Webinar ITM Strategy
Welcome, everyone to. On IPM strategy, a look. At the capabilities, and benefits, plus. A live. Interview with an IPM. Partner. Of our skull, coast educators, Federal Credit Union. Wanna. Thank. You all for joining today, and. We. Have a great agenda in front of us, I wanted. To first recognize Cu. Resources. And. Their. Co partnerships, in this in. This. Webinar. Just. A few. Housekeeping. Items, here, a, recorded. Version. Of this will be available afterwards, also, if you look in your GoToWebinar, box. To the right of your screen to, quit to the right notice. There are a couple of, handouts. You can download. We're. Offering a white paper on branch. Transformation, 3.0, and also. A case study on Gulf Coast educators, Federal Credit Union but, don't read it yet because you're going to get the live in-person, version. With Caylor eager with, Gulf, Coast educators. Also. Please, if you have any questions, along the way in. Your. Questions. Pane please, enter those and we'll be covering those at the end of the end. Of the webinar. We, wanted to start with a few. Poll. Questions. Actually. Let's, introduce, our our. Panelists, here today our speaker's, here today so we have David Bolton branch transformation. Specialist, with NCR. David. Is one, of the foremost experts on how to implement, IT M's the strategy, the. Functionality, etc, so glad to have them today I am. The, chief technology, officer for F psi and, also. Previously a branch transformation, specialist, with NCR and I'll. Be covering, strategy. And the ITM ROI and then of course Taylor Hebert our guest of honor. Vice-president. Of icons with Gulf Coast educators. All. Right now. It is poll time. Go, ahead and go through a couple poll questions here just get the juices. Flowing. One. This. Is this, is kind of a question to ask before we get started but what do you think are the key benefits of, IBM's. Enhancing. Consumer, experience, mitigating. Risk lowering, cost of operations, or generating, remedy. Love, to hear your opinion on that. You. And Molly, are. Our, persecuted. Ministry this webinar. Here is going to provide us with some results if those have come in yet. All right hopefully everybody's had a chance to answer and we can pull those poll poll, question responses. Enhancing. Consumer experience. And Lauren, council operation is very interesting, on I'm impressed to see the consumer. Experience up there we are going to have Taylor talk a lot about that and how. He's been able to improve member experience and do, great with his Net Promoter Score, and such as utilizing the ITM obviously. Operations, is a big part of that as well generate. A revenue very, low on the on the spectrum but very. Interesting feedback, thank you all for that we have one more poll question, let's. Go to that one. You. So, what is keeping you from implementing, IPM s you're on this webinar you're hearing about it you're learning about it obviously it's maybe something you've considered up, to this point what, has kept you what, is the primary factor that has kept you from implementing, them cost, time. And resources, are just too much going on. Lack, of integrations. I you. Know I don't want to do dual entry or or I want advanced, self, service or, the. Final option is we. Don't think our members will like it. See. What you have to say about that. Taylor. Is going to touch on all of these as well as. Far as how. They overcame, some of these challenges, and what, they've done to, effectively. Implement their IT M's and and of. Course we'll touch on the ROI there as well. As, soon as we have some of those results come and we'll put. Those up. Lack, of integrations. Okay very interesting. I like. These poll questions because they're the. Answers are coming in a little differently I would expect expected, cost of course as a big consideration and the time your resources and member, acceptance, well. We appreciate your. Participation in, the poll thank you very much it's, very interesting to see your thoughts. We're. Going to go ahead and, let. David take over he'll take us through he wants to lay, the groundwork so to speak fill, you in a little bit on what, I cans can do nowadays the latest and greatest and then also. Kind. Of get, a kick started, and thinking about how they can be implemented in the different options go. Ahead David, thanks. Travis so, moving, into the first slide here it, aligns perfectly with, those poll questions, where. We. See that you, know 93%. Of you, are looking. To drive the. Member, experience so. Moe if we go to that first slide here so. What, what, different industry studies and this the ones not unique, we. See study after study telling, us the same things about. Your members and what they are demanding, and it's.
