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Self-Service Technology: Credit Unions and Banks Focus on Different Self-Service Needs
Question: Our institution is considering self-service kiosks for our branch customers. Do you have any recommendations on self-service platforms or approaches that work for retail banking? We are also aware of other organizations' efforts to increase ATM adoption instead of deploying branch kiosks. Any feedback is appreciated.
Answer: Branch kiosk deployments are becoming more common as financial institutions look to self-service technology as the answer in addressing a renewed focus on retail operations. Let's look at your last comment first. Regarding ATMs, some financial institutions are attempting to move ATMs into the teller line to offload basic transactions from the teller. This has met with limited success due to functional, ergonomic and economic issues. Click here to get a better understanding of how transactional kiosks differ from ATMs in the retail branch.
To your main point about distinct self-service platforms and approaches, every institution's requirements are at least slightly different, but they all fall into one of three self-service approaches: remote teller solutions, teller-assisted self-service, and fully automated self-service. A remote teller self-service platform consists of the customer using a transactional kiosk and interacting with a live teller via a display screen. The teller may be located on premises, or remotely. The customer performs the entire transaction on the kiosk, while the teller remotely manages the transaction by monitoring the customer's activity. This approach has met with limited success due to the reduced interactivity between the customer and teller, and the technical challenges associated with managing the kiosk transactions remotely. These factors impact customer satisfaction and adoption. From an ROI standpoint, there are some cost savings around branch staff, as tellers can be aggregated in centralized locations, but the teller-to-customer ratio is still one-to-one.
A teller-assisted self-service platform consists of two or three transactional kiosks positioned directly in front of the teller counter. One teller can observe each kiosk, in real time, with a Teller monitoring station. By following the status of the customer transaction, the teller is able to takeover the transaction at any time. While a relatively new concept, this approach has been positively received because it allows a bank's customers to manage their own financial transactions, while maintaining the teller as a critical component in the overall transaction. Shifting the processing of the transaction from the teller to the customer allows the two to interact on more complex issues regarding current and potential products and services. In addition to creating more opportunity for up-selling and cross-selling, teller-assisted self-service simplifies the staffing model and reduces customer wait time.
A fully automated self-service platform consists of a stand-alone kiosk either in the branch, or at a remote location frequented by customers. There is no direct interaction between a teller and the customer; however the customer can perform virtually any transaction that a teller normally would, in real time. Fully automated kiosks in the branch eliminate the interaction of the teller and customer, and allow the staff to focus on more value-added activities. In remote environments fully automated kiosks can add convenience for customers so they do not have to come into the branch.
Having reviewed the options, you can begin to determine the best approach for your financial institution. There are three important questions that will help you to get started:
- Are we focused on operating strictly within a retail banking environment?
- Are we trying to capture up-sell and cross-sell opportunities?
- What is the most cost-efficient way for our customers to do business?
Furthermore, it is important to understand how these platforms are being used today. The remote teller and fully automated self-service platforms have become popular options for credit unions and small banks. In the case of credit unions, where the members are also partial owners, up-selling and cross-selling aren't a necessary function, and therefore are not a focus in the retail branch. Fully automated self-service solutions help these institutions streamline operations and cut costs by simplifying the staffing model and automating back office activities, while also offering a convenient service to their members.
Teller-assisted self-service has proven to be a good fit for banks that are trying to gain an edge in the competitive world of retail banking. It allows banks to fully exploit their retail environment; and it becomes the focal point of the customer experience by orchestrating in-branch resources to enhance customer service and drive additional revenue for the bank.
No matter which self-service kiosk configuration is the best fit for your company, you can be assured that each offers the fundamental benefits inherent in self-service kiosk technology: reduced operating costs and increased customer satisfaction.
Source Technologies
Founded in 1986, Source Technologies provides integrated solutions for managing financial transactions and other secure business processes. Products include MICR printers and consumables, secure disbursement software, and the groundbreaking concourse™ self-service banking kiosks. Source Technologies has created over $400 million in economic value for customers in the last ten years.
First published on BankersOnline.com 3/13/06
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