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Staffing Models for New Branch Designs
Meet Your Speakers
Jamie L. EadsDirector of Retail Staffing
Bancography
Jim PackSVP, Chief Member Service Officer
Coastal Credit Union
Thomas Garrett Director of Retail
LGE Community Credit Union
Trends in Branch Design and Retail StaffingJamie L. EadsDirector of Retail Staffing205-254-3255 [email protected]
Bancography
Bancography provides consulting services, software tools and marketing research to financial institutions to support their branch, product and brand positioning strategies.
Bancography offers branch planning, network optimization and retail staffing services in addition to Bancography Plan, our market analysis and branch planning software tool.
Every year Bancography conducts a variety of projects for both credit unions and banks of all sizes throughout the U.S.
Industry Trends• Lobby transactions continue to decrease
• Sales must increase in order for the branch to grow
• Branch operating models are evolving to meet the needs of the changing environment
• Branch operating costs are declining primarily due to reductions in footprint and staffing
Industry Trends• Forty-five percent of consumers visit the branch monthly
• Over two-thirds visit the branch every six months
• Even more than half of Millennials visit the branch monthly
• The branch remains the predominant venue for establishing new accounts
Branch Implications• Fewer branch transactions raise the importance of each member interaction
• Members who visit a branch perceive some level of service not provided by remote channels
• Stagnant cross-sell ratios suggest that branch staff have not “recalibrated” to embrace their role as sales leaders
• The branch staff is center stage in the role as the members’ advisor
• Hiring, training and incentives must consider staff roles as sales/service providers, not transaction agents
• The branch itself should facilitate this role – old, transaction-centric designs will not achieve this
Service Models• Devise the optimal sales and service delivery model:
o Technology and design are starting points for transforming branches but neither is an end objective; rather both are means of enabling different customer behaviors.
o Transforming a branch to a lower cost operating model is a function of reducing personnel costs, not by the blunt elimination of positions but by the reconfiguration of job roles to leverage new technology and design concepts.
o Thus, branch transformations are less a matter of construction and equipment deployment – and more a matter of role definition, processes, client experience training – ALL DRIVEN BY A CHANGE IN CULTURAL MINDSET.
Branch Design Elements• Image enabled ATMs: 80% reported as standard equipment
• Teller cash recyclers: 71% reported are or will use in most or all new branches
• Safe deposit boxes: Only 36% plan to install at new branches. Traditional dual-key vaults remain twice as common as single-key, self-service vaults.
• Video remote tellers: 22% will use at all new branches but 46% have no plansto use this technology
• Universal Associate model: 49% plan integrated teller-MSR workstations in new branches
Impact on Staffing• As the branch environment evolves away from transactions, staffing must and has already
started to evolve.
o Average FTEs per branch has declined to 5-7 FTEs
o Most institutions are shifting to the Universal Associate methodology
o Dual management has become more common
o Teller Supervisors/Branch Operations tasks are being shifted to back-office operations creating less of a need for these jobs
Impact on Staffing• Universal Associate methodology
o Cross-trained, highly efficient staff member who can assist clients with transaction, sales and service needs
o Design of the branch is key in creating the right environmento Technology such as teller cash recyclers are criticalo Develop customer experience training for staff
• Various implementations of the Universal Associate methodologyo Cross-training onlyo Full universal staff but without changing branch design or technologyo Complete universal agent model including technology and branch design
Universal AssociateUniversal Associates – Part of the smaller branch footprint and member engagement environment is the use of universal associates.
These are the well-trained, engaging employees who can handle almost any member issue without the need for assistance from others.
They may refer some things to subject matter experts (mortgages, commercial loans, etc.) but they can handle everything else.
They are usually paid more than a teller, but the value is derived by using fewer employees than in the traditional model.
Teller
Teacher
Greeter
Lender
New Accounts
Listener
Coach
Adviser
Universal Associate TechnologyTeller Pods – The Universal Associate’s success depends on the ability to engage members in conversations about their financial lives.
Dialog Delivery automates the “mundane” aspects of teller transactions, allowing the Universal Associate to spend more time talking with the member to discover needs.
This is NOT self service; rather, it is more personal service than experienced in a typical teller line.
