Quick Overview
My son-in-law just bought a new hatchback that adjusts for taller people, but he wasn’t sure how to do it. Instead of troubleshooting over the phone, he drove straight over so we could figure it out together.
Why? Because sometimes, no amount of digital convenience beats hands-on, human support.
The same holds true for financial services. As digital banking surges, many fear that physical branches will fade into irrelevance. But is that really the future?
We sat down with Barb Lowman, President of CUNA Strategic Services, to explore how credit unions and community banks can strike the perfect balance—blending high-tech efficiency with the high-touch service members still crave.
She shared that it’s not just always about technology, but about empowering members with the tools they need, while never losing sight of the compassion, empathy, and personal touch they deserve.
Take the plunge into the full conversation!
Branches Aren’t Dead – They’re Evolving!
How do you envision the role of physical branches evolving over the next decade?
Physical branches will never completely disappear.
Initially, there was a doomsday prediction that all branches would be replaced by technology, but that perspective has shifted.
In the last five to eight years, we’ve seen a better balance between high-tech and high-touch experiences. Older generations may still prefer visiting a branch to resolve issues face-to-face with a member service representative (MSR), while younger generations are leaning toward digital solutions, automation, and self-service – as long as everything runs smoothly. But if something goes wrong or they have a question, they want to engage with someone in person – not just send a text or make a call.
This is where branches are evolving. We see more Interactive Teller Machines (ITMs) being integrated with the branches, combining automation with human support. This shift isn’t just about security—it’s about efficiency.
While some communities still rely on in-person tellers, others need added security, like protective glass. Regardless of the setup, the goal is to be effective—maximizing manpower and using technology to streamline services.
For example, just the other day, I went to the branch to withdraw cash after negotiating a deal with someone to rake my leaves, offering a $50 discount if I paid in cash. So, I still visited the branch—not to speak with a teller, but to use the ATM.
So, physical branches will always be needed, but their need will continue to evolve. The key is finding the right balance between high-tech and high-touch services. Whether members engage via technology, in person, or remotely, branches will need to provide that level of support.
Lobby Management
Queue Smarter, Serve Better
Financial institutions can use Data to Align Staffing for Smarter Service!
What best practices or strategies would you recommend for CUs to align staffing levels with branch demands effectively?
The most crucial component in understanding staffing needs is data. And let me stress this – Data, data, data – Data is king.
Credit unions and community banks without data need to acquire it, and those who already have it need to figure out how to unlock its value. Analyzing and integrating data into decision-making is essential for making informed, strategic choices.
The key is leveraging data to understand how existing members engage with the branch. Who are they? Where do they live and work? When do they prefer visiting a branch versus using digital channels? When do they seek self-service solutions, and when do they require personal assistance?
Beyond the current members, credit unions and community banks must also look ahead to potential future members. Who should they be serving tomorrow? Where do these people live and work? How do they interact with digital banking? Are they choosing banks over community financial institutions due to superior technology?
Understanding both current and future members is critical—not just for branch strategy but also for staffing decisions. Aligning staffing levels with branch demand starts with gathering the right data to make proactive, strategic choices.
Leaders Should Dig Deep for Member Insights
What strategies are financial institutions using to capture and leverage member data effectively?
Understanding members is critical, but it can be a challenge. Some core systems have the capability to capture and mine data, while others lack this functionality.
To truly understand their members, credit unions and community banks should ideally integrate a fintech solution that pulls data from their core system—where transactional data resides—and combines it with data from other sources, like loan origination platforms and digital banking systems.
You can have a data lake or data warehouse that consolidates data from all these sources into a centralized location that provides a 360-degree view of the member—how they transact, their preferences, and behaviors.
In addition, surveys can be layered onto this data. While many people feel overwhelmed by questionnaires, there are simpler ways to gather insights. For example, a staff member could ask quick questions in the branch lobby, such as, “Did you like using this ITM?” or “Would you be open to using different types of technology?” Surveys can also be sent via email, or booths can be set up at annual meetings, offering small incentives for participation.
The key is not just collecting the data but ensuring it feeds into the central repository, where it can be processed, analyzed, and leveraged. The more comprehensive the data, the better it can be queried and used to make informed decisions.
However, community financial institutions can’t rely solely on core system data. A well-defined data strategy is essential, considering how all these components fit into the bigger picture. If all you have is transaction history from a debit or credit card – without deeper transactional insights and additional contextual data – you’re missing the main piece of the puzzle.
Right-Size your Branch for Peak
Performance and Productivity
Understaffed or Overstaffed: Risks of Staffing Missteps
What do you see as the long-term risks for credit unions and community banks that fail to address chronic understaffing or overstaffing in their branches?
Knowing where your service model is headed requires data-driven insights. This information helps identify where staffing is required, preventing both overstaffing – which inflates operational costs — and understaffing, which compromises service quality. Without optimized staffing, you risk creating an unsustainable operational burden.
While members still want to visit branches, credit unions and community banks must know when and how to allocate resources effectively. The key is striking the right balance – avoiding overburdening the budget with excessive salaries while ensuring there’s enough staff to avoid frustrating members with poor service. If long wait times or poor service become a regular issue, member satisfaction drops, and they may take their business elsewhere.
The solution: Strategic planning that is grounded in accurate insights ensures staffing aligns with actual demand.
The solution is strategic planning based on accurate insights, ensuring staffing aligns with actual demand. Many community financial institutions believe they have a good grasp of their needs, but assumptions can be misleading. Different employees may notice different trends at different times. Without concrete data, decision-making is just guesswork—like throwing a dart blindfolded.
Data can help financial institutions determine where members live, work, and worship. By understanding engagement patterns, they can identify service gaps and create solutions to bridge them. If a credit union and community bank isn’t a member’s primary financial institution, fixing these gaps could turn the tide and win their loyalty.
In the full interview, Barb revealed the BIG THREE that are shaping the future of community financial banking – Safe & Strategic AI, Empathetic Collections, and of course, the ever-evolving role of physical branches. So, keep your eyes peeled for more meaty snippets coming your way soon!
Special Thanks to Barb Lowman, President, CUNA Strategic Services for these super actionable and powerful insights.
Barb brings more than two decades of dedicated credit union experience to CSS. She has an extensive track record of delivering technologically advanced products and superior service to help community financial institutions and their members thrive.
