Interest in remote delivery options continues to grow in credit unions. According to the Callahan & Associates' 2007 Technology Survey, 59% of credit unions surveyed planned to implement full-service ATMs, kiosks, or remote teller systems. Advances in the available technology have certainly been one driver of this increased interest, but what other benefits can these remote delivery options bring to your credit union?
A Cost-Effective Solution
In an uncertain market, many businesses become more cautious with their investment decisions. One of the major investments credit unions put on hold are new branching initiatives. This becomes more common as credit unions have increased fears of being unable to get a full return from their branch investments.
So how are credit unions looking to maintain and increase their member service and member convenience if not through an expanded branch network? Remote delivery options can be an efficient and cost-effective way to expand your credit union's footprint. Whether it be ATMs, kiosks, or remote teller systems, any of these three options can provide increased access to your credit union and its products where members previously may have had to wait for a branching initiative.
Protecting Yourself from Fee Increases
Another issue that concerns credit unions is an increase in foreign ATM fees. Recently some of the larger banks have begun to increase their ATM surcharges. Most notably, Bank of America's surcharge fee was recently raised to $3. For credit unions that offer a surcharge rebate, this could amount to a significant increase in cost. Credit unions are hesitant to eliminate surcharge rebates, as it is an important component of their competitive strategy and member satisfaction. Luckily, remote delivery options can play a role in combating this issue as well.
Credit unions can also increase in touch points exponentially if, in the process of rolling out ATMs and kiosks, you also become part of a shared network such as STARsf, Co-Op, FSCC, or Allpoint. This expanded delivery channel network dramatically increases the number of sites your members can use surcharge-free, both increasing member convenience, and decreasing credit union costs.
Taking the Next Step
Implementing new remote delivery options can be an beneficial process for a credit union and its members. The members benefit from increased convenience, 24-hour access to their accounts, and additional service options as the technology offerings of ATMs and kiosks expands. The credit union also sees the benefit of these options in the form of cost savings and increased productivity in teller lines as members become more accustomed to the freedom and convenience of these remote delivery options.
Understanding the needs of your membership and the potential impact on your business model is critical in evaluating which remote delivery option is the best for your credit union. To learn from other credit unions that have already implemented each of these options, join us for Matching Technology with Member Service Strategies: ATMs, Kiosks, and Remote Teller Systems . Presenters will discuss what factors influenced their decision, their strategies for utilizing this technology, and what results they have seen so far.