ATLANTA—How effective can the “branch of the future” really be if staff are not truly embracing the new concept?
One company is asserting that as many credit unions begin to transition away from a transaction-oriented branch to one that is built more around member engagement and high-quality transactions that build relationships, some are failing to properly train staff on the new approach.
“Without a doubt, the financial services world is changing at a rapid pace—and much of the change is influenced by technology,” said John Hyche, SVP and principal at Level 5. “But before we get too alarmed by all the fintech and ‘disruptor’ noise, let’s pause and consider the real motivator behind the change—the member. As members become adopters of new ways of engaging with their financial institutions, credit unions must take deliberate steps to respond to changing member preferences and demands.”
Level 5 has been implementing a number of the “branch of the future” concepts with clients for more than a decade, said Hyche, referring to steps such as FIs removing teller lines in favor of interactive teller pods, adding interactive video walls, touch pads and more. “In as sense, the physical transformation of the branch is the easy part of the process. The more difficult part is the cultural transformation from a transactional to a service/sales mindset.”
Making Changes 'Stick'
Hyche said Level 5, which works exclusively with financial institutions and primarily credit unions, finds that many of its clients are “challenged” by these cultural changes—challenged to make them “stick.”
John Hyche, Level 5
“In that sense, the change in the consult, design, construct sequence for the physical environment is the addition of training services,” emphasized Hyche. “To us, this is a normal, rational extension of the branch transformation process. We believe that transforming branches into more engaging environments but failing to train the staff to be more engaging is analogous to buying a Ferrari but not taking the performance driving course. Sure, it looks good, but you’re not really enjoying the performance that it’s capable of delivering.”
That led Level 5 to develop its “Places” training program. The program focuses on developing and employing interpersonal skills to connect member needs with products and services offered by the credit union.
“In the course of serving our clients, we get to speak with numerous credit unions that have a wide variety of experiences and solutions. One of the primary purposes members have in visiting credit union branches is problem resolution,” he said.
In fact, Hyche said surveys reveal that consumers have a strong preference for resolving issues via a face-to-face conversation, and that their perception of the quality of the resolution is much higher in-person than via a digital channel.
“Some of our more insightful clients have captured this and have taken steps to ensure that their employees are well prepared for these member interactions,” explained Hyche. “Specifically, they require their frontline employees to have and use all of the credit union’s service channels. That way, when a member walks in with a question about bill pay, online banking, or the mobile banking app, the employee can address the issue based on firsthand knowledge and experience.”
Key To Branch Transformation
Hyche said Level 5 believes this approach to training staff will increase among credit unions and become an integral component of the training process for member service personnel.
“Consequently, this will become an integral component of the branch transformation process,” he added.