As members increasingly use online and mobile channels for their banking needs, visits to traditional credit union branches have become fewer in number. Digital channels not only offer members 24-hour convenience, but also serve as a low cost channel for the credit union. Almost all credit unions these days offer basic services through their mobile banking apps. Visiting your local branch is not as convenient and it is a high-cost channel to maintain. So, how does the credit union branch down the street stay relevant in this changing climate, and also stay ahead? What will a branch location of the future look like?
While members may use online or mobile channels for matters of convenience such as managing accounts, checking account balances, scheduling bill payments or transferring funds between accounts, they still tend to walk into a branch for transactions that are a little more involved, such as a home mortgage application, savings plans, financial advice and investment decisions. Even if they have researched their options online, members might prefer to visit a branch to close the deal after face-to-face interaction with credit union staff in regard matters that are important to them. Therefore, even with the emergence of online channels, branches can no longer be regarded as pure play banking branches but rather a center for member experience, something credit unions see as top priority.
Against this backdrop, how then can a credit union capitalize on its foot traffic or increase its foot traffic to win more high-value business? Understanding and providing members with a personalized experience is a start. Their local credit union will know them by name, not by account number. Technology such as beacons or geo tracking can help. For example, beacons, which are available on the more recent Android and Apple smartphones, enable a credit union's mobile app to deliver highly tailored digital promotions or coupons directly to the consumer's smartphone when the member is in the branch or a specific indoor location. The app has to be installed on a smartphone and the member has to opt-in for promotional alerts for this to work. In such cases, with geo-tracking, credit unions can invite targeted members to drop into the branch when they are nearby to learn more about interested products, and reward them with loyalty programs while banking. A snack bar meeting or fine dining offer can help to better member engagement, while mobility services and analytics can help identify cross-sell and upsell opportunities. Ultimately, this will strengthen the member's relationship with their credit union.
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Another idea is to provide infotainment videos of the credit union's financial products on tablets while members are waiting in line at the branch to transact business. In addition, self-service kiosks or media walls with meaningful and relevant information can help educate new and existing members on several financial products and include simulations on portfolios, loans, insurance products and product updates. A personal video chat just before arriving at the branch can ensure the relationship officer is equipped with the information to provide the right service on time. The relationship officer could also leverage the beacons to provide the member with a personalized greeting and use it to receive feedback on the quality of services.
Along the same lines, the relationship officer and other employees could increase their productivity by leveraging wearables while helping to engage members more actively than before. For example, a relationship officer could use a wearable device, like Google Glass, and could immediately work on responding to notifications, such as one informing them that one of his high net worth members has just arrived at the branch so they can give that member their full attention.
In countries such as India, consumers still love to visit branches to conduct business. Credit unions should capitalize on this cultural trend through an experiential banking model rather than pushing them toward an internet-based model. A member might start the transaction in one channel (online) but might then use the branch to complete the transaction. Thus, the member experience becomes more of an omni-channel one rather than a siloed multichannel one, and this requires integration and consistency across channels.
The credit union can also enhance member experience in the branch by reducing the amount of time a member has to stand in a queue to make a withdrawal, deposit or transfer by using real-time queue busting techniques via mobile apps. Moreover, a member could fill out a form for any of these processes on their mobile device and simply transfer the completed forms across the counter into the banking system using peer-to-peer technologies or scanning codes. The system would identify the member and transaction details, complete the transaction and update the branch records. Additionally, when using analytics to identify member preferences, credit unions could use the beacons to push promotions and personalized offers from the bank and its partners to the member's device.
The credit union branch of the future can stay relevant and ahead by taking on a proactive rather than a reactive role in engaging with credit union members. Furthermore, analytics can help identify the type of consumer to target, while mobility services can help deliver personalized offers and services. But it is the in-branch member experience that is key to winning more high value business. Visits to the credit union branch location might be getting fewer in number, but these visits can be used to win more business.
Swaroop Rao is vice president and head of Global Mobility Practice and Consulting for digital transformation, IOT for enterprises at Happiest Minds. He can be reached at [email protected].
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