There are many misconceptions when it comes to self-service kiosks. A kiosk will not replace employees, end customer member service problems or automatically increase sales. But if kiosks are used properly, credit unions can significantly improve business operations and increase member satisfaction levels.
Before immediately jumping onto the self-service bandwagon, there are a few things credit union executives should know to ensure success, including determining the kiosk's purpose, matching that purpose to the kiosks's feature set, educating members about the kiosk during deployment, and never forgetting that a kiosk is still just a machine.
'Bigger' Doesn't Always Mean 'Better'
Bigger is not necessarily better when it comes to self-service technology. Incorporate too many "bells and whistles" and your kiosk can quickly have the opposite desired effect and act as a deterrent to members instead of a convenience. Excessive features can make operating the device confusing and as a result, members can become intimidated.
To avoid deploying kiosks with unnecessary features, credit union executives should first identify their business objective, and then match that objective with the appropriate features. For example, if the kiosk is primarily for transactional purposes such as deposits or bill payments, credit unions may want to incorporate devices such as cash handling, check imaging and credit card processing. Alternately, if the credit union wants to deploy kiosks for new account setups or loan applications, a touch screen and MICR printer may be required to dispense starter or loan checks.
Though an effective kiosk may have user-friendly features, members may still be reluctant to use them. In other words, just because the system is in place does not necessarily mean it will be used. Self-service kiosks can be a disruptive technology, and therefore credit unions must create a strategy to convince members to use them.
At credit unions such as Quorum FCU in Purchase, N.Y., branch employees provided one-on-one introductions to kiosks. Employees approached each member, invited them to the kiosk, and thoroughly explained and demonstrated how the kiosks are used. As a result, members became more comfortable with the device over time, and adoption rates soared.
Contrary to the misconception that older members prefer human contact to self-service, this demographic is actually just as likely to use kiosks as younger, more computer-savvy members. The older members may not be the first in line to use the device, but with introductions such as the ones provided at Quorum, all members can become educated on the benefits and quickly acclimated to the technology, regardless of age or existing technology comfort levels. In addition to initial introductions, however, credit unions must be prepared to provide ongoing assistance if members have questions or problems, and be aware that continuous reassurance may be necessary in maintaining high kiosk usage rates.
The Bottom Line: Kiosks Are Still Machines
Most importantly, credit union executives must understand that a kiosk is not a no-maintenance device that will effortlessly improve member satisfaction. Kiosks are machines and can be extremely successful when it comes to processing transactions and information, but they cannot gauge a member's satisfaction level. There will always be cases where human interaction should be provided.
Furthermore, a kiosk is not always a finite solution for increasing revenue. By offering improved convenience, a credit union can provide an important element to its overall service strategy, thus increasing sales. But if the new device does not improve a members' experience at the credit union and satisfy the need for convenience, members simply will not use the machines and the investment will be lost.
Credit unions that strategically use self-service kiosks by following an organized plan will find success in their deployment. By realizing their business objective, credit union executives can select a kiosk with the appropriate feature sets, eliminating any unnecessary confusion for members. Member adoption rates will increase as branch employees introduce and reassure members of the kiosks' capabilities and benefits. Losing sight of the fact that a kiosk is ultimately a machine can potentially derail a credit union's kiosk-deployment success. But if the kiosks are incorporated into the overall strategy as opposed to being the strategy; credit unions can certainly experience reductions in overhead and enjoy increased revenue.
Bill Lynch is Vice President of Self-Service for Source Technologies.
LETTERS TO THE EDITOR
Credit Union Journal encourages reader feedback. Letters to the Editor can be sent to Managing Editor Lisa Freeman at lfreeman
