Financial institutions were at the forefront of self service with the introduction of the ATM in 1967. However, with few exceptions, banks and credit unions in the U.S. have done little since then to capitalize on this head start in the industry.
That may be about to change. After watching their European counterparts successfully implement self-service devices, U.S. banks and credit unions are expanding their offerings as well. Financial self-service kiosks, while relatively new in the United States, are widely accepted and available in Europe.
"This [branch automation] has been very successful with a lot of European banks," said Uwe Krause, global management and marketing director for Paderborn, Germany-based Wincor Nixdorf International, and he expects that success to be experienced in the U.S.
Face to face
A teller-assisted kiosk helps FIs relieve staffing concerns by allowing one teller to monitor several transactions simultaneously.
One of the more critical positions in the bank is the teller, yet because the position has traditionally not paid well, it is difficult for banks to keep staff. Bill Lynch, vice president of self service solutions at Source Technologies, manufacturer of a teller-assisted kiosk said, "For many banks, the turnover rate is in excess of 40 percent a year."
"The single most expensive transaction for a bank is the face-to-face transaction that occurs when a customer speaks to a teller," said Lynch.
Added to that expense is the cost of the physical space required by teller stations.
"A traditional teller station consumes approximately 60 square feet of lobby space," said Dan McIntyre, senior product manager at Diebold Inc. In contrast, Diebold's RemoteTeller System requires only 18 to 20 square feet.
"The smaller footprint frees up lobby space for sale of additional financial products and services," said McIntyre. Tellers are located in more secure, ergonomically designed rooms that are not as expensive to maintain.
Help is close at hand
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| Diebold's RemoteTeller allows customers to initiate all banking tasks by themselves; interaction with a teller is facilitated by pneumatic tubes. |
The self-service concept can be a double-edged sword. While self-service devices offer convenience, they don't offer personal service. FI customers want a more personal relationship with the caretakers of their money, said Lynch.
However, those same customers still want convenience, and they don't want to wait in line for service.
Cindy Morgan, a spokesperson for Williston, Vt.-based New England Federal Credit Union, said that the FIs' decision to deploy Diebold's RemoteTeller at one branch and a planned deployment of self-service kiosks at another branch was based on the credit union's desire to provide its members with greater banking convenience.
"The kiosks give the members options rather than having to stand in a line for service," Morgan said. Members who choose to use the self-service device still have branch representatives close at hand to assist them.
Morgan said that "no matter what, some people are going to want to wait in line … they want that face-to-face interaction." The kiosks can benefit those individuals too, by reducing their wait times as more customers move over to self service.
When North Charleston, S.C.-based South Carolina Federal Credit Union deployed RemoteTeller, management chose to introduce the four stations in two of its newer branches, which were located in professional business areas.
In its planning, SCFCU management believed these areas would benefit from branches that could provide quick service and that business professionals would be more comfortable using the devices than perhaps would a different demographic set.
SCFCU found that the devices appeal to all demographic sectors; all ages, all genders, and all incomes use the kiosks. Feedback has been tremendously positive, with nine of 10 members using the devices on subsequent visits to the branch, said Kristy dosReis, a spokesperson for the FI.
Six of one, half dozen of another
The emerging self-service devices differ in their offerings and technical nature, but most allow a customer to perform any financial transaction that he could at a teller line or at a drive-thru window, such as checking account balances and making deposits or withdrawals.
Some devices, such as Source Technologies' teller-assisted kiosk, are more fully automated than others in that, like ATMs, they can accept and dispense cash without a teller's assistance.
A customer identifies himself at the device either by inserting his debit card or entering unique ID number. The software, which is integrated with the FI's current teller platform, allows the teller to assist the customer anytime during a transaction.
The multilingual capability of the kiosk also helps FIs in their efforts to reach new markets. There is no limit to the number of languages the device can support, and there are no communication challenges as the software permits the teller to view the transactions in his own language.
For FIs, the teller-assisted kiosk automates the most expensive teller transactions: cash handling, customer document prep, check cashing, cashier's check prep and customer authentication.
"The average face-to-face interaction time between a teller and a customer is anywhere from two to four minutes," said Lynch. "Once a member walks up to a teller, the teller cannot do anything else."
If a teller needs to assist a customer with a transaction, Source Technologies' device cuts the amount of time that the teller and customer need to interact to about 30 seconds because the customer is doing part of the work by entering the data before a teller gets involved. The time saved frees the teller to assist other customers or promote more profitable bank offerings, such as mortgages and loans.
Krause said, "The target is to keep the people you have – you just have to change their job descriptions. … For example, the teller will not become redundant. You must train the teller to do something different."
Downtime for tellers to reconcile cash boxes also is eliminated as cash recyclers in the kiosks complete that task automatically.
A horse of a different color
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Diebold's RemoteTeller allows customers to complete most routine transactions themselves. However, unlike kiosks that can accept and dispense cash independently of a teller, RemoteTeller devices require teller intervention to conduct deposit or withdrawal transactions.
The teller, who is located onsite within a secure room, accepts and dispenses cash through a pneumatic tube. Both NEFCU and SCFCU cite this security aspect for tellers as one of the main benefits of going with the RemoteTeller System.
Credit union members communicate with tellers via a video monitor from a private console. The member can choose to talk to the teller over a speaker or by using a phone located on the kiosk for better privacy.
dosReis said that branch service personnel are on-hand for more personal service, such as providing loan and mortgage information, as well as to assist members in using the self-service devices.
For the customer, self-service kiosks improve the banking experience by reducing wait time and the need for manual bank forms. In addition, the kiosks offer FIs another avenue for educating clients and increasing teller productivity. Some offer investment information, rapid loan review features and the opportunity to sign up for seminars.
When the kiosks are not in use, the screens can act as a marketing tool by cycling information about the FIs products and services.
