Operational Efficiency in Banking: 3 Foolproof Strategies Every FI Needs To Know
In a nutshell (TL;DR) 🥥 Operational efficiency in banking is about optimizing people, processes, and technology to do more with less. The result? Reducing costs, improving customer and employee satisfaction, and boosting revenue. Improving efficiency isn’t just about cutting expenses; it’s about redesigning workflows, leveraging data and digital tools and approaches (like bank appointment scheduling, queue management, video banking, and hybrid channels), and focusing on both customer and staff needs to outperform competitors and support growth. Key Takeaways: Operational Efficiency in Banking 1. Efficiency = Better Outcomes for Everyone. Operational efficiency directly impacts customer satisfaction, employee engagement, and revenue growth. Banks that improve efficiency deliver faster, more consistent service with fewer errors, strengthening loyalty and competitive positioning. 2. Improve Efficiency with Three Core Strategies. Channel Optimization: Balance digital and in‑branch experiences so customers can choose the way they interact — e.g., digital transactions for routine tasks, advisors for complex interactions, and hybrid (video) options where appropriate. Staff Efficiency: Well-equipped employees save time on manual tasks and can focus on high-value interactions. Better Data: Collecting and analyzing operational data (appointment flow, branch traffic, customer behavior) helps spot bottlenecks, optimize staffing, and improve service outcomes. 3. Real examples show tangible Results.Credit unions like CU SoCal and Kawartha CU demonstrate how bank appointment scheduling tools and data insights reduce no-shows, improve customer satisfaction, increase loan conversions, and deliver measurable operational improvements. 4. Digital tools & automation are game changers.Appointment management, queue tools, video banking, and analytics reduce manual processes, improve customer journeys, and free staff for more strategic work. 5. Operational efficiency is strategic (not just tactical). Efficiency isn’t only about short-term cost cutting; it builds a scalable operation that enhances service, supports hybrid banking, and drives deposit and loan growth over time. Read on for the full overview from the experts on operational efficiency: Coconut Software. A recent survey of more than 150 bank executives found that increasing operational efficiency is the top strategic goal of mid-market banks — and it’s no wonder why. Efficient banks have lower cost-to-income ratios (CIR) and higher return on assets (ROA). Bank efficiency ratios are one of the most important measures of success in the industry, helping financial institutions (FIs) become more resilient, competitive, and profitable. McKinsey research found that banks that take aggressive measures to improve efficiency can reduce costs by 20 to 40%. So what can a bank do in order to achieve operational excellence? In this article, we’ll talk more about what operational efficiency means, why it’s crucial, plus we’ll share three proven strategies to increase your bank’s operational efficiency. The 2025 Retail Banking Trends Report Learn where to spend—and where to save—for a profitable future. Access The Report What is Operational Efficiency in Banking? At its core, operational efficiency is about optimizing the many processes and systems within a bank to maximize productivity and revenue, while also minimizing costs and reducing errors. It encompasses everything from channels, to customers, to staffing, to technology adoption. This pursuit of efficiency plays a key role in creating a positive customer experience that keeps clients coming back, which in turn, has a huge effect on a bank’s revenue and profit margins. An efficiently-run bank can process transactions quickly, reduce the likelihood of errors, and offer customers a hassle-free experience, from simple account inquiries to complex financial transactions. It also allows banks to allocate resources more effectively, so they have the means to invest in new technologies, improve customer service, and meet the latest security standards. 3 Reasons Operational Efficiency Should Be A Top Priority For Banks Why is it important to focus on improving operational efficiency in banks? Because it’s directly tied to customer satisfaction, employee satisfaction, and overall revenue outcomes. Let’s have a look at each in turn. Customer Satisfaction Today’s customers want banks to do more than just open accounts and accept deposits. They want their banks to be active partners in helping them improve every aspect of their financial health. They want personalization, control, and convenience. In fact, one study found that 79% of financial customers will spend more on convenience. Employee Satisfaction When employees have to work on outdated software and deal with broken, inefficient processes, they become overburdened and disengaged. Since just 50% of banking employees are highly engaged and 35% are a retention risk, it is a crucial time for FIs to foster employee engagement and loyalty. It’s incredibly difficult to produce happy customers without happy employees, so employee satisfaction is doubly worth investing in. Revenue Outcomes Happy customers and employees fuel bottomline growth for FIs. According to one recent survey, 92% of consumers say quality customer service is the most important factor when deciding where to open a bank account. Another 63% of consumers say they’re unlikely to leave a bank that offers great customer service, and 78% say they’ll return for similar services. Those satisfied customers are more likely to book appointments, purchase more services, and stick around for the long haul, which has an obvious impact on revenue outcomes. Ultimately, operational efficiency helps banks meet the ever-evolving expectations of customers and employees, while also helping the institution grow. 3 Tips for Improving Operational Efficiency in Banking Many FIs see digital transformation as the ultimate path to operational efficiency. And while new technologies certainly can help banks improve overall outcomes, they aren’t the only requirement. In fact, in some cases, use of technology can also introduce new issues, especially if investments in technology make human representatives less available. In fact, customer experience and customer trust have both taken a dip since digital banking became the new normal. Clearly, banks must take a more well-rounded approach to operational efficiency in 2024. For better results, banks should implement the following three strategies. 1. Channel Optimization Digital banking experiences can help streamline many customer activities, but there are still some instances where customers need face-to-face interaction with an advisor. Banking surveys repeatedly find that hybrid experiences outperform digital-only or in-person-only experiences. On the same note, a recent Deloitte survey found that consumers like using digital channels for transactional activities, but they still prefer visiting a branch for
8 Signs it’s Time To Replace Your Appointment Scheduling Software
In a nutshell 🥥 Branches are evolving from full-service hubs into advice centers, so banks need appointment scheduling software that actually works for financial institutions—not generic booking tools. Look out for red flags like clunky admin controls, disappearing customer support, poor analytics, and weak integrations that hurt efficiency and revenue. Your software should make scheduling *and* rescheduling easy for clients, reduce no-shows, support video banking with co-browsing and e-signatures, and provide actionable insights for high-value appointments. If it’s not built specifically for financial services, it’s holding your branch back from delivering better advice, loyalty, and growth. Is your branch appointment software holding you back? Here are the signs. Today’s branches are transforming—while they were once places to handle every single banking activity, they’re rapidly becoming advice centers, where customers and members often only show up in person to receive personalized advice about matters like loans and investments. Banks and credit unions that make it easier for customers to receive advice are proven to attract more customers, sell more products, improve long-term loyalty, and boost experience scores. Elevating your branches into well-run advice centers requires the right technology in place for everything to go smoothly, or else your customer experience could suffer. But not all appointment schedulers are created equal. If your current appointment scheduling software is less-than-ideal, there are some common red flags you’ve probably experienced. Maybe your admins are consistently submitting support tickets to make simple changes … and those tickets take forever to get responses? Or your software is cumbersome for frontline staff, and it’s leading to less job satisfaction and higher staff turnover? Or perhaps you’re losing revenue because you don’t have the data you need to optimize your operations? If you’re feeling doubtful that your current appointment scheduler is the right investment, here are eight signs you may need to start considering other appointment scheduling software options. Why Fls Choose Coconut Click here 1. Your administrators can’t perform simple tasks without sending in support tickets that take weeks to resolve. If you have to chase down an IT expert to make changes to your appointment scheduler’s backend, it’s a red flag. Here are some things your admins should be able to do instantly and on their own: Reassign an appointment to another advisor when someone is out of office Assign floating staff to different branch locations Easily change which services are assigned to which advisors Change which service an appointment is for Assign a language option to a staff member Add hybrid users who have multiple roles within your organization Add custom questions for customers to the scheduling process List required information so members come to appointments prepared Apply changes across all branches, not one at a time Bottom line: You should be able to customize your appointment scheduling software to the needs of your organization without waiting on your vendor’s customer support team for help. Often, financial institutions report feeling supported by their appointment scheduling vendors during the onboarding process. But as soon as that process is over, many of them feel like they’re on their own. Here are some signs your customer support could improve: 2. The vendor’s customer support ended after initial onboarding. You don’t have access to a Help Center where you can troubleshoot on a self-serve basis You don’t have a dedicated customer support manager you can contact directly You’re seeing delayed response times on support tickets after onboarding is over Outreach from your vendor is more about new products than how to get the most out of your existing investment with them You’re not getting any guidance on how to interpret platform data and analytics Bottom Line: Your appointment scheduling software vendor should be a partner who’s just as invested in your organizational goals as you are. 3. You can’t track where your high-value appointments are coming from. If your appointment scheduling software doesn’t come with easy-to-digest analytics that tell you where your high-value appointments are coming from, you’re not getting the most out of it. When you understand how your customers prefer to engage (for example, via what channels, locations, times of day), you can tailor your operations to cater to those preferences. But you can’t improve what you don’t measure. Here are the insights you should expect to get from your appointment scheduler: The percentage of walk-ins that convert to high-value appointments Your locations, times of day, and days of the week with the highest traffic (which will tell you how to staff your branches) Your most efficient and effective staff members Your most popular services The outcomes of your video appointments How many times customers meet with advisors before they convert Granular comparison metrics by branch Bottom Line: Appointment scheduling software shouldn’t only help you schedule appointments—it should help you identify how to get more value from advisor conversations. 