MonitorKeyboard
Coin Dispenser
Cash Dispenser
Drawers (Slotted)
Form Pockets (not shown)
Trash Receptacle
Privacy Screen
Electronic Signature Pad
Staffing Analysis• Hours of operation analysis
o Understanding volumes (peaks and valleys)o Hub and spoke approach to Saturday hours
• Increase staff efficiencyo Transactions per FTE per hour o Sales per platform FTE per montho Loan document centralizationo Automated loan application inputo Small business remote capture
Staffing Analysis• Increase revenue by increasing sales
o Increasing fee opportunities o Increasing deposits helps with loan-to-deposit ratio and internal vs external loan fundingo Increasing loans increases interest income
• Strategies encouraging members to use alternate channelso Electronic-only accounts with punitive feeso Fee waivers for all-electronic useo Aggressive marketing of electronic channelso Addition of branch-based and offsite ATMso Sales agents in centralized call centero Online banking two-way chato Mobile deposit and personal pay
About Coastal
• Headquartered in Raleigh, NC
• $3.05B in assets; 22 branches in the 16 counties surrounding the Raleigh, Durham, Chapel Hill Research Triangle Park market of North Carolina
• Chartered in 1967 to serve employees of IBM
• Today we serve 1,700+ employers & associations
• 250,000 + members
• Key ratios as of Date 6/30/18: Net worth 10.98%, ROA 1.25%
• Coastal become the first in the world to fully centralize our tellers in 2008
Jim Pack – SVP, Chief Member Service Officer
Joined Coastal in 2008. Experience spanning the areas of sales, lending, customer service, strategy, marketing, reporting and analytics as well as operations.Three time NAFCU Innovation awards judge, Currently servicing on the Board of MY CU Services, Carolina Credit Union Services and the Cooperative Council of North Carolina. Jim also chair’s the NCR ITM user group.
Core Strategic ThoughtBranches underperform because of an outdated model of staffing tellers in branch. This method creates high labor costs due to increased staffing, turnover, limited hours, shuffling due to PTO, and inconsistent service. Coastal
management believed that centralizing our teller services with the PTM was key to unlocking branch potential.
Quick Wins• Reduced teller staff by 40%
• Increased hours by 86%
• Reduced number of branch managers by 50%
• Decreased average transaction time by 1 minute
• Queuing lines disappeared
• Ability to open a 200 square foot branch location
Member Reaction
Teller
Today we look to hire sophisticated individuals with strong communication skills who are comfortable on camera, must be team players, able to multi-task and have strong PC Skills.
• Centralized• No cash handling• Empowered to make decisions• Focus on service, building rapport
Platform
The job of our Platform Team is to provide “Quantifiable Member Benefits”: save money, make money, lend money, save time and provide convenience.
• No cash management or audit tasks• Focus on deposit and loan growth• Outbound calling• Lobby Management• Coaching and Development of Team (Managers)
Talent
Recurring patterns of thought, feeling or behavior that can be productively applied.
Three Kinds of Talent:• Striving• Thinking• Relating
Source: First Break All the Rules by Coffman and Buckingham
Successful Interview
• Identify critical job requirements• Develop interview questions that compel the candidate to speak
about job-related knowledge, skills, abilities and accomplishments.• Evaluate candidate's answers against the critical job requirements and
your best performers responses.
Skills/Knowledge/Experience
Cognitive AbilityEffort/Attitude
Candidate Selection
Continued Success
Branch TransformationA smarter way to bank
Thomas GarrettDirector of Branch OperationsLGE Community Credit [email protected]
LGE Community Credit Union
Asset size : $1.3 billion
Members : 108,000
Employees : 230
Branches : 11
Communities served: greater metropolitan Atlanta area
Agenda
• History of branch design• Evolution of frontline staff• The new branch model• New branch technologies
A Brief History
• Traditional branch model prior to 2010o Teller line, greeter station, and member service offices
• 2010 – switch to RTU (Remote Teller Unit) modelo Teller line in central location (teller has ability to work multiple lanes), greeter
station, and member service offices
• 2017 – introduction of PTM modelo Elimination of teller lineo Launch of universal employeesoNew branch technology
Why the teller line design needed to be changed
0
200000
400000
600000
800000
1000000
1200000
In-Branch Transactions
Decline of in-branch transactions
2010 2011 2012 2013 2014 2015 2016 2017
New branch design: PTM Model• Open Concept
o Removes walls and barriers between members and employees
• Self-serving technologyo PTM can perform the same
transactions as a teller
• Instant member interaction
Evolution of the front line employee• Transition all employees to universal employee
statuso Allow for better member relationso Increase product penetrationo Reduction in staffo Build skills for upward
movement within the credit union
Branch TechnologyPTM & Employee Tablet
Member Sign-in Station
Member PC
Instant Issue MachineMember Service Desk & Coin
Machine
Digital Marketing Wall
Results
• Enhanced Member Engagement
• Staff reductionoReduced by 45%
• Increase in referrals o Investmento Insurance
• Improved member satisfaction score
Thank You!