It's Really the top three are fast efficient, service, knowledgeable. Employees in, branch locations, so. A couple of things about this branches. Are not going anywhere. Branch. Transactions. Are actually on the rise over the last five years and your. Members, are demanding. Fast. Efficient service branch, locations, multiple employees, along. With these other items so, you. Just can't have a little, strategy it's. Really a holistic strategy, across. Digital. And physical. So. It's really key to differentiate yourself in the markets take these into account. So. Moving on to our to. Our next slide we see. Boston. Consulting Group. If. You just build this slide out Molly that'd be great so. Boston Consulting Group tracks a few, thousand, financial, institutions. And. When. They take into account our branch transformation, philosophy, we. See in, act on the. Bottom line up to about 30%, of profit. So. Those levers that financial, institutions are using to gain that kind of bottom, line are. What. We call our branch transformation, philosophy. We're. Working on repositioning, staff to. Be more advisory, they're, they're really driving, that member experience. We're. Also. Customizing. And delivering. Experiences. That, are tailored to your members so. That's really important, because everybody wants to be known and, everything. Is a, one on one interaction, now they're, they're taking their experiences, from Amazon and they're, expecting, similar experiences, and other channels where they interact and, we're. Starting to bring that into the banking segment, and then. Branch, designs we want to create designs. Transaction. Flows that. Start, with your member let's, remember in mind so, when, we think about the, technology, the software, and even the environment of a branch that all centers around the, member, journey. So. Moving on to the next. Next. Slide excuse. Me. What. We have top of mind with branch transformation. Is really, part of a bigger strategy I, like. I alluded to before we. Need to look at not. Only transforming. Your physical, presence but, how does that strategy join, up with your larger, strategy of. Accelerating. Digital, what, is your online mobile presence. And strategy, and then, how does that cross over the physical and most, importantly, how. Does you remember, interact. With those channels and move. In between them. So. That's really important, looking, forward, to, think of, your strategy. Holistically. From the members perspective in the, experience, that you're driving. The. The experiences, that we look at specifically, in the brain transformation, space really. Sit on top of our software and hardware platforms. That enable you, to drive. That experience. And, this. Is our lineup of our new, hardware. Platform, the 80 series and. If we past the next slide it's. Really the foundation that we can leverage to drive multiple, modalities. So. With. FTS I as. Your partner you're, making a good decision as far as hardware goes. Because. On top of this hardware platform, we can run what we call multiple modalities. Multiple. Ways to interact, with your member so. As, an, institution. The idea is not to force our members to. Interact, and conduct business certain, ways is, to provide options and so. People want to bank when. And where they want to bank they don't like to be forced into a certain channel, so. We. Allow, you to do that, through. Making, a single investment, in capital, expense, and, being able to leverage that investment across. Different modalities. If. We look on the left side of the screen here we, have our hardware platform. Working. And acting like an ATM through the ATM switch, so. That's, one modality, as we. Move to the right we. Have three different boxes, here all representing, a different modality, the. Top one being our eye TM our remote, assist that's, where there's a video connection, where. The teller, will, be centralized, which, gain efficiencies. It. Allows, the teller to use, our hardware platform, as their, hands eyes ears, and mouth, so. The. Teller is no longer having to count, money with her head down or his head down they're. More able to concentrate on the relationship. Building. That relationship. Creating. That member experience that's unforgettable, and by, the way creating, that member experience and being. Better at member service, you're, going to drive loyalty, you're going to drive more revenue so. That's why the platform, can also be a revenue generator as well, as working on efficiencies. Excuse. Me. As. We move down we have what we call advanced self serve so what, this is is when. We take a self-serve, transaction. And integrate, it directly into the court so.
