Staffing Models for New Branch Designs Meet Your Speakers Jamie L. - - PowerPoint PPT Presentation

Staffing Models for New Branch Designs

Meet Your Speakers

Jamie L. Eads

Director of Retail Staffing Bancography

Jim Pack SVP, Chief Member Service Officer Coastal Credit Union Thomas Garrett Director of Retail LGE Community Credit Union

Trends in Branch Design and Retail Staffing

Jamie L. Eads

Director of Retail Staffing 205-254-3255 jamie@bancography.com www.bancography.com

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:
• Technology and design are starting points for transforming branches but neither is

an end objective; rather both are means of enabling different customer behaviors.

• 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.

• 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 plans

to 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.

• Average FTEs per branch has declined to 5-7 FTEs
• Most institutions are shifting to the Universal Associate methodology
• Dual management has become more common
• 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
• Cross-trained, highly efficient staff member who can assist clients with transaction, sales and service

needs

• Design of the branch is key in creating the right environment
• Technology such as teller cash recyclers are critical
• Develop customer experience training for staff
• Various implementations of the Universal Associate methodology
• Cross-training only
• Full universal staff but without changing branch design or technology
• Complete universal agent model including technology and branch design

Universal Associate

Universal Associates – Part of the smaller branch footprint and member engagement environment is the use

• f 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 Technology

Teller 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. Monitor Keyboard Coin Dispenser Cash Dispenser Drawers (Slotted) Form Pockets (not shown) Trash Receptacle Privacy Screen Electronic Signature Pad

Staffing Analysis

• Hours of operation analysis
• Understanding volumes (peaks and valleys)
• Hub and spoke approach to Saturday hours
• Increase staff efficiency
• Transactions per FTE per hour
• Sales per platform FTE per month
• Loan document centralization
• Automated loan application input
• Small business remote capture

Staffing Analysis

• Increase revenue by increasing sales
• Increasing fee opportunities
• Increasing deposits helps with loan-to-deposit ratio and internal vs external loan funding
• Increasing loans increases interest income
• Strategies encouraging members to use alternate channels
• Electronic-only accounts with punitive fees
• Fee waivers for all-electronic use
• Aggressive marketing of electronic channels
• Addition of branch-based and offsite ATMs
• Sales agents in centralized call center
• Online banking two-way chat
• Mobile deposit and personal pay

PTM’s: The Branch Game Changer

Jim Pack

SVP, Chief Member Service Officer 919-882-6726 jpack@coastal24.com www.COASTAL24.com

Ab About C 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 P Pack – SVP, C Chief M Membe ber S Service O Officer

Joined Coastal in 2008. Experience spanning the areas of sales, lending, customer service, strategy, marketing, reporting and analytics as well as

• perations.

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.

Cor Core St Strategi gic Th Thou

• ught

Branches 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.

Qui uick W ck 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

Te 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

Platfo form

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

Successfu ful 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 Ability Effort/Attitude

Candi dida date Selection

Contin tinued S Succe ccess

Branch Transformation

A s smar arter way ay to b ban ank

Thomas Garrett

Director of Branch Operations LGE Community Credit Union 770-421-2558 thomasg@LGEccu.org www.LGEccu.org

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 2010
• Teller line, greeter station, and member service offices
• 2010 – switch to RTU (Remote Teller Unit) model
• Teller line in central location (teller has ability to work multiple lanes), greeter

station, and member service offices

• 2017 – introduction of PTM model
• Elimination of teller line
• Launch of universal employees
• New branch technology

Why the teller line design needed to be changed

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
• Removes walls and barriers

between members and employees

• Self-serving technology
• PTM can perform the same

transactions as a teller

• Instant member

interaction

Evolution of the front line employee

• Transition all employees to universal employee

status

• Allow for better member relations
• Increase product penetration
• Reduction in staff
• Build skills for upward

movement within the credit union

Branch Technology

PTM & Employee Tablet Member Sign-in Station Member PC Instant Issue Machine Member Service Desk & Coin Machine Digital Marketing Wall

Results

• Enhanced Member Engagement
• Staff reduction
• Reduced by 45%
• Increase in referrals
• Investment
• Insurance
• Improved member satisfaction score

Thank You!