4. You can’t create your own custom BI reports or alerts. When branch managers want to dive deeper and communicate metrics with staff, they should be able to customize their reports based on what they need with business intelligence (BI) reports. When your appointment scheduling software is connected to multiple channels across several branches, your reporting needs will likely become more complex than what basic analytics can demonstrate. Custom reports and alerts should allow you to: Create your own dashboards Schedule reports to go out to branch managers Take action if your wait time exceeds a certain time in any given branch Bottom line: You shouldn’t need to sacrifice on report customization and readability to get the in-depth analytics you need to increase high-value conversations and appointment efficiency. 5. Your appointment scheduling software doesn’t integrate well with your other software. Appointments happen because of the small interactions that happen around them. Your branch operations likely depend on calendar syncing, walk-ins, call centers, video conferencing, email, etc.—all necessary tools for selling high-value products. Whether people are interacting with your website, call center, digital banking platform, or the branch itself, your appointment scheduling software should act as a hub
Hybrid Banking Examples: 6 Real Stories From High Growth Banks & Credit Unions
In a nutshell 🥥 Hybrid banking blends the convenience of digital tools with the personal touch of in-person services, making banking easier and more efficient for customers. Top financial institutions are using this model to cut wait times, boost loan growth, and give staff more flexibility. It’s the sweet spot for staying competitive and meeting the diverse needs of today’s banking consumers. Today, financial institutions (FIs) are adopting digital banking tools at an accelerated pace. However, hybrid banking remains the gold standard for meeting the diverse needs of customers and members. Case in point: In one study, 78% of Americans say they prefer to bank via mobile app or website, while a significant portion of adults in the U.S. say they prefer to bank in person (29%). In fact, younger generations are even more likely to prefer a combination of digital and in-person banking, an 82% of all consumers say that having a branch nearby is “extremely or very important.” Clearly, digital banking and traditional brick-and-mortar banking still play a key role in the world of modern financial services. So how can financial institutions (FIs) bridge the gap between the two models? By learning from the industry’s top hybrid banking examples. What is Hybrid Banking? Hybrid banking is a service model that combines the convenience and speed of digital banking with the personalized support and trust of in-branch experiences. It allows customers to move seamlessly between online, mobile, and in-person channels depending on their needs—whether that’s using self-service tools for simple tasks or meeting face-to-face with advisors for more complex financial decisions. Hybrid banking ensures that no matter how a customer chooses to engage, they receive a consistent, integrated experience that balances high-tech efficiency with human connection. This approach not only improves customer satisfaction and accessibility but also helps financial institutions optimize resources, increase staff flexibility, and drive growth in a competitive market. But hybrid banking doesn’t just benefit customers and members. By giving employees a more flexible way to work, it is also proven to increase staff well-being, productivity, and retention. Ultimately, it’s a win-win-win for customers, staff, and financial institutions as a whole. 6 Hybrid Banking Examples from Leading Banks and Credit Unions The most successful financial institutions are those that embrace hybrid banking—not just in theory, but through thoughtful, customer-first execution. The following examples highlight how leading banks and credit unions are blending digital innovation with human support to create more efficient, personalized, and scalable banking experiences. Yolo FCU: Reducing Wait Times with Teller Express Lanes Efficiency and staff optimization play a crucial role in boosting customer satisfaction, loyalty, and financial growth. Yolo FCU demonstrates this by allowing members to schedule quick online appointments for routine transactions. The Teller Express Lanes let customers easily complete tasks like withdrawals, deposits, wire transfers, savings bond purchases, and account maintenance. By booking appointments in advance, members secure a spot in the queue, minimizing wait times once they arrive at the branch. This also benefits staff, who receive notifications ahead of time and can prepare accordingly, reducing overall visit times. The success of this approach is clear. Many members report they’ll never wait in line again. Additionally, around 25% of financial institutions have found that pre-scheduled appointments lead to better closure rates, shorter wait times, and higher customer satisfaction. National Bank: A Leading Example of Hybrid Banking National Bank set out to modernize its appointment experience as clients increasingly preferred digital convenience and remote access. Its previous branch-focused process created friction, making it harder for clients to quickly reach the right advisor. By implementing Coconut Software, National Bank introduced a fully integrated hybrid booking system that lets clients book remote or in-person appointments faster, skip unnecessary steps, and connect with experts across the country—regardless of branch. The results were immediate: 92% client satisfaction, a 3x increase in remote appointments, and virtual bookings now 4x faster than in-person. The system also improved staff flexibility, boosted operational efficiency, and strengthened National Bank’s commitment to delivering simple, accessible, client-first banking. Teachers Federal Credit Union: Leveraging the Power of Video Banking Though the COVID-19 lockdowns are behind us, many customers still prefer to connect with their banks via video. In fact, 35% of bank customers say they prefer video banking over in-person meetings. However, only 35% of bank customers of financial institutions have invested in video banking options, leaving those that have embraced the trend with a significant competitive edge. Teachers Federal Credit Union took advantage of this demand by offering video banking to its members. To help customers make the most of this service, they launched a marketing campaign and created an FAQ page explaining how to use video banking. Their investment paid off. The credit union expanded its reach and saw higher conversion rates. For example, one potential member accidentally joined a video call, stayed for 30 minutes, and ultimately took out an auto loan. “I don’t believe that would have happened if they hadn’t been able to see each other face-to-face,” said Austin Hopkins, AVP of Premier and Relationship Sales at Teachers Federal Credit Union. Credit Union of Southern California: Empowering Customers with Self-Serve Appointment Scheduling Long wait times don’t just frustrate customers—they also lead to staff burnout, reduced member satisfaction, and loss of potential revenue. Fortunately, queue management tools can change all that, helping to reduce appointment lengths by up to 75%. Credit Union of Southern California (CU SoCal) experienced these benefits when it adopted self-serve appointment scheduling, which allows customers to pre-schedule appointments with an advisor before they come into the branch. The tool helped customers have a faster, more streamlined way to speak to an advisor and get the help they needed. As a result, CU SoCal reduced meeting times by 38% and increased loan pull-through rates by 12%. The strategy was so successful that Aaron Young, CU SoCal’s SVP of Retail and Branch Operations said, “We’re increasingly moving walk-ins to high-value appointments and building that behavior because we know appointments convert.” US Bank: Providing DIY and “Do It Together” Tools Today’s customers want options. They may use self-serve tools for simple tasks like withdrawing money or checking a balance,
How to Increase Loan Growth in Banks: A Quickstart Guide
