As the industry continues to evolve, technology has become a crucial element of the banking experience. With branch traffic declining, and younger demographics demanding more out of their financial services, many Financial Institutions (FIs) are investing in Branch Transformation Solutions. However, it can be difficult to know exactly what will work for you. FIs are facing more options than ever before, and when implementing new technology, want to maximize on the investments. Additionally, you must ensure that Branch Transformation initiatives will be well-received by customers. Ultimately, the branch should be designed to serve consumers in the way they want to be served, and having the right strategy in place helps achieve this. One strategy gaining traction in today’s ever-changing banking environment is the self-service model.
What Does “Self-Service” Banking Look Like?
A growing number of tech-savvy consumers are now comfortable performing banking transactions that fall outside of the traditional brick-and-mortal branch model. For example, consumers can conduct financial transactions via computers, smartphones, or ATMs, at any hour of the day. It is possible, and increasingly common, to apply for a loan online, resolve an account issue by chatting via text with a customer service representative, make a check deposit via remote capture, or connect with a video concierge at an intelligent ATM. Self-service technologies at the branch deliver a wide array of perks to both customers and bank personnel. Cost savings, strengthened customer relationships, and the benefits of choice are just a few of these advantages.
According to a study by Accenture, a leading global professional services company, “banks employ approximately 514,000 tellers in the United States, and pay them an average yearly wage of $25,760.” That’s an annual industry spend of more than $13 billion! In addition to employing tellers, there’s also the high costs associated with building and maintaining branches, which allocates up to 50 percent of space to teller-related activities. Expenses inside the branch are high, but are the expenses justified in terms of the value being delivered? According to the numbers, the answer is no. Accenture’s study states, “It is up to 95 percent cheaper to process deposits digitally than through a teller, and the cost of online and mobile payments is 65 percent lower than payment via physical checks.” The bottom line is self-service technologies free up valuable labor and branch space, significantly impacting the amount of money saved. Savings that can then be invested into enhancing your customer relationships.
Strengthened Customer Relationships
Customer loyalty is critical to a Financial Institution’s success. When it comes to implementing self-service technologies, it is imperative to focus on improving those customer relationships in the process. Today’s consumers want convenience, first and foremost. Additionally, FIs need to rethink their approach to customer service, and create personalized touchpoints across all channels, using Branch Transformation strategies. With the help of self-service solutions like intelligent ATMs, banks can offer customers greater products and services, with the added benefit of extended hours. FIs with high numbers of customers engaged via self-service are often among those with the highest rates of loyalty and customer satisfaction. Furthermore, satisfied customers are less likely to take their banking business elsewhere! The key to happy customers is to provide a banking experience that exceeds their expectations. This can be done by giving consumers the benefits of choice.
Benefits of Choice
As technology forms a new age of consumer banking, there are many self-service solutions available in and out of the branch. Consumers have the options of banking online, using mobile devices, visiting an intelligent ATM, and so much more. With all of the self-service technologies available, it is important to remember that the human touch still matters. Despite the recent rise in mobile and online banking, studies indicate that the average consumer still prefers individual, in-person assistance when performing sophisticated transactions, or making intelligent and informed financial decisions. The branch may not be necessary for all banking transactions, but consumers still want to be able to visit for certain things. This is where enhancing the customer experience with an assisted self-service model becomes beneficial.
There is a type of technology available today that achieves cost savings, strengthens customer relationships, and offers the benefits of choice… The MX8800! Hyosung’s MX8800 is a flexible, compatible, and scalable self-service banking kiosk that creates an unmatched experience for its users. Unlike traditional ATMs, the MX8800 offers ten additional types of transaction options, including loan payment processing and cash withdrawals to upwards of a thousand dollars in ANY denomination. One of the greatest features of the MX8800 is its assisted self-service capability. Customers have the ability to perform transactions completely on their own, or request assistance if needed. Help comes either through a video representative, or a Universal Teller within the branch. Maximize the value of your branch by offering solutions customers want. With any Branch Transformation, never underestimate the power of the (assisted) self-service model!
Key Customer Benefits of the MX8800
- Superior Choices: Customers can perform transactions independently, or be assisted by video or a teller in branch.
- Increased Cost Savings: As branch traffic continues to decrease, the 8800 helps maximize profitability by reducing branch overhead, and automating teller transactions.
- Reduced Operational Costs: One Teller can manage up to 6 machines.
- Fully Customized Integration: Direct integration with Core System, enabling customers to do 85% of teller transactions themselves.
- Greater Efficiency: No more dual-key entry, saving time and reducing the chance for errors.
- Extended Service Hours: Available 24/7, not just during business hours.