Credit Union Times: The Future of Self-Service: A 10-Year Outlook
The following article was originally published by Credit Union Times here.
Expert Opinion
The financial services landscape continues to be fraught with disruption. Branch strategy is shifting, members are demanding more seamless experiences and technology continues to reshape what’s possible. In light of these factors, self-service continues to become increasingly important in credit union operations and member relationships.
Looking ahead the next several years, and even out to the next decade, self-service will advance to bring smarter interfaces, deeper personalization and more inclusive service models. The credit unions that heed and appropriately respond to the following trends will be well positioned to succeed.
The Branch Reimagined
ATMs and ITMs continue to become much more sophisticated, evolving from cash dispensers to full self-service touchpoints capable of handling a broad range of complex interactions and needs. As more interactions transition to self-service, the branch is also shifting from a traditional teller-based transaction center to more of a consultative, relationship-driven service environment. Savvy credit unions will lean into this change even further in the coming years, striking the right balance of convenient self-service options and meaningful human support for more complicated needs to increase efficiencies and deepen member relationships.
Wide Reaching Impact of AI
AI has already begun to drive smarter decisions and efficiencies across operations, logistics and the member experience. Over the next decade, this impact will only expand and accelerate, transforming self-service from the inside out.
Consider predictive service, something the industry has talked about for years but has never quite managed to execute. Currently, when a machine needs to be serviced, employees in the call center are challenged to identify and coordinate the right person with the right skills to the right place at the right time. With AI-driven routing and dispatch, these components can instantly and automatically come together based on real-time data from machines, traffic conditions and technicians’ skillsets, making the process more efficient and accurate. The result is time and cost savings for the credit union and greater uptime and availability for members.
Another area in which AI will enhance self-service banking is through one-to-one marketing. A credit union might be able to advertise monthly CD or mortgage rates via the ATM to members today, but the experience is typically not very personalized or dynamic. With AI, contextualizing experiences and targeted marketing at the ATM becomes much more effective and precise. Over the next decade, machines will be able to analyze holistic member data in real time and then build an experience for them on the fly at the ATM, offering relevant messages, financial product suggestions or assistance.
AI will also become much more involved in member interactions in the coming years. While people are getting fairly comfortable talking to AI right now, this familiarity and acceptance will only continue to improve. AI-driven avatars to help members when a question or issue arises – or to offer financial advice – will become commonplace at the ATM.
Inclusive Self-Service for an Aging Population
As a nation, we’re getting older. In fact, by 2034, older adults will outnumber children in the U.S. for the first time. This changing dynamic is making it increasingly important for credit unions to facilitate more accessible journeys to address older members’ unique challenges. For example, future ATMs will likely offer customizations such as adjustable font sizes, audio prompts and more intuitive guidance. Such tweaks will allow credit unions to more fully meet members’ needs, regardless of age or ability.
More Proactive Protection
The ability to detect and prevent attacks on ATMs or Cash in Transit (CIT) today is highly reactive, relying on encrypting drives or securing physical hardware. However, credit unions are starting to embrace new strategies and smarter technologies to take a more proactive stance. For example, in the coming years it will become increasingly common to use AI-powered video analytics to detect and alert the credit union of potential threats. For example, a credit union’s camera may observe a truck circling the building, or someone tampering with a machine, signaling impending crime. From there, AI can take a number of actions, such as alerting local law enforcement or powering down the machine.
The next decade of self-service will be characterized by smarter automation, deeper personalization and more inclusive design, creating stronger experiences that enhance both efficiencies and member loyalty. The credit unions that evolve their strategies accordingly and embrace this evolution will be well positioned to carve out a strong competitive advantage for years to come.
Stuart Mackinnon is the EVP and COO of the Atlanta-based self-service banking technology provider NCR Atleos.