In a nutshell 🥥 Institutions figuring our how to increase bank loans can boost growth by using appointment scheduling tools that connect high-intent customers with the right experts at the right time. These tools reduce missed opportunities, improve staff preparedness, and provide data to optimize operations and marketing. The impact is clear: the right banking software can result in an 8.5% increase in loan pull-through rates, $1.6M in added profit over three years, and shorter appointment times. Credit unions like CU SoCal and Kemba have seen double-digit loan growth after implementation. https://www.coconutsoftware.com/wp-content/uploads/2025/01/Video-Loan-Growth.mp4 Access the full study now How to Increase Lending in Banks: A Priority for Profit-First Banks Loan Growth is consistently a top priority for banks and credit unions. There are many foundational strategies that banks employ to stimulate increased loan growth—from promotional offers to marketing campaigns. But there’s more work to do, and more technological solutions to implement, in order for financial institutions to drive lending opportunities with new and existing customers. Below, we’ll unpack 3 strategies for implementing solutions in your bank or credit union that can drive loan growth, the data to back it from a Forrester study, and examples of the success that financial institutions are seeing. 1. Capture High-Intent Customers at the Right Moment Loan opportunities often come down to timing. When a customer is ready to take action—whether it’s a personal loan, auto financing, or a mortgage—you need to be ready too. That means having the right expert available in the right channel to convert that intent into action. With appointment scheduling tools, you can: Make it easy for customers to book time with a loan expert: This can be offered directly through your website, online banking platform, mobile app, or in-branch kiosks. Minimize lost opportunities: Route referrals from greeters, tellers, and contact centers to the right specialist quickly. Offer after-hours options: Offer 24/7 scheduling, so customers can book appointments even outside of business hours. Optimize queue management: Send automated confirmations and reminders to reduce no-shows and improve conversion rates. By meeting customers in the moments that matter most, you not only create a better experience but also increase the likelihood that a loan application turns into a funded loan. 2. Empower Your Staff to Become Loan Growth Ambassadors Your team plays a pivotal role in loan growth—but they need the right tools and insights to deliver a seamless and productive customer experience. Appointment scheduling solutions give staff visibility into their day and their customers so they can prepare, personalize, and perform. Key capabilities include: Sending pre-appointment reminders that prompt customers to bring required documentation, reducing unnecessary follow-ups. Giving staff a full view of their daily schedule—who’s coming in, what products they’re interested in, and what their needs are. Collecting relevant customer data during the booking process (either online or via an in-branch queue) to tailor product recommendations and conversations accordingly. With better preparation, your staff can turn every appointment into a meaningful interaction that builds trust and drives results. 3. Leverage Data to Optimize Resources and Maximize Impact Data is one of the most valuable assets in today’s banking landscape. Appointment scheduling tools provide actionable insights that can help you understand demand, manage resources, and measure performance. Here’s how smarter data drives loan growth: Identify peak times, high-demand services, and expert availability to allocate staff more efficiently. Enable staff to serve customers across multiple locations virtually, ensuring better coverage for in-demand loan products. Monitor staff workload and availability to reduce wait times and prevent bottlenecks. Track which calls to action and marketing efforts are generating appointments—and ultimately, loans. This data-driven approach helps you continuously refine your strategy to capture more demand and improve customer satisfaction. Real Loan Growth Results from Financial Institutions Like Yours The impact of appointment scheduling is not just theoretical—it’s backed by real results. According to a Forrester TEI study commissioned by Coconut Software: Loan pull-through rates increased by 8.5%, and mortgage pull-through rates by 1%. Financial institutions saw $1.6 million in additional profit from loans and mortgages over three years. The number of loans and mortgages funded increased by 1,200 and 95, respectively. Staff saved time too, with a 10-minute reduction in appointment handle time. And the results are echoed by Coconut customers: Credit Union of Southern California increased funded loans by 12% after implementing appointment scheduling. “If someone walks in, there’s a 48% chance they’ll apply. But if they book an appointment, they come prepared—and the odds rise by 12%,” says Aaron Young, SVP of Retail Operations. “That gets me excited. It makes me wonder, ‘How do I get more people to use appointments?’” Kemba Credit Union saw a 13% increase in loan production, proving how impactful these solutions can be when aligned with team workflows and customer journeys. Operational Efficiency: The Hidden Engine Behind Loan Growth Improving operational efficiency isn’t just about reducing costs or increasing output—it’s also a powerful way to unlock loan growth. When your internal processes run smoothly, your staff are better positioned to engage customers at the right time, with the right information, and through the right channels. This streamlined experience builds trust and drives more successful loan conversions. Make Access to Experts Effortless One key area of opportunity is simplifying how customers access your loan experts. Whether it’s booking an in-person meeting, a video consultation, or a phone call, offering flexible and convenient options helps reduce friction in the customer journey. When it’s easier to get help, more people follow through. Use Data to Work Smarter, Not Harder Data is another driver of operational efficiency that directly influences loan growth. When institutions have visibility into branch activity, appointment volumes, and staff utilization, they can make smarter decisions—like reallocating staff based on demand, offering virtual support during peak hours, or adjusting marketing efforts to target high-performing channels. These insights allow institutions to respond faster to customer needs and ensure no opportunity goes untapped. Expand Reach with Remote Service Options Finally, remote and hybrid service options—like secure video banking—extend your reach and accessibility. Customers who can’t visit a branch in person can still engage in meaningful loan conversations, without compromising convenience or compliance. That added accessibility removes barriers and
How To Solve For Dreaded Staff Shortages In Banks
In a nutshell 🥥 Bank staff shortages have significant impact on both employees and customers, as well as managers and others in leadership positions who want to equip their staff with everything they need to streamline operational efficiency, support bank deposit growth, and most importantly, provide a winning customer experience. But what can bank leaders do to combat the effects of being short staffed? By implementing smarter technology and using real data to drive staffing decisions, you’ll be equipping your branch staff with all the information, tools, and time they need to best serve your customers. Staff Shortages in Banks: An Ongoing Challenge Staffing shortages are a familiar story for most financial institutions. Picture it: It might be a Saturday morning and customers and members are piling into your branch. They’ve come after a long week of working to make deposits, ask questions about their financial health, and apply for loans for a new car, but there’s one problem—you’re understaffed. Phones are ringing, would-be customers are walking out the door without being seen, advisors are running behind, and frontline tellers are in dire need of a break. This chaotic scene, caused by staff shortage in banks and credit unions, is far too common across financial institutions today. In fact, over the past few years, two-thirds of financial institutions see retaining their staff as a major concern. With the rise of fintechs offering remote work and a highly competitive job market, finding (and hanging onto) the staffing you need can feel almost impossible. “Recent surveys show about half of financial institution staff are considering leaving their jobs, largely due to outdated systems that bog them down with administrative tasks.” – The Financial Brand Bank staff shortages can quickly wear down the employees and advisors, and cause managers and others in leadership positions to feel like they’re grasping at straws. So what can credit unions and banks with staffing shortages *actually* do? The answer lies in embracing banking software tools, improving staff efficiency, and using data judiciously to plan for your branch’s success. Let’s take a look at some of the common pain points associated with bank staff shortage for employees, advisors, and management, and then unpack how they can be improved with the right set of solutions—and better data. Why are There Staffing Shortages in Banks? 4 Financial Industry Challenges A high-performing frontline staff is crucial to any financial institution’s growth. Amazing customer service leads to customer loyalty and retention, which in turn results in more products sold. But when employees exceed their bandwidth due to a bank staff shortage, the whole FI suffers along with them. Banking labor shortages raise many issues for your team, including but not limited to: Staff burnout Staff shortages in banks mean employees and advisors are left with a growing number of customers and members to serve—the lines, wait times, and handle times are longer, and the workload is tripled. This ratio also contributes to negative customer experiences as they aren’t given the time and attention they deserve. These issues also contribute to decreased employee satisfaction and high employee turnover numbers. For instance, as reported in 2024, “52 percent of managers and 49 percent of staff are contemplating leaving their jobs within the next 12 months due to low job satisfaction.” Tellers, advisors, and floating staff are burnt out, and retaining talent is getting even trickier. No prep time When a branch is understaffed, employees often have no time to prepare for customer conversations, which leads to longer handle times, longer queues, and a rushed experience for the customer or member. Constant schedule changes When employees are sparse, those who are available to work face a lot of unpredictability and inflexibility with their schedule. Requests for vacation days may be declined more frequently, and team members have to fill in for sick coworkers more often. To make matters worse, if the branch they’re working for has no appointment scheduling software in place, employees who are filling in have no clear view of the day ahead, leaving them feeling underprepared and overwhelmed. Lower quality of service Overworked employees struggle to deliver high-quality, personalized service that can set a bank apart from its competitors. If staff aren’t equipped with a central system to store and access customer information, this problem is further exacerbated. Staff may need to spend ample time navigating between different tools to find customer