Branch transformation is a hot topic these days — it seems everyone has a different idea of what it means. When I ask credit unions what they think of it, I get a myriad of responses. They typically range from disbelief that it is really that important, total confusion about how to address it, or they are frustrated because they have a disjointed strategy that hasn't delivered comprehensive transformation.
The biggest mistake that credit unions make when it comes to branch transformation is the absence of a sufficient strategy that is narrowly focused on driving competitive results. Why should the center of the strategy be focused on being competitive? Because the truth is, if you are not winning market share, you're losing it!
If You Really Are Member-Centric...
Credit unions often claim their No. 1 focus is their members. All the more reason why being competitive should be at the top of the list. Without the proper strategy, members will ultimately suffer from a credit union's loss of member base, revenue, and the ability to offer the solutions they desire. The truth is, consumers are loyal to "experiences" not brands. So if the competition offers members a better, more convenient experience — they will leave.
I am frequently asked to assist with questions about technology differences between vendors. Many credit unions struggle to make decisions about what to buy and how to prioritize it. This is typically rooted in the lack of an overarching strategy that provides direction to the entire organization. The COO, CTO, CIO, branch personnel and the like, often have independent buying strategies and agendas. When I ask questions about the priority of competitiveness, everyone always agrees that it's important. But when I ask what will be their next purchase, I often hear answers that are completely incongruent to that goal.
Branch transformation cannot be fully achieved without eliminating inefficiencies, decreasing costs and extending branch service hours. The competition is totally re-thinking retail delivery and they are not just offering more self-service solutions and modern branch designs.
What Your Competition Is Up To
The competitor's strategy is to utilize technology:
- That will allow them to decrease their labor costs, while leveraging their workforce to gain more productivity. They will continue to offer a full set of traditional services — not just self-service or partially-assisted solutions.
- To offer extended service hours — they will remain open 24 hours a day, 7 days a week. Without the cost of keeping expensive branches operating.
- To build more consumer touch-points through remote locations and modern micro-branches.
- To re-invest cost savings to gain market share through better product offerings.
- To create a sales and service model with concierge-type staffing models focused on increased revenue and consumer engagement. They will focus on relationship building, not processing routine transactions.
True branch transformation will never be achieved with fragmented strategies of deposit automation, restricting consumers to only self-service, and esthetically-pleasing "Apple Store" re-designs. If credit unions don't begin to prioritize and embrace a comprehensive strategy that gives consumers what they want, when they want it, their competitors will be happy to fill the void.
Terrina R. Rishel is CEO of ATM Authority LLC and works with financial institutions on branch transformation strategy. She can be contacted at
