Universal Banker… Today`s Teller

Universal Banker…
Today’s Teller
Susan Eno – President/CEO Citizens National Bank
John Hyche – SVP/Principal, LEVEL5
Citizens National Bank of Cheboygan
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Total assets = $271 million
8 branches
76 employees
0.66% ROA, 7.50% ROE
7% asset growth
8.7% capital ratio
Susan Eno
President / CEO
Citizens National Bank
[email protected]
231-627-7111
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LEVEL5
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Strategic Consulting
Real Estate
Integrated Design
Construction Management
Branding
John Hyche
SVP / Principal
LEVEL5
[email protected]
678-504-6002
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Today’s Topics
 Changes in Banking Habits
 Service at a Premium
 The Universal Banker
 Branch Environment
 Change Management
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Who’s in the Room?
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Change
“The times they are a-changing’”
– Bob Dylan, 1964
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Source: FMSI 2015 Teller Line Study
Population per Branch
• Competitive intensity is magnified with fewer people per branch.
• Banks much take each customer relationship deeper to achieve
branch profitability.
• A more sales-centric environment is needed to support this
requirement.
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Source: FMSI 2015 Teller Line Study
Teller Transaction Volumes
• In-branch transactions decline due to increases in remote,
online, and mobile transactions.
• Combined with fewer people per branch, this emphasizes
the need to leverage each customer relationship to the
fullest.
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Branches Remain Relevant
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Service is at a Premium
Milburn Drysdale and Jane
Hathaway – the epitome of
personal service
Fewer customers per branch
and fewer branch visits will
amplify the importance of
deep relationships
Service is defined by the
recipient, not the provider
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What Do You Do?
 Few people per branch and customers visit the branch
less frequently.
 Customers who visit the branch do so because they
perceive value in the interaction versus other channels.
 How do you engage customers under these new
circumstances?
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Universal Banker
 Reduced transactions require rethinking in-branch roles
 By consolidating functions, flexibility, productivity and
efficiency can be improved
 Universal bankers handle 95% of customer requests
 Greet customers
 Transactions (teller pod)
 Simple services (teller pod or work station)
 New accounts (work station or office)
 Loan applications
 Consumers expect Universal Bankers to be knowledgeable
about products, services, and technology
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Universal Banker
Teller
Teacher
Greeter
Adviser
Lender
New Accounts
Listener
Coach
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CNB’s Experience
 What was the “wake up” call?
 Lobby traffic and branch transactions decline
 New accounts reps in offices without customers
 Tellers at the teller line without customers
 Trade publications discuss Universal Bankers
 Stopped replacing retirees
 Changed training: tellers become CSRs
 What are CNB goals?
 Boost efficiency
 Provide higher level of customer service
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Transaction Cost by Channel
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Channel Preferences
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Problem Resolution
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About the Branch, not the Building
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It’s Not a Trend – Decisions about how to reach and serve your
audience must take a long-term view supported by a business case.
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It’s About Engagement – In-branch interactions involve “big ticket”
items – sales and problem resolution. Be prepared to engage the
customers quickly and professionally.
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Focus on Culture –Facilities should facilitate the conduct of the
businesses they house. Design from the inside out.
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Develop the Business Case – Develop of a robust business case to
support the investment.
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It’s Your Model, not Theirs – Community banks are adding branches,
driven by market opportunities and guided by the principles described
above.
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CNB’s Experience
 How does CNB hire and train Universal Bankers?
 Hiring higher level competencies
 Asking candidates how they bank
 What services do you use?
 ABA certification program
 Better employee retention and satisfaction
 How does CNB compensate Universal Bankers?
 Higher pay but fewer employees
 What do Universal Bankers do?
 Everything but mortgages and commercial loans
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About the Building, Driven by Market
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Size is Shrinking – Size (and cost) declines with transaction volumes.
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Technology is Increasing – Technology changes at a rapid pace.
• “Technology bars” becoming passé.
• Cash dispensers and recyclers serve several purposes.
• Digital signage will remain and grow in prominence.
• Two-way video connects with subject matter experts.
• ITMs or VTMs real value depends on scale.
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Universal Bankers – Engage customers by handling almost any issue.
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Community Connection – Branches are designed with their communities
and audience in mind. Community imagery reinforces the connection.
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Flexible Space – This offers the ability to change as needs change,
creates better security, and makes a better impression on customers
and employees.
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Dialog Teller Station
Monitor
Keyboard
Coin Dispenser
Privacy Screen
Electronic Signature Pad
Drawers (Slotted for work)
Form Pockets (not shown)
Trash Receptacle
Cash Dispenser
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Dialog Delivery
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Branch of the Future
Cornerstone Branch – Large format facility, universal
bankers, subject matter experts, other amenities
Community Branch – Sales-focused, universal bankers,
technology, automation and ability to schedule subjectmatter experts
Micro Branch – Transaction focused, few employees,
heavy technology, automation and branding
Self-Service Branch – Fully automated, heavily branded
and no employees
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4,900 SF
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Projects
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Community Branch
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Community Branch
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Community Branch
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Micro Branch
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Micro Branch
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Micro Branch
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CNB’s Experience
 How is CNB implementing Universal Bankers?
 New branch in a new market was prototype
 At main office, replacing teller line with sit-down stations
 What technology is in the new environment?
 Customers expect more technology
 Cash recyclers boost efficiency
 Switch to teller capture
 What is the desired customer experience?
 Reinforce service culture – it’s what sets the Bank apart
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Change
“A journey of a thousand miles
begins with a single step.”
– Laozi, 570 bc
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CNB’s Experience
 Were there any bumps along the way?
 Board relationships
 Tough on long-term employees who struggle with
change
 Cost justification must be demonstrated
 Customers relationships and expectations
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Questions
or
Comments?
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