details they need—i.e. who the customer or member has spoken to recently, products they already have, and new product recommendations that align with their needs can be difficult to pin down before a visit, especially when time is already short. This type of experience leaves the client feeling slighted and not prioritized. How can banks improve employee productivity? DYK? If you’re wondering how to improve bank staff efficiency and productivity, you should start by looking at the data. What are your advisor’s average appointment lengths? How many walk-ins does your branch see on average? What do queue wait times look like on a busy day? By answering questions like these, banks and credit unions can plan ahead for busy days, communicate better with employees, and adjust areas that might be lacking in efficiency. How Bank Staff Shortages Affect Leadership When a bank or credit union is short-staffed, disgruntled customers and overworked employees aren’t the only ones negatively impacted. Management and operations administrators are often faced with difficult problems as well. Scheduling advisors Figuring out the best schedule for your advisors can be difficult if you’re not tracking the ongoing activity of each branch. You might have advisors working from the afternoon until the early evening to catch customers and members getting off work—when what your branch really needs is a morning staff available to handle entrepreneurs and stay-at-home parents. This creates a double whammy of understaffing in the morning and overstaffing in the afternoon. Underutilizing floating staff Assigning floating team members to improve bank staff efficiency can feel like total guesswork. There’s nothing worse than ending up in an understaffed busy location while floating staff members twiddle their thumbs at the empty branch across town. Without branch-specific data driving
The 5 Hidden Business Impacts of Bank Appointment Scheduling Software
During a recent visit to New Orleans, I had the privilege of engaging with customers and industry experts, and digging into their pain points when it comes to truly enhancing their customers’ experiences, and their branch productivity. As it turns out: There was a lot of pain there. One recurring problem statement that arose in conversation was how bank branches can evolve from being solely transactional hubs into full-featured advisory centers. It’s not surprising: The need for today’s financial institutions to drive intentional, high-value interactions between customers and advisors is more pressing than ever. What was surprising in these discussions was the widespread gap in understanding that the solution to this transformation is possible and—indeed—already exists: Appointment scheduling software and lobby management, which, beyond streamlining operations, offers profound benefits. I’d like to fill the knowledge gap on just a few of those benefits right now. Benefit #1. Make invisible data visible to drive operational change. In the quest to transition branches into advisory-centric spaces, understanding how advisors allocate their time is paramount. Without a robust system to monitor activities, banks operate in the dark, making it challenging to meet performance metrics and address customer needs effectively. Implementing comprehensive appointment scheduling systems provide true clarity on the entire customer journey—from more simple account openings, to complex services like mortgage consultations. They answer burning questions from banks like: Did the customer attend their appointment? What prompted their visit? Have they interacted with other departments previously? Data-driven answers to these huge questions give the granular insight needed to truly understand—and powerfully serve—your customers on their preferred channels. For banks, in both the short and long term, translates to higher retention rates and increased referral business. Benefit #2. Uplift your advisors by harmonizing demand and supply. Once we grasp customer demand patterns, the next step is aligning them with advisor availability. Advisors possess a finite inventory of time; optimizing it is crucial for effective workforce planning—and serving customers more seamlessly. By analyzing appointment data, banks can identify peak times for specific services and adjust staffing accordingly. This proactive approach ensures that customers receive timely, personalized service, enhancing their overall experience. Simultaneously, advisors benefit from a balanced workload, leading to increased job satisfaction. The dual outcomes are compelling: improved Net Promoter Scores (NPS) and heightened advisor satisfaction. In an era where banking executives face the challenge of achieving more with fewer resources, such optimization is invaluable. Benefit #3. Connect customers with the advisors that can *actually* help. Customers expect immediate access to services tailored to their needs. However, it’s impractical for banks to station specialists for every service at every branch. The solution lies in intelligent routing—connecting customers to the appropriate advisor, at the right time, through their preferred channel. “At Coconut, we’re pioneering solutions to enhance real-time accessibility across branches. By leveraging technology, we can route customers to advisors based on expertise and availability, ensuring efficient and effective service delivery.” This approach not only meets customer expectations, but also optimizes efficiency in banks and credit unions. As more routine transactions migrate to digital channels, branches can focus on delivering high-value, personalized services, reinforcing their role as advisory centers. Benefit #4. Elevate NPS with real-time engagement. It’s noteworthy that the average 7+ point increase in NPS we’ve observed isn’t solely due to appointment scheduling or lobby management. The true driver is the real-time, transparent communication that these systems facilitate. When customers are informed and guided through their banking journey, it fosters trust and satisfaction. Both customers and advisors value their time and seek trustworthy interactions. By implementing systems that respect these preferences, we create a win-win scenario, enhancing the overall banking experience. Benefit #5. Finally make the seamless shift to digital and advisory services. The banking landscape is undergoing a significant transformation, with a marked shift towards digital channels. Concurrently, the role of physical branches is being redefined. With a decrease in routine transactions handled in-branch, there’s a growing emphasis on providing advisory services that address complex and personalized financial needs. This evolution necessitates a strategic approach to appointment and lobby management, ensuring that branches can effectively serve their advisory purpose. Conclusion: Beyond the Queue Appointment and lobby management are more than operational tools; they’re catalysts for transforming the banking experience. At Coconut Software, we’ve seen the positive impact of implementing this must-have solution, from reducing queues in banks, to skyrocketing CSAT scores. When banks gain real visibility into advisor activities, align resources with customer demand, and facilitate real-time, personalized interactions, they can elevate both customer satisfaction and operational efficiency—which is the future of banking. As we continue to innovate and adapt, embracing these hidden impacts will be crucial in redefining the future of banking, ensuring that we meet the needs of our customers and empower our advisors in this dynamic landscape. If you’re ready for a serious discussion on appointment scheduling software, and want to learn more about how to choose the best online scheduling software for your bank or credit union, let’s talk. Book a Consultation
From The CEO Desk: Thoughts from the Most Powerful Women in Banking Conference
The American Banker Most Powerful Women in Banking Conference recently took place in Manhattan, New York. This annual premier event brings together female leaders to connect, discuss and share insights on what’s shaping the banking industry. I had the opportunity to attend the conference for the first time this year. Many topics were discussed – from AI to employee experience strategies. Here, I’m going to dive into some of my key takeways. AI in Banking: Focus on your Staff A recurring theme was that the most promising use case for AI at a financial institution today (to save bankers time and money) is using AI to make staff more productive and efficient. Which not only results in a boost in productivity, but increased employee morale. How can you do this? Automate the mundane, repetitive tasks, create a knowledge base to get answers quicker across your financial institution to free up time for your staff to spend more time on high impact tasks. Employee Experience drives Customer Satisfaction and Growth It’s so important to not forget how important your employees are at helping to deliver an exceptional customer experience – you need to ensure that your staff are equipped with the right workflows and tools so that every interaction they have with your customers is quick and accurate. The Path to Achieving Career Goals: People, Network and Connections Curiosity, courage and building connections are at the forefront of what is needed to achieve your career goals. But, it ultimately always comes back to the people, the network and connections. Anu Aiyengar, Head of Global M&A J.P. Morgan said, “Don’t accept what someone tells you, continue to ask why.” Highlighting the value of taking risks, staying open-minded and continuously asking “why.” Santander’s Transformation Ana Botin, Executive Chair at Banco Santander (and the first woman to chair a global financial institution), has helped to transform Santander into one of the leading financial institutions in the world with 168 million customers. Their transformation can be attributed to a focus on technology, innovation and customer centricity. Plus, the importance of having the best person leading the charge, not the second best person – the delta between the best and the second best makes all the difference. She also emphasized the importance of diversity in leadership. “When I started, 20% of senior leaders were women—now it’s 31%. We need more mentorship. We need to focus on identifying those ready to lead and building their confidence.” The insights and strategies shared during the conference were so valuable. I’m incredibly grateful to have had the opportunity to connect and learn from women leaders that are leading the evolution of the banking industry and building solutions that will run the future of banking.! 🚀 Learn more about The Most Powerful Women In Banking.
