Personal Teller Machines Transform Service

CUNA’s E-Scan Newsletter
August 17, 2010 | COMMENTS

Financial institutions are installing innovative technology that offers full service with a personal touch . That means members may soon be talking to a screen at the branch, instead of a person.

While some banks are focusing on systems that augment services at local branches, $2.2 billion-asset Coastal Federal Credit Union, Raleigh, N.C. is using video to replace tellers and changes staffing patterns, reports American Banker.

Coastal Federal has installed video teller systems at 13 of its 19 branches, enabling employees to work on sales rather than processing transactions. "Our branch managers can focus exclusively on their platform staff, the people who make loans and open new accounts," Willard Ross, the credit union's chief retail officer, tells the Banker.

Videoconferencing systems can cut expenses and provide human interaction for transactions such as deposits, check cashing, transfers, and account payments. Some even conduct mortgage originations and provide investment services.

The teller systems operate in a manner similar to ATMs, and they allow consumers to contact a teller through use of a video screen. Coastal Federal reports these benefits as a result of incorporating video to replace tellers:

• A 40% reduction in teller staff;
• Space-saving opportunities, as machines occupy less space than a teller line;
• Employees concentrate on sales as opposed to conducting transactions;
• Ability to offer extended hours;
• Teller staff time is optimized, and the credit union “load balances” staff based on traffic flow at all branches.

Consumers—many of whom watch online videos on YouTube and may have placed video phone calls using Skype or similar technologies—are more readily accepting of the new technology.

Technical quality also has advanced markedly in the last few years, and those who may have rejected two-way video systems five years ago may want to reconsider, says Nicole Sturgill, research director for delivery channels at TowerGroup.

"It's not much of a leap [for consumers] to walk into a branch and not just have video, but to have nice video," notes Sturgill.

Video teller systems may use call centers to meet the needs of far flung members. Remote tellers also may work in coordination with on-site employees to assist in conducting business, which adds to the member experience and fosters staff partnerships.

“This is a way of centralizing your subject-matter experts but making them available to anyone, anywhere,” adds Sturgill.

This article originally appeared in CUNA's E-Scan Newsletter. Reprinted with permission.