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.
Arvest Bank: Creating a Convenient, Frictionless Customer Experience
Offering multiple service channels can leave customers confused about which option to choose. Without a clear understanding of the fastest way to get assistance, customers can feel overwhelmed and frustrated.
Arvest Bank addressed this challenge by implementing appointment scheduling and lobby management software. This system shows real-time availability of advisors and current wait times, making it easier for customers to decide whether to visit a branch, join a phone queue, or use a self-service solution.
The results were immediate. The bank reduced average wait times from one hour to just 15-20 minutes. In its first year, Arvest logged 47,500 pre-booked appointments and 137,600 total appointments, achieving a 69% appointment completion rate. This also improved branch operations, optimized staffing levels, and boosted efficiency across other departments. Most importantly, it helped the bank keep its customers happy and loyal.
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, but they also want to engage with advisors for more complex financial conversations. Banks that understand balance will reap the benefits, enjoying greater customer satisfaction, growth, and revenue.
US Bank is one such example of this phenomenon. The FI offers a suite of “do it yourself” and “do it together” tools, which have contributed to their spot at the top of the most prestigious Customer Experience reports.
Since their customers have multiple ways to get things done, they feel empowered and in control of their banking experience. Today, the bank is known for its friendly, easy-to-reach advisors and its innovative approach to hybrid banking. Better yet, the bank enjoyed a 15.55% increase in revenue YoY.
Navy Federal Credit Union
Banks that value the power of human connection will always have a leg up against those that focus solely on digital processes. For example, Navy Federal Credit Union has stood at the top of Forrester’s Experience Index for the past seven years, in part because the CU is focused on humanizing its digital channels.
“One of our philosophies is that you will always have a path to a human,” said Annie Sebastian, Chief Member Strategy Officer at Navy Federal. “We recognize the importance of that human connection, but with so much interaction happening digitally, we have to … humanize our digital channels.”
The FI does so by conducting surveys, focus groups, and feedback sessions to optimize user experience design and strategy. They strive to understand their members’ needs, and are even considering opening more branches to build on those human relationships.
Reaping the Benefits of Hybrid Banking
Digital banking initiatives are on the rise, with 35% of global banking executives saying they’re focused on digital transformation. Still, a digital-first approach isn’t enough to satisfy ever-changing consumer demands. Digital banking alone can lack the human touch and personal connection members want, and traditional banking alone can lack flexibility and convenience.
In a world where the majority of consumers (86%) value a seamless cross-channel banking experience, a hybrid banking strategy stands out as the best way to increase accessibility and personalization, while also reducing wait times and friction. FIs that embrace the hybrid model are better positioned to compete in the evolving financial industry. They’re able to cater to the diverse needs of customers and stay relevant in an increasingly digital world.
Explore Coconut Software’s bank optimization software solutions today to see how we can help your FI successfully adopt the strategies found in these hybrid banking examples.
With tools like appointment booking, queue management, video banking, and reporting and insights, we can help your FI seamlessly integrate digital and in-person services, helping to improve client satisfaction, operational efficiency, growth, and retention. Coconut can help your FI seamlessly integrate digital and in-person services, helping to improve client satisfaction, operational efficiency, growth, and retention.
Frequently Asked Questions
What is omnichannel banking?
Omnichannel banking refers to an integrated approach to banking where customers can seamlessly interact with their financial institution across multiple channels (online, mobile, in-person, etc.). It ensures a unified experience regardless of how customers choose to engage.
What are the benefits of hybrid banking?
Hybrid banking combines digital and physical banking services, offering customers greater flexibility, accessibility, and personalization. The model enhances operational efficiency, reduces wait times, and improves customer satisfaction. It also supports employee productivity and retention by offering flexible working options.
How does hybrid banking improve operational efficiency in banks?
By leveraging digital tools like appointment scheduling software, bank queue management, and video banking, hybrid banking reduces branch congestion, optimizes staff allocation, reduces lobby queues in banks, solves for staff shortages, and improves resource utilization. This leads to faster service, lower operational costs, and better overall efficiency.
Can hybrid banking help drive mortgage loan growth?
Yes, hybrid banking can boost loan growth by streamlining the customer experience. Tools like self-serve appointment scheduling allow customers to meet with loan officers more easily, increasing loan conversion rates and enhancing the overall lending process.
How does hybrid banking contribute to mortgage growth?
Hybrid banking provides customers with more accessible ways to engage with mortgage officers, whether digitally or in person. This flexibility increases customer satisfaction and accelerates the mortgage application process, contributing to higher conversion rates and more mortgage business.
How can banks use AI in hybrid banking?
AI can optimize hybrid banking by automating key tasks such as loan processing, streamlining customer service through AI-driven chatbots, and enhancing fraud detection with machine learning. For mortgage growth, AI targets high-potential leads, refines interest rate strategies, and expands credit accessibility using advanced risk models. Predictive analytics also play a role in improving customer retention and identifying cross-selling opportunities, enabling banks to provide a more personalized and efficient banking experience across both digital and physical channels.