3 Myths about Switching Appointment Schedulers
For a lot of financial institutions, switching their appointment scheduling software is perceived as a massive undertaking. The thing is, it doesn’t have to be. Here are three common misconceptions about what it’s like to switch appointment schedulers, and how they can be addressed so that implementation isn’t such a disruption for your financial institution. #1: It’s too hard to get staff to adopt a new appointment scheduler. When financial institution leaders consider switching any software, one of the first things they consider is whether they have the internal resources to do so. Which makes sense—it’s no easy task getting staff to learn new software. And when an FI is tasked with training, it is a heavy lift if they need a dedicated team to do it. While a lot of appointment scheduling vendors don’t handle training, some do. Look for software vendors who: Conduct preliminary training for your implementation team Offer full functional training for your entire staff Help you update your LMS, FAQs, and other training materials The bottom line is you shouldn’t have to spend time developing training sessions, writing guides, etc. Even after implementation, your vendor should work with you on an ongoing basis to make sure you’re getting the most out of your new tool. It’s also commonly known that staff don’t like change, so it’s easier to maintain the status quo. But when your appointment scheduling vendor is crystal clear about what staff stand to gain from a new solution, it becomes easy to overlook any short-term awkwardness of the switch itself. Staff just want their job to be easier, not harder. If your new appointment scheduler doesn’t facilitate that, you wouldn’t have chosen it in the first place—so then it’s just a matter of communicating how it will make staff’s lives easier. #2: Your IT team is going to be consumed by the switch. IT resources are among the first things to consider when implementing a software switch. A secure switch for many staff members, all of whom need to be assigned the right permissions, is often thought of as a massive undertaking that prevents IT teams from working on much else while it’s happening. While your IT team should always be in charge of keeping your FI secure, your vendor should make it easy for them by handling things like: Setting up integrations Configuring data Configuring client settings Performing the cutover to the new tool #3: Your members will notice the switch because of downtime. It’s every FI’s worst nightmare: They switch appointment schedulers and their customer or members’ existing appointments disappear. Or they can’t book new appointments because the switch from old to new tool triggered downtime. This is where continuity of service is everything. The best way to avoid downtime is through a soft cutover, which is when FIs cut over to their new appointment scheduling software while their old software is still running. A soft cutover usually involves an overlap for a period of one or two weeks. A soft cutover depends on your new vendor’s flexibility in working around existing contracts. Many FIs think they need to wait until their existing software contract comes to an end before they start implementing a new tool, but this is a misconception in and of itself. In addition to training and technical implementation, your vendor is a partner who can help you launch your new appointment scheduler in a way your customers or members won’t even notice—and on the back end, that means working around the contract end date of an existing solution. Switching is easier than you think Coconut has more than a decade of experience working with financial institutions (including helping them migrate from previous systems), and we’ll hold your hand every step of the way. When you switch to Coconut, we make it easy by: Training staff for you Holding ongoing coaching sessions after implementation Configuring data, integrations, and settings—so your IT team can focus on security Accommodating existing vendor contracts to perform a cutover without downtime Read our guide for switching to learn more about the process. If you’re ready now, book a meeting with our team.
What Does The Branch of the Future Look Like? 8 Trends To Embrace Today
What does the “branch of the future” look like? This discussion has been a hot topic lately among financial institutions, as professionals speculate on how advances in technology might impact banks and credit unions in 2024 and beyond. As FIs begin to embrace unconventional ideas like mobile banking in trucks and vans, the possibilities for the branch of the future seem endless. Let’s take a look at some changes the financial sector may see in the next 10 years, and what banks and credit unions should be aiming for in order to create the branch of the future. The Branch as an Extension of Digital Touchpoints In our digital era, many folks are asking, “Will physical branches completely phase out? Do we really need financial institutions on every street corner in this digital age?” While mobile and remote banking is growing in popularity, around 29% of people still prefer to do their banking in person. While online options are nice for simple transactions, by and large, people want to speak with an advisor for complex matters like applying for a loan or discussing wealth management. Rather than ceasing to exist, brick-and-mortar banks and credit unions should evolve with customer and member needs. What does this look like in the branch of the future? Aaron Young, SVP of Branch Operations at the Credit Union of Southern California, has some ideas. “The branch should be an extension of the digital experience, not the other way around,” he says. “If a customer or member wants to do the majority of their banking online, but they need help at a physical location occasionally, they should be met with digital efficiencies in-branch as well.” Here are eight distinguishing features that will characterize the branch of the future. 1. Interactive Teller Machines (ITM) One tool that will be a hallmark of the branch of the future is the Interactive Teller Machine (ITM). Like an Automated Teller Machine (ATM), ITMs allow customers and members to make deposits and withdrawals, but they also feature a video screen for virtual calls with staff members. Recently, a bank in North and South Carolina deployed 200 ITMs in an effort to make banking more accessible to its customers. These self-service machines work with tellers to provide face-to-face interactions for help with account questions, paying bills, and even e-signatures. As bank staffing shortages persist, ITMs are a great alternative to physical branches in areas that may not have as much demand. 2. Video Banking During the lockdowns of 2020, video banking became a crucial tool for financial institutions. Today, customers and members still enjoy this feature as an option, as 46% say they will continue to use video banking. In the branch of the future, video banking should be a given. Offering this flexibility increases customer satisfaction, provides remote work options for staff, and improves appointment efficiency. 3. Appointment Scheduling and Virtual Queueing Other self-service tools like appointment scheduling and queue management software will be a must-have in the branch of the future. Customers and members should be able to book appointments online, join a queue virtually, see live wait times, and select an appointment time directly from Google search results. Self-service appointment booking options save employees time, result in fewer no-shows and cancellations, and increase close rates. Implementing this technology is a win-win-win that benefits customers, frontline representatives, and the FI at large. 4. Efficient, Advice-Driven Branches Along with an increase in self-service options, banks and credit unions may begin to see a big shift in the types of services they offer in the branch of the future. Rather than being available for every small transaction or question, staff members may spend time at physical branches only to walk customers through larger concerns like mortgages and auto loans. Aaron notes that this shift has already caught on in some parts of the world. “I was in Europe a year ago and I went into every financial institution I could to see their setup,” he said. “There aren’t really any teller lines. In-person branches are advice-driven, and people get their cash from an ATM.” In this scenario, the branch of the future may begin to look more like a concierge service for scheduled meetings, and only the occasional walk-in. Aaron is confident that this shift will soon be the norm in North America as well. 5. Micro-Branches While brick-and-mortar branches probably won’t be phasing out any time soon, there may be an increase in smaller branches, sometimes known as “micro-branches.” According to Aaron, “You hear about a lot of branches closing, but what you don’t hear about is all those that are opening. We’re focused on optimization. Populations are shifting, and we have to ask: where can we capitalize on the most opportunities?” Aaron also notes that there are smaller pockets of opportunity in communities that can benefit from micro branches. “I think there will be distinct ways the branch of the future is organized based upon population size. We will see greater numbers in smaller branches.” 6. Smart Bank Automation The branch of the future will also embrace the concept of the “Smart Branch.” Imagine a bank or credit union with automated features built-in—like a smart home. Smart features like lighting, alarm systems, security cameras, thermostats, and AI voice assistants can all be incorporated into physical branches. Taking it one step further, a smart branch could integrate personalized features—like a smart shopping experience. Amazon uses radio-frequency identification (RFID) technology to automatically charge customers as they “just walk out” of storefronts. The branch of the future could use similar technology to streamline transactions and personally welcome customers and members. Artificial intelligence (AI) will also likely play a large role in Smart Banks. Generative AI tools like Large Language Models (LLMs) and voice assistants can help customers and members find resources, fill out applications, and even make financial plans. 7. Financial Advisors As Reliable, Personalized Contacts The branch of the future will also feature a more personalized banker experience. Aaron Young believes