Think About being. Able to come up to it and. A hardware, platform, ITM, insert. Your debit card be, authenticated, and then. Start, doing court transactions, so you can do things like. Deposit. A check or, deposit, cash and, then. Pay a loan or credit card different. Accounts that may not be attached, debit, card because again we're taking the. The. Member transaction. And looking, at the entire. Relationship. That's, within the core so. Again, this is this is really critical for your members to bank when they want so I can come at midnight to, a self-serve, transaction. Trend. Core, transaction, and pay. A loan or, pay a credit card or transfer between accounts, that aren't attached, to my debit card that's, key and. Then. Going down the. Local assist this. Would be a self-serve. Integrated. Transaction, with, an optional tablet, assist so this would be for Lobby units interior, units where. Your, staff would. Be working. As an advisory, role and this, is really key where you. Know who is in your branch who's. Interacting, with the technology, in the branch and it gives your staff the ability to interact cross-sell. And upsell when. Necessary, it. Also allows, them to do things like account maintenance. Account. Servicing, updating, it, also allows, them to build, deeper. Relationships with, members that are in the branch that, otherwise would just come in and walk out now you have visibility to actually who's in the branch and they, can make the decision to approach or not. So. I touch briefly on that that, very. Top remote. Teller box, as. You know the 95, percent of our customers today are. Running in what we call a dual key and I, know when your concerns was lack of integrations, on the poll question, and I think this might be where it's coming from so. In. A dual key environment, that is a teller, a remote, teller situation, that is not integrated, directly to the core. So. Your. Centralized tellers, are keying. In a teller platform, as well as the core platform, NCR. On certain cores can now offer. Integrated, approach to that remote teller where, they, key in a, single. Platform. And, the, teller and course system or one of the same so, it eliminates that dual key it. Also helps with some balancing procedures, as well as mitigates, the. Risk of errors within that book. So. Moving. To the next slide. You're. Not alone so we, have over 400 IPM clients it's closer to 500 now. We, like to say we had an IPM in every state so. You may not see a logo in certain states but these are where these, financial. Institutions are headquartered and, we. Have over 5,000, items in production, so. Branch transformation, using items, is not. New and. We. Have quite a few financial institutions, differentiating. Themselves from, their competition with, this technology, a. Couple. Of quick ways of differentiating. One of the main ways that we see differentiation is, allowing. The item technology, to. Expand, business hours so you can stay you can stay open later and open, earlier and, you're. Able to do that with a centralized, staff without, necessarily having a branch open so, you're able to efficiently, expand. Your hours without necessarily increasing cost. So. Moving on to the next slide, these. Are just a few examples of. Purpose-built. Branches, and I. Said, branches, right, so if you look in the bottom left hand corner of this river mark that is a branch that is a leaf behind and that. Is a a full-service, atm. But it's also an IT M where you can do about 95 percent of, teller transactions. Now, when I said 95 percent, think. Of the 5% transactions. That we will not do through the ITM things like Volcker coin or money. Bag drop-off, large. Commercial. Transactions. We are not going to be doing good idea but. For your retail business your. Small, business. Customers, or members we. Can do those transactions. To the IceCaps no problem. Regions. Bank just above that has, done a good job of meeting their customer. Where they live as you can see there's a neighborhood behind that. Particular. Drive up location, and that, is all items, as well. You. Can you can also go. Where your members are whether it's at a university, campus, at. Dormitories. Within. Healthcare medical. Medical. Campuses. Whatever it may be so now you have, you can afford to, build. A branch. Where. Your members are living and working and. The. Next slide shows a couple of good examples of.
Build-outs. Within. Branches. The. Left being in a Student Union itself and the right being river mark, as. You can see the the interactive teller machines are over to the right and notice, the, black, line through, the middle of the store there that. Is a de gate so. The. Branch is open, dye, teams, are are the. Video tellers, are active, but, after hours the branch can close all the staff leaves and then, you still have access to teller, transactions. Through. Through. Debit card entry so. It's really important, if you're going to deploy the technology to. Think about access. So. Is it going to be in the branch if it's going to be in the branch is, it going to be accessible, 24 hours or a certain time. Obviously. If you deployed drive ups that's a 24 hour access as well. And. Moving, on to the next. Slide I'll hand it back to Travis, for strategy. And ROI. David, thank you that's. Great, a few key takeaways, from there is. That NCR, has added, a significant. Amount of integrations, that enable, both, removal, of removal, of the dual, entry and also the addition. Of advanced, self-service, transactions, so thank, you David for kind, of laying that groundwork I wanted to talk a little bit about the. Project so if, you. Decided that I TMS, was something you were interested, in and wanted, to move forward with what, would that project look like and also how do you justify the. Costs associated with it so, let's, talk a little bit about the timeline. Eventually. You're, going to want to move forward with IBM, I'm confident. And hopeful. What, we'll want to do before we how, to kick-off the project, is make sure that you go and visit a few locations talk. To a few ITM. Credit. Unions that are using IBM's, and and, understand. Their strategy, ask them, the good the bad ugly, and, and, essentially. Learn. All you can from, those who have gone, before you. Also. We will