John Hyche, senior vice president and principle with Atlanta-based design/build firm LEVEL5, said the importance of technology is increasing.
"Technology has both a dynamic and dramatic impact on financial institutions," he said. "Technology changes at a rapid pace, and technology in the branch seems to morph every couple of years."
Hyche cited five examples of financial tech credit unions should be aware of, for reasons both positive and negative:
- Technology bars and computers available for member use are "almost passé," he suggested. "Often the member/consumer is more technologically advanced than the credit union, so dedicating space to this activity is a decision that must rely on the market analysis and business case."
- Cash dispensers and recyclers serve several purposes, including speeding the transaction, providing secure cash storage without the expense of a vault, improving security and supporting the activity of universal bankers.
- Digital signage will remain and grow in prominence as a way to spark members' awareness and allow messages to be tailored to specific audiences and change frequently, Hyche predicted.
- Two-way video in the branch will connect members to subject matter experts at the main office. The technology is "viable," but Hyche acknowledged questions still abound in terms of member acceptance and the availability of the subject matter experts. "In the future, a Skype connection could supplant the in-branch video connection," he said.
- ITMs or VTMs are "all the rage," but Hyche said their real value depends on scale to achieve meaningful reductions in employee expense and member experience. He noted he has heard complaints that ITMs are just a slower version of ATMs because time is "wasted" talking to the teller when all the member wanted was to get cash or make a deposit.
John Mathes, director of brand strategy for Seattle-based Weber Marketing Group, said the trend of more technology leading to fewer teller counters "absolutely" will continue, but added, "A one-size-fits-all approach does not work, even for the same organization."
As transactions continue to migrate to other channels, cash management within the branch becomes an "influencing design factor."
While in-branch technology certainly can save time and money, Mathes cautioned that model does not necessarily work for all locations. He said rural vs. suburban vs. urban locations drive different decisions, as does the demographic make-up of the surrounding geographic trade area for each location.
"But the trends are clear: smaller footprints; shrinking staff; offloading transactions to self-serve; ramping up advice and guidance and delivering a unique branded experience will continue going forward," Mathes predicted.