3 Banking Technology Trends Every Bank and Credit Union Needs To Know In 2024
Today’s banks and credit unions are facing immense pressure to do more with less. This is driven by several factors, including an industry-wide talent shortage, budget cuts, and an increasingly competitive industry landscape. As a result, FIs are increasingly relying on technology to help them operate more efficiently than ever. Global banking IT spending will reach $715 billion by 2025, according to Statista, and banking software spending will make up the bulk of this growth—with a 13.5% increase this year. The market for AI in banking alone is expected to reach $64.03 billion by 2030. With so many banking technology options available, how can you determine which trends are worth the hype? In this article, we’ll help you cut through the noise. We’ll highlight three trends that will help your FI drive growth, loyalty, and a better experience for both customers and staff. 1. Hybrid Banking—The Key To Winning The Customer Experience Race The last several years have seen an accelerated focus on digital experiences. More than 65% of FIs have partnered with at least one fintech company over the past three years, and 35% invested in a fintech startup. As of 2021, 30% of banks and 44% of credit unions planned to launch a banking chatbot. And that’s just the beginning. FIs are also revamping their digital banking strategy adding robo-advisors, implementing video banking, and so much more. These digital tools have many advantages, helping to meet customers where they are and delivering more convenience at a lower cost to the FI. But there’s a danger to this digital-only approach: if you’re not careful, it can come at the expense of customer experience. Most fintech partnerships have fallen short of their FI’s goals, with just 28% saying they’ve seen a 5% or better increase in loan volume. Likewise, many banks say chatbots lack a crucial “human element,” and 42% of all businesses say their main priority is to connect on a deeper digital level with consumers. Worst of all, only 21% of customers say their FI has helped them improve their overall financial health. The Benefits of Hybrid Banking Clearly, FIs are struggling to give customers the financial advice they need in a way that’s both efficient and effective. But a hybrid banking strategy can help bridge this concerning gap, giving customers the human support they need when making critical financial decisions. When FIs make it easier to connect with real humans (in additional to digital touchpoints), they’re more likely to attract new customers, sell more products, and improve the overall experience. Today’s consumers live fast-paced, busy lives. They don’t want to spend hours in line and they don’t want to spend hours Googling for answers to their financial questions. Instead, they want quick, simple, and direct solutions. Banks and credit unions can meet this demand by making it easy for customers and members to book with financial advisors in just a few clicks. Self-service appointment scheduling tools are easy to use, so clients are more likely to use them. Advisors can even send personalized links to proactively reach out and offer appointments at scale. When advisors have more face time with their clients, they can offer the type of personalized support that makes clients want to stay loyal to your institution. 2. Increasing Staff Efficiency To Overcome Staffing Shortages In the past few years, banks and credit unions have faced a drastic increase in staff turnover and employee dissatisfaction. On average, banks had a turnover rate of 25% in 2022, and one credit union study revealed a 131% increase in dissatisfaction rates related to staff training. So it’s no surprise to learn that 80% of banks and credit unions name staffing efficiency as one of their biggest concerns. How Staff Inefficiency Hurts FIs Staffing shortages are a key driver of FI inefficiency and staff burnout, which poses a very real threat to customer service and overall growth. Here are just a few of the scenarios that can play out when FIs aren’t focused on staff efficiency: Long in-branch wait times. When branches are short-staffed, customers and members often face long wait times for even the most basic services, such as withdrawals or deposits. If they have to wait too long, clients leave before getting the help they need. This can lead to frustration, resentment, and decreased loyalty. Long lead times for pre-scheduled appointments. If customers and members have to wait several weeks to see an advisor in person, they may lose patience with the institution and look elsewhere for services. This creates missed opportunities to sell products and bring in revenue. No qualified staff to help with products and services. Nearly 60% of banking customers expect their financial institution to help them improve their financial health. These customers often want to speak with qualified staff for advice about specific products and services. When these staff members aren’t available, they may look to a competitor for faster services. These circumstances all lead to missed revenue opportunities and missed changes to build important relationships with customers and members. Tools to Increase Staff Efficiency To combat this risk, FIs must make sure their staff is equipped with an end-to-end platform that empowers them to do their job well. An appointment scheduling platform can help staff prepare for appointments ahead of time, share documents, collect signatures, and note follow-up tasks from one user-friendly interface. Ultimately, they offer the tools needed to deliver the same quality customer experience, whether in person or online. Video banking solutions also allow advisory or frontline staff to meet with clients from anywhere. Not only does this make them happier, but it cuts down on travel time and lets them serve multiple locations at once, meaning they can have more time for appointments. Solutions built specifically for banking will have the security standards, signing integrations, and co-browsing capabilities advisors need to complete paperwork virtually. Video banking also remains very popular with customers. About 46% of customers still wanted to use video banking after the pandemic, and 36%
3 Golden Insights On Balancing Digital & Physical Channels (From A Branch Ops Pro)
Besides deposit growth, every financial institution’s experience and operations teams have one thing on their collective hive mind: When do clients want to interact in person, and when would they rather interact with my institution online? From the delivery of services to transactions to communication, financial institutions have discovered that not all clients want the same combination of physical versus digital. When empathy is the ultimate goal in servicing members, it may seem counterintuitive that robust data, analytics, and interconnected software solutions are the means to get there—but this is exactly what Aaron Young, Senior Vice-President of Branch Operations and Retail Banking at the Credit Union of Southern California, discovered during his FI’s digital transformation. We asked Jim Marous, podcast host and co-publisher at The Financial Brand, to dig into what Aaron can pass on to other FIs in the midst of their own digital transformations. Watch the full conversation or keep reading for the highlights, with time-stamps to help you dive deeper where you want to. https://proofdigital-assets.s3.us-east-1.amazonaws.com/videos/ignite-athletics/Two+Halves+Dont+Make+A+Whole+Webinar.mp4 1. “Digital needs to be an extension of the branch, not the other way around.” It’s tempting to think digital-first, but Aaron says the reality is that a lot of members may still need education on how something like a mobile app can make their lives easier in the long run. “One of the things we’re testing right now,” Aaron says, “is when our members come into a branch to open an account, we walk them through our mobile banking app instead of going to a teller.” Aaron notes that people are trained to visit a teller when they need to make a deposit, but that behavior can change with an in-person walkthrough at a branch. Key phrases Aaron emphasizes are “options” and “what’s possible.” “When we’re thinking about how we can improve the member experience,” he says, “we want to provide options. When you give people options, they’re in control. When you force one direction by only giving one option, that’s where friction starts to happen.” The Credit Union of Southern California uses data to decide what those options look like. With an understanding that member experience is their only differentiator, they track: Member demographics Website exits Chatbot abandonment Coconut online appointment abandonment Type of in-branch transactions Digital channel paths Aaron thinks of these data points as breadcrumbs that answer some fundamental questions about his members: Do members leave one channel to go to the next? How many times did they drop off? Why did they drop off? Then, as technology evolves, Aaron connects parts of the digital journey to solve member problems. 