make, sure that we've worked out your strategy with you it's, a really critical, part of the process is to ensure that your strategy is effective, and that when you implement these items, that you'll be able to get that. Your members will use them that they'll satisfy, their needs and that they'll. Also help you accomplish your goals and, so we walk through every step of the process with, you we share our thoughts and, opinions we, will never tell you what to do but we definitely try to guide you along the path to success. ROI. Is an important part of the process as well. Essentially, everybody's, got to go to their board and say this. Is going to work and and this is why we can justify the cost I cans, aren't necessarily, cheap. They're a lot cheaper than a whole, branch or they're a lot cheaper than then. Some. Of the other things you're trying to do but. But, they're, definitely an investment that has to be justified well, we make sure that we've worked with you on your ROI, so, that when you go to the board and that, you can feel comfortable that. You'll, be able to get a great return on your ITM, investment. And then from there there's obviously. Signing. A contract and and making. Sure that your infrastructure, is ready completing, all the technical requirements to, get set up to get the server set up etc, and. Then, we wait for the hardware to arrive once the hardware arrives, we bring that live with you we come on-site we, do a training, we. Make sure that you and your team understand. How to balance. The IT ends and and and, do all those critical, pieces. Of the day-to-day with the ITM the, overall process is, about five months from, when you say we're ready to go to, when. We can go live with the ideas a lot of that has to do with the hardware delivery, timeline. But, in general just know that I TMS. Are not a just, a plug-and-play, that it takes some strategy, it takes preparing, your team it takes testing. Preparing. Your infrastructure. It's. A project that will, work with you on and will make it easy but it does take a little bit of time I, wanted. To circle back on some of these pieces of the of the the, timeline, that, I think are most critical so, let's, talk about the strategy. I'll. Share an example this. Molly.
If We can go to the slide with the micro. Branch inside, the hospital great, this. Is a customer. A partner, of ft sis and they've, implemented, AI TMS, and when, we were going through the process they had in their mind an idea of how they might want to implement ideas they. Wanted to retrofit, a current. Branch and we. Went, through that, strategy with them and it sounded pretty good but we thought that there might be something better for them so we went out and visited their branches, and their ATM locations and we, happened upon an, ATM, inside. A hospital that. They had. Serving. A good. Portion of their member base who didn't have. The time to go and visit a traditional, branch during the day but was able to do some. Transactions, at the ATM what, we looked at that and thought this is a perfect opportunity for you to get a great ROI you can essentially, add a branch, in a convenient, location. Location. Serving, a high-value. Customer. Base that, could really utilize the convenience, of having a branch close and so, they. Change their strategy, from retrofitting. A current existing, branch to adding, a branch inside, this hospital now they had a little cubby here to the left you see the picture that's where the eight the ATM, was they, put a controlled access door on there they opened, it up and put a window and put my TM in there and they're, able to essentially. Have a branch in an area where they they didn't have it before and their members can do more transactions. So. That's why it's important for us to really focus on the strategy, to hone in and to work with you on that to, ensure that when, you do implement IT ends that you get a great bang for your buck right off the bat I also. Wanted to talk about the ROI or the business impact that items will, have. When. We think about I TMS, and I was I was glad to see in the poll question, that some of you said I'm. Considering, IBM's and because, of how it will improve the member, experience. When. IBM's, first came out I think a lot of people look at them as a way there's just decrease in there FTE we can centralize, the teller, staff we, can move more transactions. To self service or event self-service. And we, can decrease FTE and expenses. I'm, glad to see that all of you out there understand, that an. Important, piece of the ITM puzzle, is pieces. Of the icam puzzle have to do with member experience. Increasing. Revenue, and and. We'll let Taylor talk a little bit about that but, but. Essentially, iTunes, helped to increase revenue by attracting, new members through the convenience, of additional branch locations, and extended hours and also, how you change the culture in your branch to be more focused on sales and advisory, as opposed to heads down counting. Cash and not, having a face to face transaction. With your member and, being, focused on operational overload. So to speak and an, IPM, is obviously an important part of helping, shift, to a, sales. And advisory culture so, those are some of the pieces of the ROI and when, we work with you on your ITM strategy, and and helping you figure out how it can be effective, we want to make sure that you take all these things into consideration, and that when, you are moving forward with your ideas that, you're getting an ROI that's really, going to pay for itself, IPM, you, know so in the end you'll say I Kim's, they work offensive or more, expensive and say you, know traditional. ATM but they were worth it and that's our goal in helping you understand, the ROI and how can impact your business. Okay. Well let's let's, get to the real meat and potatoes of why we're here the good stuff, Taylor Hebert with Gulf. Coast educators, Federal Credit Union, we're going to talk to him a little bit about. Their. Experience. Implementing, items, why. They implemented, them the successes, they're having so Taylor, thank you for. Taking the time to be on the on the webinar with us today we, thought we'd start but maybe you could just lay a little bit of groundwork tell us a little bit about Gulf.
