Joe Gallagher, SVP of products, NCR Atleos
Members continue to show an increasing preference for self-service options, prompting credit unions across the country to re-evaluate their technology and member service strategies. Institutions are exploring how they can leverage the self-service channel, including ATMs and ITMs, to enhance their branch footprints, introduce new features and functionality, strengthen member experiences and ultimately expand financial access.
The credit unions that properly approach and prioritize self-service channels will be well-positioned to grow and succeed. As plans are made for the future of self-service banking, the following trends should be kept top of mind.
The evolution of branches into member relationship hubs
Common transactions continue to shift to self-service, causing many credit unions to reimagine the branch as an environment conducive to deepening member relationships, effectively cross selling relevant products and services and offering more financial education, such as around borrowing and investments. Such a shift often calls for modifications to the interior branch design – for instance, ensuring that there are comfortable seating areas and implementing gathering spots, such as coffee bars. Creating an inviting atmosphere encourages members to stay longer and engage in deeper, more meaningful conversations with branch staff.
Location, location, location (of ATMs)
The placement of ATMs will become increasingly significant in the coming years. In the developed world, the strategic location of these devices can enable credit unions to attract affluent members. For instance, ATMs situated in areas where consumers live, work or shop are likely to drive traffic and transactions.
Furthermore, the location of self-service devices is essential for expanding financial inclusion. Strategically positioning ATMs in regions that lack physical branches can widen access to cash and other vital financial services for those community members.
The outsourcing of ATM network management
As technology becomes more sophisticated, credit unions are starting to more widely embrace outsourcing partial or complete ATM estate management to trusted service networks and/or ATM utility networks. Such a move offloads the burden of maintenance, troubleshooting, compliance and hardware/software updates to a proven partner. When done right, this approach can enhance efficiencies, save time, reduce costs and complexities and optimize availability in the long run. This outsourcing model is likely to mirror utilities that provide standardized ACH, credit card processing and fraud prevention services.
The broadening of member choice
The evolution of technology is ushering in an influx of new self-service access options, such as cardless access. As the gap between digital and physical touchpoints is bridged, members are presented with more choices than ever before. For example, cardless cash enables members to use their credit union’s mobile banking app, a digital wallet or a one-time code to withdraw cash or execute other transactions at participating ATMs without the presence of a physical debit card. Members can even pre-stage the transaction and pick it up later if using a mobile app, saving notable time. These types of features appeal to a wide range of members, enhancing the member experience and driving loyalty.
These types of features, perhaps most importantly, can also help broaden financial access. Consider the endless use cases: whether smartphone-first tech enthusiasts, rideshare or delivery drivers who get paid by the shift, nonprofits that distribute one-time codes to deliver cash to those in need or the under or unbanked, such functionality can enable easier access to cash.
The transformative power of AI
AI has the potential to make self-service even more intuitive and effective for members and more efficient for credit unions in the coming years. For example, lifelike avatars that replace in-person assistance with incredible performance and accuracy are not too far away. These avatars will even be able to offer tailored financial advice and recommendations. Highly sophisticated security measures based on behavioral analysis algorithms are also coming, which will enable credit unions to safeguard their institutions and members better.
Despite lingering weariness or hesitation around AI, credit union leadership and staff must educate themselves about the technology, identifying how it can fit into their strategy. Fail to do so and risk being left behind.
The upcoming decade in self-service banking will be characterized by a rapid increase in branch transformation, greater utilization of shared networks and outsourced utility models, enhanced flexibility, and advanced technologies such as AI. Those that acknowledge and adapt to these trends will be well-positioned to optimize their self-service banking channels, increasing efficiencies, enhancing member experiences and future-proofing their organizations.
1 thought on “Five self-service banking trends for credit unions to watch ”
Good insight! The cardless ATM transactions are cool. The more CU’s come together and focus and lean upon their shared network(s) and promote growth of CUSO’s, especially in AI, credit unions are well positioned for the future.