2. “Choose platforms that feed data back to pieces of core business.” Credit Union of Southern California offers several access points to their members: texting, phone calls, mobile app, chatbots, in-person, video. But Aaron says the institution is ultimately a live answer credit union, and his goal is to make sure he’s giving members the fastest route to completing a task—especially if it means talking to a human being. “Our phone center is our central nervous system—we aim to answer 75% of our calls in 60 seconds,” Aaron says. “Even when you’re using our chatbot, it’s an easy prompt to speak to a human. We continue to build around that as we grow because we know it’s important for people to be able to get to someone.” When Aaron started looking for an appointment solution, he prioritized platforms that could increase member satisfaction scores and net promoter scores, both of which increase with human interactions. “We learned through having Coconut in place that our NPS scores are higher when people make an appointment versus when they walk in,” he says. “When members make an appointment, 70% of them give us high scores versus only 30% of walk-ins. When we started out with Coconut and that behavior wasn’t yet built with members, we were getting 600 combined walk-ins and appointments per month. We’re now up to 3,700 combined walk-ins and appointments per month. 3. “Our key to success is transforming into an advice center.” As financial institutions shift to digital for basic tasks, many of them are repositioning the branch as an advice center that focuses on larger financial challenges. The Credit Union of Southern California is no exception, and a rethinking of their branch locations by type has been as much a part of their digital transformation as technological solutions. Aaron says this repositioning started with their employees, and he stresses the importance of their involvement from the beginning. “We’ve mapped out the skill sets our team members have today versus what they’ll need as we transition into a more advice-driven model,” he says. “We’re piloting a program for licensed bank employees, and we have a few team members who have volunteered to get insurance training so they can sell annuities.” Aaron believes that branches still carry major importance, but that modern institutions need to optimize their branch network around their members. “Institutions need to listen to their members and adapt branches to what they need,” he says, “which will determine the style of branch and where they’re located. Credit Union of Southern California is as of now trying to break down the types of branches we have within our configuration.” While Credit Union of Southern California’s digital transformation isn’t over, Aaron is far enough into the process that he has some thoughts on what he would do differently if he had to start over. Watch his full interview with podcast host Jim Marous and learn how to smooth out your own hybrid model adoption process, make sure your digital and branch transformation journeys work together, and create experiences that make your digital channels feel like an extension of your branch.
10 Bank Performance Metrics Every Financial Institution Needs To Track
Figuring out which bank performance metrics to pay attention to in a sea of data can be overwhelming, especially in the midst of staffing shortages and increasing client churn. In fact, financial health scores dropped 9 percentage points last year in the United States, with many FI’s failing to provide the help these clients needed. Banks and credit unions owe it to their customers and members to find solutions, and the right bank performance metrics can point you in the right direction. In this guide, we’ll cover the 10 most important bank performance metrics, and how this data can result in happier customers, more efficient staff, and overall growth. 10 Most Meaningful Metrics A Bank and Credit Can Track Tracking bank branch performance metrics is usually in service of these three goals: increasing customer and member satisfaction, improving staff efficiency, and growing as a business overall. Each category contains important indicators every bank and credit union can benefit from following. Tracking Satisfaction Metrics First and foremost, FIs should be tracking metrics pertaining to the satisfaction of their customers and members. The Customer Effort Score (CES) measures how much effort it took for a client to get an issue resolved, a request fulfillled, a product purchased/returned or a question answered. A CES is often sent out as a single-question survey after someone visits a branch. The question is often worded with a scale. For example: “On a scale of 1 to 5 (1 being the hardest and 5 being the easiest), how easy was it for you to get answers to your questions today?” This has been an increasingly popular metric for banks and CUs to track to make sure it’s easy for members to get things done across any channel. The Net Promoter Score (NPS) is similar to a CES in that it involves a one-question survey, but rather than inquiring about effort, it asks about a customer’s likelihood to recommend your business. A typical NPS question looks like this: “On a scale of 1–10 (1 being not likely at all and 10 being extremely likely) how likely are you to recommend [insert FI name] to your friends and family? Those who answer between 1 and 6 are often referred to as “detractors” which bring your NPS down, 7–8 are viewed as neutral, and 9–10 are “promoters” which increase score totals. The NPS is especially helpful to credit unions because they often work with a much smaller membership base. Digital adoption rate refers to the percentage of clients who are consistently using an FI’s online tools like a website or mobile app. This metric can help banks and credit unions identify demographics that need more encouragement toward online banking. Today, mobile banking is a huge part of the customer and member journey as 78% of Americans prefer mobile or online banking. Self-service solutions give clients the flexibility they crave, and when digital adoption is high, banks and credit unions see more customer satisfaction and higher product holding. Customer/member retention refers to the percentage of clients who continue to bank with an institution year over year, rather than withdrawing their business. The average retention rate for banks is 75%, but it’s important to be intimately familiar with your FI’s unique retention numbers. Retention rates should be analyzed at least annually, but this could also be a bank performance metric in quarterly reports as well. Any time these rates drop, it’s a clear sign that your FI should be reevaluating customer satisfaction measures. Staff Efficiency Metrics Along with customer satisfaction, staff efficiency is a key data point for FI’s. Staff efficiency metrics inform institutions about the length of appointments, average customer wait times, and the number of employees compared to the traffic of a branch. Keeping track of branch traffic, staff productivity, and capacity will help your FI stay prepared, informed, and efficient. Branch traffic is a metric that tells FI’s how busy each location is on any given day. This is one of the most important bank performance metrics because understanding when customers visit your branch and why they’re visiting will help your FI prepare for busy days ahead of time. Queue management software can help your FI keep track of walk-in traffic and wait times so that your staff feels better equipped to handle busy days. Digital queues also decrease the number of cancellations and walk-outs, because there’s an option to schedule a return visit for a later window. Staff utilization metrics involve appointment lengths, closure rates, and average handling times. Having a holistic view of the way your staff spends their time is a crucial banking performance metric because managers can fill time that is unaccounted for, and provide help to busy locations. Appointment Scheduling software can also help staff better utilize their time with interactive calendars and pre-appointment checklists. Appointment scheduling software also allows customers and members to make appointments in advance, giving managers, advisors, and staff a much clearer picture of the day-to-day. Staff capacity is a fairly straightforward metric—it tracks how many employees are working at a location each day, compared to the traffic at that location. Understanding staffing capacity needs for each individual branch will help managers place floating staff appropriately, and determine when advisors should be on call. Staffing shortages continue to be an issue for banks and credit unions, which is why it’s so important to find out where current team members are needed, and if you need to focus on talent acquisition. Tracking Growth As your FI gains a better understanding of customer satisfaction metrics and staff efficiency, it’s also important to keep track of growth. Bank performance metrics like wallet share, new accounts opened, and loan closures all provide a clear picture of an FI’s success. Share of wallet refers to the number of accounts one person or household holds at your bank or credit union. Around 56% of Americans have more than one bank—a customer might choose to open a high-yield savings account with an online FI, a checking
Why We Created Cabana Days: Our Version Of A Four Day Work Week