Coast Educators, Federal Credit Union. You. Know what what led up to this ITF decision. Sure so, first I want to say typically, I'm on this side of the camera so um just. I now. Have a much deeper appreciation for, what the IG and tellers do every single day, so. For us our, our. Story, I guess. First we kind of talk about credit. Union itself so. Currently, we have seven, branches, we've. Got twelve I teams that are deployed and by, the end of the year we'll deploy another six, ITM machines, and. We have six tellers and we're going to grow that but right now we're operating at you, know for every teller we have two machines that they can serve so. To. Talk about our story and how we kind of got into. IBM. Game I guess. Gulf, Coast educators, is they weren't, educators, only educator, in their family only, a credit, union based, in. The Houston area I know I saw some of the attendee lists they've got some neighbors that aren't attending so how you guys doing but. We. Were founded in 1948. And. From 1948. Until 2014. We served three counties we served Harris County Brazoria, County and, Gallatin County and then. In, 2014. We applied and we, were approved to expand, our charter and what, that allowed us to do is overnight. We. Added five more counties, into our charter so just. To give you an idea of what. That meant to us that. Was, 4,500. Additional square miles of territory that, we can now serve, with. In that area we, had about one, and a half million people and amongst. That group we, had about 42,000. Individuals. That were actually educated, so people that were potential, members that we could now tap into so huge. Abundance, of opportunity. Presented, itself to us pretty. Rapidly as well so for us we. Said this is great, this is going to give us an ability to expand because our decision, to maintain a, closed charter, where we only accept, educators, and their families to, make growing, our membership, very difficult. So, for, us we looked at we need to have an expansion a growth, strategy that's, going to allow us to tap into these new areas that are now part. Of our charter well. We know that building. Branches, is pretty expensive in the traditional, sense so we knew we had to do we had to take a different approach.
And Kind. Of around that time on early. 2015. FTS. I came. And visit us at our headquarters in Pasadena Texas, and. Honestly, we we, were very I, guess unaware. Of I TMS at that time or even what they could do but, FPS. I introduced us to the items, we've seen some of the self-service. Machines that, some of the other credit unions were using and it seemed like it may be a little bit of a disconnect there we'd really like to have our members still be able to talk to the. Gulf Coast educators, employees, so. FPS. Eye comes in they introduced us to the. Items. And immediately. We say okay well this looks like something that could work for us we. Explained to them our position where, we were at the fact that we wanted to expand, we wanted to tap into the new markets that we. Were able to now and increase, our presence footprint. All of that stuff and then, we started working with ft/s eye on developing, and strategy, and it, was specifically. A branch, transformation. Strategy because, we knew that we, weren't going to be able to do what we wanted, if. We just build traditional, branches they're costly, they took a long time to build it's. Just not, something that we want to get into so we worked with F GSI closely, to. Develop a branch, transformation. Strategy F. GSI, we literally flew from coast to coast we we. Flew out to Monrovia to, fgo sized headquarters, we met with the folks there we went to Portland, to. Visit the credit union up there River mark and to see what operation, they had going on very cool operation, very cutting edge very. Tech heavy up there and then, we went to coastal, community, in. North. Carolina and we. Saw the operation, that they were running it's. Much larger they've. Been iTunes, I think a lot longer than at. A time when I mean years. They've, been doing ITM so we, were able to kind of pick