by Darren Smith, ATM USA Powered by PAI
Originally published by CUInsight
As we enter the fourth quarter, many financial institution leaders are starting to turn their attention toward planning for 2025. With a myriad of options and new technology, it's crucial to prioritize services that set your bank or credit union apart while encouraging growth.
In this article, we explore several key areas financial institutions should consider when preparing their budgets for the coming year.
Expanding Into New Areas
One significant trend shaping the financial landscape is the exodus of big banks from rural communities. This presents a golden opportunity for community banks and credit unions to expand to new communities.
However, this expansion doesn't necessarily require traditional brick-and-mortar branches. Credit unions and community banks can leverage technology to provide services efficiently cost-effectively. Some alternative service delivery methods include:
Interactive Teller Machines (ITMs): These advanced ATMs allow consumers to interact with a live teller via video, providing a personal touch.
Expanding ATM Access: Branded ATMs, such as full-service drive-thru ATMs in parking lots of busy businesses, can play a crucial role in serving the community’s basic banking needs and attract new account holders.
Smaller, Modern Modular Branches: These affordable, portable branches are versatile and durable and offer a quick and efficient way to market for financial institutions moving into new areas or those wanting to cut costs and close traditional branches.
Digital Banking Services: Beyond the mobile app, technology advances now allow banks and credit unions to offer digital banking solutions that include live video, chat and virtual assistants’ consumers can access through QR codes.
By incorporating these technologies, banks and credit unions can extend their reach without the substantial overhead of traditional branches, allowing them to serve account holders in new areas more efficiently. And by partnering with a reliable vendor expanding ATM access or adding ITMs, and digital banking solutions are affordable and don’t need to be time consuming for staff.
Enhancing Branch Efficiency with Teller Cash Recyclers
For banks and credit unions maintaining physical branches, investing in Teller Cash Recyclers (TCRs) can significantly improve operational efficiency. TCRs offer several benefits such as improved cash security, increased accuracy and speed, and freeing up branch staff to focus on personalized service and cross-selling products and services.
Embracing Virtual Banking
To stay competitive, banks and credit unions should consider incorporating advanced interactive technologies into their service offerings in 2025. Beyond the mobile app or the ITM, there are a variety of digital solutions like virtual assistants, mobile chat features, and QR code-based marketing available today.
Virtual assistants provide account holders with easy access to get answers to their questions 24/7. QR code marketing can also generate faster connections with existing and potential new account holders. These handy codes can be used to quickly direct consumers to specific product pages or applications, providing instant access to promotional offers or facilitate easy sign-ups for new services.
However, QR codes aren’t just useful for marketing. They can also link to virtual branch solutions, which provide ITM-level capabilities without substantial capital investment. Some benefits include:
Video Calls: Give account holders the personalized assistance they crave without having to come into a branch.
Live Chat: Allow tellers or call center representatives to offer financial advice or answer questions.
Translation Services: Provide an easy way to speak to account holders that may not speak English as a first language without any miscommunication issues.
Advance Level Marketing: By using a customized QR code, marketing can direct consumers to loan applications and easily track the effectiveness of promotions.
By adopting these technologies, credit unions and banks can enhance account holder engagement and provide convenient, 24/7 access to services.
Diversifying Income Streams
As interest rates remain higher, it’s prudent for financial institutions to add non-interest avenues of income to their portfolio. Partnering with vendors that offer merchant services, smart safes and ATMs can open new revenue streams while providing additional services to businesses, attracting new accounts and deepening existing relationships – without additional work for staff.
Leveraging NCUA Grants
Low-income designated credit unions have a unique opportunity to access grants through the National Credit Union Administration (NCUA). These grants can be instrumental in adding ITMs or expanding ATM access – helping to meet the needs of a growing number of citizens.
Some independent ATM operators even offer valuable assistance in this area such as helping to navigate complex paperwork and, of course, handling the ongoing operation of ATMs and ITMs. This support can make advanced technologies more affordable for credit unions with limited resources.
As financial institutions prepare their budgets for 2025, it's essential to balance traditional services with innovative technologies and partnerships. By focusing on expanding into underserved areas, embracing interactive technologies, improving branch efficiency, and diversifying income streams, banks and credit unions can position themselves for growth and enhanced service in the coming year.
Remember, the key to successful budgeting lies in aligning financial decisions with the core mission of serving the community. By carefully considering these investment areas, credit unions and banks can ensure they're not just keeping pace with the changing financial landscape but leading the way in providing the services consumers want.
Need Assistance Getting Ready for 2025 and Beyond? Talk to Us About Innovative Solutions That Can Benefit Your Financial Institution.
Darren Smith, Vice President, ATM Management
darren@atmusa.com • 919-534-3232 • Schedule a Meeting
Craig Helmers, Vice President, ATM Management
craig@atmusa.com | 919-534-3233 | Schedule a Meeting