of their location. This value is critical forthose members who have legal documents associated with theirmemberships and who elect to use branches when doing business withthe credit union.”

In-person banking is not going away, but the brick and mortarfunctionality will most definitely change. The role of a creditunion branch becomes more of a complement to technology and viceversa. The in-branch experience cannot be less than the digitalexperience the credit union provides; it must become the physicalcounterpart to its online presence. By pairing an engaged in-branchexperience with modern technology solutions, credit unions cananswer the challenges of today's economy: The need to controlcosts, improve efficiency and improve the member experience. Bytaking cumbersome processes and consolidating them into a seamless,integrated and automated system, credit unions can streamline thebranch to better compete and place the focus back on themember.

Michael Ball is the VP of Markets & Strategyat IMM. He can be contacted at 800-836-4750 Ext.164 or [email protected].