up things from River Mark and coastal. That. We liked and. So one of the things that we really liked about coastal, is the fact that they, deployed, a test lab so, they had an IgM machine in the test laboratory, type environment, so they could go in. Perform. Transactions, introduce, people to the machine and you know introduce, employees to the machine so, we took that said let's, do that let's order a machine and let's. Put it in a test environment and, let's, get folks used to it because. All the things that you're probably thinking as all, the in terms of this webinar it's, costly, all. Those things but the tangible, things right the, thing that's not so tangible is housing my membership going to perceive this you know and, for. Us that was a that was a big issue because. We're so focused on the member experience and, the service level that we out for our member we, didn't want there to be any drop-off, so. We realized very quickly that we were going to have to. Get. Our first we, were going to have to get our, staff, comfortable. With using the items both. As a member would use it and then back office as well so we we, purchased, an IBM machine, and, we had it sent to our, our. Look our headquarters, in Pasadena, and we, started having our our, employees, used and then we had a set of things in the back office and I won't get into the, specifics about, the tech side of it I can, do that off you. Know whenever if someone wants to speak outside. Of this absolutely, and I also wanted to bomb thinking about that invite that and send that invitation to anyone that wants. To meet and discuss this or ask questions, I feel. Feel, free to contact me I'd be happy to to, talk to you about what our experience were like what our journey was like so. We bring the machine in we. Wait sure and go out of our way to share. The information with our staff first because we realized if you're, going to have this be successful, you really need to have your staff believe in it and be ambassadors to your members so.
That, Was one of the first things we did the, second thing we did is we worked with our builder. To redesign. Branch. Layout. Similar. To some, of the things that have been touched on earlier we. Decided. No more traditional, teller line. We're. Going to, place. ITM machines in our lobby will. Build branches, that have vestibules, we will put pike in machines and those vegetables, to allow our members to have after, our access, when, we close our lobbies and we're, going to house. Our branches, with Universal. Employees rather than traditional like. Travis said I think use the. Description. Of head down counting, cash we want it to be more engaging we. Wanted our members to have a good experience when they walked in so. Worked with our builder to. Design. A branch that was going to have all those elements and. I'm. At, first the designs that we came back with they're so foreign to anything that we look at in terms of a traditional, branch so we, had to kind of there, were some growing pains we had to get used to and comfortable with that. So. We. Also some. Things to be aware of I, would. Say you. Know you mentioned, the board so. Absolutely, we actually had some resistance from some of our board. We. Definitely had to sell them on the idea I don't know you, know some of them are maybe a little bit more old school and they thought the idea of a branch transformation. Like why do you need to transform a branch you know so we really had to work hard to sell that ideas and then we. Also had. To sell the idea to our membership and the way that we did that is we, were just very upfront and, very open, and transparent in, fact one, of the things that we did is after we had hired our ITM, tellers we. Actually had one of the ICM tellers, write. An open letter to the membership, explaining. What was going on and. Why we were choosing to. Deploy. ITunes and why this was a strategy, that we were going to use going forward and the. Message was this, is so that we can have more Gulf, Coast educators, branches, in more places and do it in a way that's affordable.