After a stressful, busy year, it’s time to change the way we work. It’s always been important to me and Romeo, Coconut Software’s co-founder and Chief Product and Technology Officer, to know that our teams are feeling their best when they come to work. Talking to Coconut employees, and looking at the world in general, we realized that there was more that Coconut Software could do to help. I think that everyone at our company, and likely all companies, was feeling the stress of the pandemic, the ongoing lockdowns and having to manage working from home, childcare and staying healthy. The executive and leadership team had been discussing unlimited vacation as something to offer our employees to encourage them to log off and take some time to rest. An employee had mentioned that a previous company offered four day work weeks – we decided to look into it further as an alternative to the unlimited vacation benefit. The more we researched and considered a four day work week (to create our version called Cabana Days), the more we realized it would be the right policy for our culture and our style of work. Having regular, consistent days where the team is encouraged to log off (for most it’ll be Fridays, for other customer support roles it will be Mondays) seemed to work better than the option to take more vacation. We wanted our employees to spend time on the things that matter: the meetings that add value, the work that’ll help us reach our goals, and the rest that gives our team energy. It’s going to help keep them happy, motivated and engaged. And It will help us recruit for our current and future positions: with our recent Series B raise, we are looking to fill many roles across all functions and want to attract the right people to help reach our growth goals. Keeping our existing employees happy, motivated and engaged The Cabana Day program was inspired from other countries and organizations implementing a four day work week, providing a better work life balance to their staff. It is so critical to ensure people have time to put themselves and their families first. We believe if you take care of your employees, they in turn can take better care of themselves, and in turn they will take better care of the customer. We started talking about the concept back in June – we needed time to develop the pilot program, talk with each of the department heads and figure out how our pilot would actually roll out. Everything was organized so that at the beginning of August we started the experiment of offering our team every Friday off. We then extended the pilot two more times (into September, and then again into October). At that point, the feedback from our team about how well rested they were feeling, how much more productive they were, and the quality time they were able to spend on their hobbies, families and friends. It demonstrated to us that we needed to make this permanent. We announced internally at our November All Hands meeting that the experiment would transition to an ongoing policy. So far (three months of the pilot, and two months officially rolled out) the biggest tangible benefit has been the mindset and happiness of our team – managers consistently get comments about how refreshed and well rested their teams are on Monday mornings. Seeing pictures on our Slack channels and social accounts of what people did on their Fridays off has been really gratifying. Pictures of people going on trips with their family, spending time with their kids and pets, working on their hobbies, or just relaxing. It validates to us that this was the right decision, the fact that our people are telling us they are happier, more productive and more energized. Recruiting for current and future positions I’ve heard from our recruiting team that it is absolutely helping us find and place top notch people in Coconut. Culture, especially in a post-COVID world, is going to be one of the most important considerations for people and where they work. And Coconut Software is in a great position to attract incredible talent because of our culture. It is a very competitive labor market – with “the Great Resignation”, and many businesses starting to rebound from the pandemic, candidates have many opportunities for their next role. Our recruitment team has mentioned that the conversations they’re having with candidates have changed – before the pandemic most of the time was spent on compensation and growth opportunities. Now, nearly every candidate is asking how Coconut is promoting work and life balance and encouraging mental health. I’ve always been proud of the support we’ve had in place (generous vacation, benefits and a health spending account) but now we are even more clearly showing we’re serious about taking care of our team. Metrics for success: managing what we can measure As we recommend to our customers, we’ve created and are tracking measurable metrics for projects, in order to manage outcomes. From the research we did on other programs, we figured we’d see an improvement in morale, work and life balance, as well as productivity. For our pilot specifically, it was important for us to track how many Fridays our team actually took off, and how many felt they needed to work those days. From August to October: 96% of the team were able to take at least several Fridays off. 78% of employees are more engaged at work, with 18% feeling the same. 78% felt that the balance of home and work life is better, 15% stating that it’s the same. 60% of the team felt that they’re doing higher quality of work, 39% the same. We already had high expectations on quality of work and productivity – the leadership team was pleased to see that there is even better engagement. Have a strong culture of communication and empathy? You can do this too!
From the Desk of Coconut Software’s CEO, Katherine Regnier
Today we announced that Coconut Software has raised $28 Million CAD in Series B funding led by Klass Capital, with full participation from our existing investors. This funding will help us grow the value we provide to our customers by: Bringing new solutions to market, such as Coconut Connect launching Fall 2021 Ramping up our hiring to strengthen the support our customers receive Evolving our existing solutions to meet new challenges In the past year and a half, I’ve heard from many of our customers about the challenges of moving to ‘digital first’ operations – not only helping their customers and members from afar, but also keeping their teams safe. I’m glad that our solutions are able to help financial institutions continue to develop and deepen the relationships they have with their customers and members. We’ve received much positive feedback about Phone & Video support for appointments, Reserve with Google integration, Online Queuing for managing lobby traffic, and the user interface refreshments we’ve completed. Every decision we make is through the lens of ‘How will this help our customers solve the challenges that keep them up at night?’ This funding will help us tackle even more of these challenges, and continue to cultivate a seamless, omnichannel experience for financial institution staff, customers and members. The world is a very different place than it was when I started Coconut Software with Romeo a decade ago. We’re so grateful for the trust and partnership we have with our customers, employees, and partners and look forward to growing along with you. If you have any questions, or would like to catch up, feel free to email me at katherine.regnier@coconutsoftware.com Katherine, CEO, Coconut Software
Katherine’s response to: “Go Beyond ROI With ‘Return on Experience’ in Banking”
I was nodding my head as I was reading Jim Marous’ recent article “Go Beyond ROI With ‘Return on Experience’ in Banking” as it’s been one of the most talked about topics when I speak to customers and the market in general. Financial institutions must combine the return on investment calculations with the “return on experience” or ROX metrics in order to create the right conversations at the leadership level. And not limit it to the member or customer base experience, but extend to prospect, vendor and staff experience as well. We all know that an exceptional experience improves brand affection, decreases churn and increases the chances of increasing share of wallet. But your staff can’t do it without the right processes, support and tools. Jim is right on the money when he states “improving experiences by simplifying back-office processes and delivering intuitive solutions across all channels” – a paper and pen, or home-grown solution likely isn’t cutting it anymore for your members and customers. And it certainly takes away precious time from your staff. Having a well designed and well integrated tech stack means your team can reduce the manual, administrative tasks (often prone to human error) and instead can focus on the consultative, advice based conversations that tend to have the highest value. One of the most immediate benefits a solution like Coconut can offer, is the reduction in people-hours needed to do basic appointment scheduling and lobby management tasks. Something as simple as automating appointment reminders can save hours each week, and turns this mundane touchpoint into an opportunity to delight and connect with recipients. In terms of the actual calculation of ROX, here’s where I think many financial institutions may have trouble. Net value of benefits is divided by the cost of the investment, then multiplied by 100 to get the ROX. But what does “net value of benefits” mean and how do banks and credit unions actually track this? According to Jim’s article, and the quoted Salesforce report, it would include acquisition costs, time to market, speed to serve or customer effort score, customer satisfaction etc. But FIs must have the technology implemented to accurately track these inputs. Before considering how to calculate ROX consider: Can you accurately measure the number of appointments, no shows, or branch visits your institution has on a weekly basis? Do you have the ability to track the outcomes of those interactions? Can you track specific engagement points between your staff and your customers, and how satisfied both parties were with the interaction? Can you tie in your marketing efforts to services sold or appointments completed? Are you able to accurately predict traffic at your branches or the time it takes to complete specific services? I totally agree with Jim’s position in this article, and can only imagine the introspective conversations required with your leadership team about what you can currently measure, in order to properly manage and track your ROX.