When Introducing Self Service, Keep An Eye On Member Service

By Ron Daly, DigitalMailer

Make it handy.

Make it fast.

Make it easy.

Simple statements, but very important for meeting the expectations of today’s consumer.

With technology continuing to evolve, consumers are growing more demanding of convenience, speed and simplicity. They want the flexibility to bank where and when they like. In response, more financial institutions are introducing self-service kiosks and smart ATMs alongside their mobile banking, remote deposit and online delivery channels. In addition to offering members another way to handle their transactions, lessening teller wait time and providing a quality experience, self-service technology also helps credit unions improve efficiencies and reduce operating expenses. And with razor-thin margins, growing regulatory burdens and continuing economic challenges, that’s critical.

Installing a self-service area seems like a smart move. And it can be … if credit unions make the shift slowly rather than jumping in feet first.

The June 2012 results of a consumer study by Cisco (Cisco IBSG Omnichannel Banking Study) found people in both developed and emerging countries want banking services to be delivered through both virtual and physical channels. While the popularity of virtual banking can’t be discounted, some form of personal interaction is still desired by many – especially with more involved financial issues. Among the study’s findings, respondents globally would not support branches that have significant automation but only limited personal interaction. In fact, 26 percent said they would leave their financial institution if personal attention and advice were completely eliminated at the branch.

Indeed, some members may see the shift to self service as losing some of the quality they expect from their credit union. Others may have lingering concerns about security, privacy and identity theft. And not every member has the same comfort level with virtual transactions. This has been evident at some credit unions, where the introduction of self-service kiosks has been met with frustrated members taking their business to other branches with face-to-face account representatives – or, worse, to other institutions.

But while change can be difficult for some, it’s not a pass for credit unions to remain stagnant, especially when it comes to benefits of self-service devices and applications. Your competition will be making the shift, so it’s no longer a question of if, but when to do it.

Patience and education are key to any significant changes affecting members, and it’s wise to prepare in advance and move thoughtfully in your self-service transition strategy. Other suggestions:

• During the self-service roll-out, position a member advocate in the lobby to guide members through the changes and answer their questions.

• Communicate with members often before, during and after the self-service launch. Let them know what’s happening and when, why you are adding this functionality, and how it will benefit them.

• If employees are moved from the front line to other areas because of the self-service shift, share this information with members. They’ll appreciate knowing their favorite representative is still part of the credit union.

• Include your self-service delivery channels in your overall brand strategy, making the “look and feel” the same whether it’s an in-branch desktop terminal, branch kiosk, remote face to face, or mobile device.

• Ask for member comments using outlets such as email surveys, suggestion boxes and voice mailboxes. This information can provide important feedback not only on the self-service launch, but also on your credit union’s overall member service practices.

As more consumers embrace the convenience, speed and ease of self-service technology (think gas station pumps and grocery store checkout lanes), your members will come to expect similar benefits through self-service banking. The timing may be right to make the shift; success comes from a well-planned launch strategy designed to manage member expectations for good service – virtual, face-to-face, online or at the teller window.