BOCA RATON, Fla.-The video ATMs that CO-OP Financial Services is rolling out in conjunction with Diebold are just part of a broader evolution in service delivery, according to one person.
"I do think there is a big change coming in teller automation," forecast Stan Hollen, CEO of CO-OP. "I think we are going to see tangible change in teller lines. It won't be the elimination of tellers, but it will be like the airlines where we will be directed to self-service options. It will be a combination of personal touch and automation."
The video ATMs allow the consumer to use the machine to speak to a live member service rep, whether an employee of the credit union or through the call center services offered by CO-OP.
The company's recent THINK Conference here marked the first time credit unions that belonged to CO-OP Shared Branching and FSCC met as one organization since the merger at year-end 2011. Hollen remains a strong proponent of the shared branching model.
"Shared branching is a little different than ATMs," he said. "There is no reason not to belong to the CO-OP network, especially with the deposit-taking ATMs. There are 10,000 of them."
The reasons every credit union isn't involved in shared branching aren't new, Hollen acknowledged, beginning with fears by some that their members will be poached by another CU.
"There is very little evidence of one credit union preying on another's members, and there are rules against that. Consumers are smart; if they see something they like at the other credit union, they will join-but they will still belong to the other credit union."
Another issue is costs involved, including what Hollen said were high fees by some data processors to activate shared branching. He acknowledged that is a particular burden for smaller CUs.
Overcoming Impediments
"Some feel 'I don't want to negatively effect member service,' and there have been a few cases like that, but it's rare," he said. "Another impediment is the credit union is a large net issuer, then that is an expense to their bottom line. That's why we encourage credit unions to be acquirers of transactions. The real value is in the convenience of a nationwide network of branches, but we are many years away from that."
Still, years away or not, Hollen noted that on a branch basis credit unions in shared branching now represent the third largest network of branches in the country. "We just need 2,000 more branches and we will exceed Bank of America," he said. "People want branches, even younger members."
