Doing More In Branches With Less

Frugality breeds innovation, which means right now is a prime opportunity for change.

Budgets are tight and resources are stretched thin for banks. The good news is that they can do more with less by implementing a universal associate model with the right enabling technology. When executed optimally, this model can help reduce staffing costs, reduce technology costs, and increase advisory conversations at the same time. A win all around, especially in these times.

Many banks will say they already have this model in place, but we find that a true universal associate model is rare.

Leadership typically believes they already have deployed a universal banker model, but when we break it down for them and go through what each associate should be able to deliver at every touchpoint, it becomes clear that they are far from a universal banker,” says Krista Litvack, director of Professional Services, the training and banking consulting arm at DBSI.

Universal associates are cross-trained employees who can fulfill nearly every task and transaction type within the branch, including the workload of tellers and the majority of the platform staff responsibilities. This model can reduce teller costs and eliminate the need for specialized roles and customer hand-offs. At the same time, universal associates are often experts at transitioning high-cost, low-value transactions — like a check deposit or withdraw — to low-cost channels such as self-service or mobile.

Universal associates are a way for banks to turn every interaction into an advisory or sales conversation using their depth and breadth of product knowledge. For example, a universal associate might offer a college savings account to a customer with new or young children. These types of advisory conversations can improve the customer experience significantly. According to a J.D. Power consumer study, customer satisfaction doubled when they received higher-level interactions that led to either additional savings or improved financial journey products, such as retirement planning.​

Training is an important component, but the missing link to a true universal associate model is often technology. A universal banking model with the right technology and process in place can save up to $92,412 per branch, per year. That’s a massive cost reduction worth considering. There are three key areas banks should address to create a seamless integration of technology, people and process.

Cash Automation
Universal associates can’t operate efficiently without removing the largest distractions that a traditional teller has: balancing.​ Staying in balance, counting each individual transaction three times and the cumbersome end-of-night processes all distract from building relationships that secure long-term patronage. Teller cash recyclers are a step in the right direction and help shift the focus from balancing and counting cash to advising and helping the customer. When designed and located properly, these devices eliminate stress, allow for open branch design by increasing security and make overall cash management more effective.​

Technology Optimization
Cash recycler limitations keep many branches from achieving full automation because they limit access for two staff members at a time. This disrupts the customer experience and the workflow of the associates if a third associate needs to use the machine. Instead of investing in more machines, banks can use technology such as remote transaction assist. It helps optimize recylers by allowing cash transactions to be sent from any part of the branch to any recycler or dispenser, pulled down from a queuing system that uses a unique identification number once the associate is at the device.​ One recyclers can now easily be shared among multiple staff members, greatly reducing technology costs and creating more convenience.

Banks can optimize their cash recycler investments even further with kiosks to handle all types of transactions to more-efficient channels while tablet-equipped associates advise customers. This opens up recyclers for associate and customer use.

Tablet-Equipped Associates
The in-branch experience doesn’t have to be tied to a desk or an office: Imagine a universal associate who can help customers from anywhere in the branch to create a unique experience that maximizes branch square footage. Tablet-based teller applications that connect associates to cash automation machines or even self-service kiosks is the final piece in creating a frictionless customer experience and a true universal associate model.

Break down the teller line and remove the need for a hand-off entirely with a tablet that has teller transaction functionality and empower universal associates. Banks that want to implement a universal associate model will need the right design, technology, and process to make the shift. Now is the time to make those investments and position your bank for its post-pandemic future through lowered costs and better customer experiences.

Three Retail Strategies for the Post-Coronavirus Branch

Technology is key to providing a near touch-free experience in the branch and digitally, but many banks are not ready. Less than 50% of organizations believe they are prepared for competitive threats, customer expectations or technological advancements, according to the 2019 “State of Digital Banking Transformation” report.

It’s a daunting task to take on digital transformation. Financial institution didn’t need a crisis to learn that banking from anywhere is a priority for customers, but it has highlighted the slow rate of mobile adoption. Only 17% of financial institutions believe they have deployed digital transformation at scale, with larger organizations being the most advanced, according to the Digital Banking Report. Even after the coronavirus pandemic has settled down, consumers will value banks that make the investment to provide services digitally.

Onboard Customers to Digital Resources
Transacting from anywhere is important, but that’s not the entire branch experience — banks need to provide highly personal financial education and advisory services from anywhere. Focus marketing and communications on educating customers with resources like blogs, social media posts, financial healthcheck tools or webinars on relevant topics like financial planning in an emergency. Content explaining the details and next steps on payment deferrals, personal loans, and programs like the Paycheck Protection Program are especially helpful during this time. Ensure your compliance officer looks over everything before it’s posted.

Offering tools and resources now will position you as an advising partner rather than a product-focused institution. And video banking gives your customers more access to experts. These platforms put face-to-face interactions in the palm of your customers’ hands by allowing them to connect with a banker right from their phone, securely sign and share documents such as photo IDs, documents for new accounts, loans, and other urgent needs.

Give Customers Access to Experts
Banks also need to invest in technology that allows their experts to work from anywhere — including the corporate campus or headquarters too. These investments allow them to work from anywhere makes transitioning to remote easy; they can also improve productivity when they are in the office.

Adding flex spaces in your headquarters allows you to reduce the number of desks provided to full-time employees while improving productivity, the flex space allows your employees to have a space to focus when they need to, collaborate, and it can be used by others when that employee is remote or off-campus.

Your experts will need to have a well-thought-out space where they can perform their remote expert duties. A clean backdrop, technology, and quiet location are all necessary to make sure your experts can handle any question and transaction. However, the space doesn’t have to be expensive or elaborate. Take an Instagram-versus-reality approach to creating the perfect remote expert set-up. Meaning, focus design dollars on what is on camera instead of spending on the entire space. Offer your experts best practices for video conferencing so your exceptional customer service standards are not altered when your associates are working remotely.

Prepare Your Branch for the Post-Coronavirus Consumer
This is truly the time to prepare your branches for the future and provide an even-better experience than before. Consumers post-coronavirus will be more aware of being in confined spaces, such as private offices. A “service spot” offers a unique workspace for associates that is visibly less “confining” but still private, potentially increasing the appeal of getting advisory services in the branches. Ideally, the spots would be set at counter or bar height.

Teller towers are a retail-friendly twist on the old-school teller line. They remove queue lines and create more distance between customers, while providing a better interaction experience with staff.

Easy-to-clean surfaces for furniture, flooring and more will be the way of the future. Brian Silvester, Head of Design at DBSI, offers several examples of easy to clean and green finish options:

  • Stain-resistant surfaces and PFOA-free upholstery are easy to clean and reduce health concerns linked to PFOA.
  • Easy-to-clean laminate instead of wood veneer offers a realistic natural wood-look without having to worry about scratches and special cleaning procedures.
  • Groutless flooring like luxury vinyl tile reduces maintenance over time. There are even options that are carbon neutral.

The post-coronavirus consumer may be hyperaware of germs on everything they touch, and may not be interested in communal brochure racks to gather information. Digital and interactive signage with hand sanitizer nearby in an option that is easy to clean and update. Interactive digital signage allows customers to still obtain the information they want while collecting emails and data for customer insights. Touch-free screens are a great way to showcase your products and services with virtually no risk of community spread.

To create the perfectly prepared retail strategy that can attract and retain customers in any situation, banks need to fuse design, technology and process. Branch transformation, at any level, is both an art and a science.