The State of Branch Lobbies in 2024
The banking landscape is rapidly changing, but most banks and credit unions have this in common: lacking systems to measure lobby service. Without the proper systems, it is difficult to gather the proper data to best quantify branch help.
After the circumstances of 2020 and 2021 saw dramatic increases in digital banking interactions, those numbers came back down to earth in recent years, and the physical branch is reclaiming its crucial stake in banking. Here is what your financial institution needs to know about the current state of the retail branch, as well as how your lobbies can stay prepared.
Branch Traffic Is Rising
While COVID-19 forced banks and credit unions to make strategic changes to the customer experience in the short term, branch traffic was never going to maintain the decreased levels of 2020 and 2021. While digital banking is steadily rising for younger demographics, data still suggests that banking customers value the in-branch experience, especially with higher-level transactions. As a result, branch traffic nearly doubled between 2020 and 2022 as customer behaviors regressed to the mean.
In other words, digital banking is still rising, but COVID-19 was a significant outlier. With that said, banks and credit unions are faced with the same problems their branches felt before the pandemic: rising wait times.
Branch Wait Times Are Rising - For Smaller Institutions
While the hiring crisis that plagued many financial institutions in 2022 and 2023 has tapered off, banks and credit unions are still struggling to hire and retain qualified staff. As we get further away from 2020, financial institutions are due for a significant increase in wait times when compared to pre-COVID wait times, if they aren't already experiencing it.
In 2019, the average wait time for financial institutions in the 90th percentile or better in wait times was 2:10. In 2022, that number was 0:35 seconds. That delta doesn't exist with financial institutions in the 10th or worst percentile, as 2019 wait times averaged 9:34, dipped under 7:30 during the pandemic, but quickly rose back to 9:37 in 2022. Why such a severe delta?
Not only do branches that struggle with higher wait times lack the necessary systems to track such statistics adequately, but they also lack lobby management tools that help decrease wait times. Studies show that the presence of digital, tablet-based concierge tools can cut wait times by 20% alone. Tablet-based systems, along with digital tools like appointment scheduling, help to create better traffic flow within your branches and decrease walk-in traffic to alleviate longer wait times.
Service Assist Times Are Decreasing - For Top Institutions
Service assist times are another area with a significant delta between the top 10% and bottom 10% of financial institutions. In 2022, financial institutions in the 90th percentile or better averaged under eight minutes in assist times, while the 10th percentile or worst institutions averaged nearly 35 minutes.
While concierge tools help with wait times, they most notably improve service assist times, as they better identify customer needs and match them to the right employee quickly.
Is Your Financial Institution's Lobby Prepared?
For many banks and credit unions, being a top 10 financial institution may feel unattainable. Without the resources of bigger financial institutions, how can your bank or credit union provide top-flight service to your customers? Through innovation. BluCurrent Credit Union didn't have the budget of big banks and credit unions. By partnering with Invo and deploying digital service tools such as tablet-based concierge and appointment scheduling, they saw their average wait times cut in half and are better than the 90th percentile nationally in average wait times.
Not only that, but they boast a 4-to-1 FTE among employees. Translation: Their wait times decreased without adding significant staff. Discover how they did it or schedule time with a Solutions Consultant at Invo to learn more.