And. So once, we shared that message everyone. Was on board and that really helped us with. The implementation, of the branch transformation, strategy and the, iTunes so, the, big picture here is the the branch transformation. The, items, are what can allow you to. Get to, to. Implement, your branch transformation. So for us again it, was about. Building, more branches, in more places, and, do it in a cost effective way so for us what we chose to do is we. Looked at the places that our members were visiting most frequently, they, were going to refill spaces, so, we found, you. Know we did demographics, research and we found locations. That made sense for us in. Our case we also wanted to look at, concentration. Of, school. Campuses. Universities. That were within a comfortable, driving distance, of that particular, branch if we chose to to. Build it in that retail center we. Also chose, to change. Our hours so that they would mirror hours, that are more like a retail center so we adjusted those as well and, so when, we made the decision of where we're going to actually build those branches that's, how it was done to put them in retail centers. Of some, more things to be aware of. You're, going to get some feedback from. Members. That, you know not necessarily positive, I know in one of these slides we have some comments from members they're super. Positive and we did get those but, we also got some some comments, from members where, maybe. They thought who, are you doing this to replace people I don't, like using the technology. You. Know that, kind of criticism, or feedback so. What we did is we were sure to make. Sure that all of our staff were trained on how. To use an ITN and we, had our n branch staff walk over for people their first time when, they were using machines walk the member over and, guide, them through the process show, them how easy it is to use, and. You know what. We were started to see is that after. That first maybe once or twice that, remember then immediately goes to the ITM machine and uses it no problem, so we saw some some, good results with it. Some of the things that we're able to do, since. 2015, we have built two branches. We've. Also, two. Branches and retail centers we've also been able to put. A micro branch we, really, it's just a machine but we were able to put it inside of a school, district facility Pasadena, ISD opened. Up to us and allowed us to place a machine inside of one of their facilities that high traffic that's a training center so, we see a, lot of transactions, that come out of that Center as well.
You. Yes Travis. Do, you have any questions. You want to throw my way. I do see one of the questions on here is okay if we just go straight into Q&A right now. Well. Taylor I wanted, to, touch. On some of the numbers so if. Molly, if you can move to that slide with the eight boxes there so. Pretty. Impressive. What. You were able to accomplish I know there are qualitative. Results right, and then there's quantitative. Results, some of these quantitative, results, are pretty amazing. And. Obviously, I TMS. Are not the Silver Bullet they don't just you don't just implement ideas and all of a sudden you get a 43%. Increase in net income. But, maybe. You could touch on just a couple of these numbers I mean how, did I can't contribute, to an increase in that income how do they contribute. To an increase in deposits. And and in assets, and improving URI, i, guess, you know efficiency, ratio obviously, is a product, of improving, improving, revenue, and decreasing, expenses, but how. Did I teams do that what, was it that the ITM, helps. You how do they help you do that. Yes. So so kind of like what you said it's definitely not a silver bullet but, what it is is it's a key it's an integral part to to. Our strategy, our branch transformation, strategy branch. Transformation. Strategy so what I would say is that, ICMS, gave us a technology, that we could then leverage, to be able to get out and expand into the market, spaces, that we want it to be in and that, expansion, then generated, these opportunities, that allowed for this at the same time that we were doing a branch transformation. Strategy we, also were working things out as far as streamlining, the way that we do well most pre-approvals. Stuff like that so, we had that going on in concert, with our branch transformation. Strategy but. Remember we're talking about net income here so because. You gain efficiency. With this type of branch. Transformation. Model, that. Helps from net income that helps in the efficiency ratio the. Deposits, you know that that has to do with the ability that we're able to now tap into new territories, new markets, bring. In new members and, bring in deposits, so again. It's it's, not going to be the silver bullet solution but. It is going to be like for us like, the idea, that we can help us get that momentum, going where. Know it can help that get that strategy, launched, forward basically. So. Okay. Yeah, I see on this one also we've got we were able to extend. Our hours Monday, through Friday from 7 a.m. to 7 p.m. variety, and machine so we. Wanted to make with that in mind we. Wanted to make sure that any you know that affects. The way that we design the branch because we want to give our members accessibility. Because. We close our lobbies prior. To 70, in then we open them after 7:00 a.m. at all of our locations so, this, gave us the ability that a member could still come in from, 7 8 o 7p Monday. Through Friday and be able to speak to a Gulf Coast educators, employee so. That's. Great well. You Taylor you mentioned there's some questions coming in everybody wants to ask you questions so, yeah. If. Somebody mentioned, somebody, mentioned, you. Know do you have to be an, IT, expert in, order to implement ITM, you. Know what was the process like from, a technical. Standpoint in. Your proficiency, as far as IT. You, know I key, language and speak and talk and know-how and and knowledge.
What. They're saying is I don't look like an IT guy an IT tight, IT, type, tailor so how, did you get all this figure out yeah. So. We. Lean heavy on F GSI we, leaned heavy on NCR, they'll. Walk you through the process. They. Came in they helped, us we, leaned heavy on our IT department and, to answer I think that the question specifically, was is my background and IT. No. Actually, the cells of cert my background was in sales and service but, for the same person ask that question my. Background was in sales and service it wasn't an IT. The, actual, specifics, and yeah you have, to build the thing up as far as the servers as, far as like the tech specs as far as the communication. Because you're going to consider okay, well we're running video over, these lines now so, what's, that doing as far as I don't know I don't, even know the correct terminology, what. It is there but I understand. Big-picture, stuff so I could go and talk to my IT guys be like hey this. Is this, is what needs to happen so we leaned heavy looks very much a collaborative, effort but, I will say this FTS I didn't see our work monumental. They were huge and helping us get this thing going so they're not going to just you. Sign up and then you're on your own as far as implementation they're, there with you every step of the way. Henry, I don't think you need to have an IT, background or. Specifically. With iTunes, to have something, launch, the. Server build-out was pretty labor-intensive. For. Our IT department blankets. Fed a link heavy on NPR for that and gather them to it so yeah. Great. Hey, we also had a question about how you implemented iTunes, and, where did you implement them in the drive. Okay. So what we did first was, we. Actually. And. I don't necessarily, recommend this because this is not to me from my experience, this is not the easiest way to do it maybe not even the best but, we. Were. Super cautious about, the impact it would have on our membership, so what we did before, we actually thought those branches that I spoke about we. Did kind of like a retrofit. Where we went, to two, existing, branches. And, we put two machines in the lobby of, each one of them and we. Had that set, up for almost a year maybe, and we, just wanted to introduce it to the membership. Let. Them gain some familiarity, with it and, those. Two environments. Kind of also served as a test environment. So, we, had that set up first that's how we first deployed, and rolled them out we. Do have we. Do have to, locate we have a location, that has one in the drive-through we. Have not completely replaced, our drivers, with iTunes just, yet I know we're, talking about, potentially. Doing that in the future and. Then we've also built, like. An island drive of ITM with the canopy a signage. And all that at one of our branch locations. Great. Appreciate. You sharing that I've. Been to your drive ups and they're. They're really well utilized, so. The. The, member feedback so we had a question here about culture, and I think that this ties into member. Feedback as well. How. Did this change your culture and, you. Touched on it briefly but, how does this change your culture and what was the member response to that change in culture. Well I think well. First of all I guess, if, you're worried about it changing your culture really got to know what your culture is as your credit union and I know in the credit union world we all say like yeah, I services. Our focus services, are focused member services, at the forefront but I feel. Like that at our credit union we really took that serious and, so. One, of our corporate goals is we actually we. Track our Net Promoter Score, and so. What. We've said is that you. Know by the end of the year we want to make sure that we've maintained, our Net Promoter Score, at or above 85. Which, if you know about that promoter scores that's pretty high so we set the bar high for so I think right now we're about 90 so. Net Promoter Score, of course being build the. Universal, measurement, of service how likely would you be to recommend, so. That's. One of the things that we made sure to track so, as. Far as disruption, to the culture. Again, we, were upfront we told the. Tellers all the stakeholders anyone, that would be involved why we were doing this we didn't try, to keep it in the shadows we explained to them that this is part of the strategy to be able to expand and serve more members so. A. Lot. Of folks are concerned like what's this going to like, replace. Tellers, or people going to lose their jobs no, actually, the opposite happened we actually created a new department, we. Created a new position, and. We paid them more than a teller and that's another thing that I think I'd, like to touch on is the fact that picking, the right talent, is essential, especially when you're first starting the site you have to have people that are very much.
Like They're, cheerleaders so to speak for. What you're trying to do they have to buy in big. Time so. We. Were careful about that and we were selective, and the. Other thing here is that. With. Our set up I don't, think I mentioned it earlier but we, really, liked the fact that we, were able to centralize, the tellers and so, we built a teller studio. Where. We house that we call it a teller studio it's pretty, much a call center but, we. Built a teller studio, where we house them at our headquarters, and from our headquarters those, tellers are able to you. Know service machines, that are at any one of our branch. So. I mean that's huge that's, a that's powerful, you know like the fact that there's. Huge cost. Efficiency, in doing that but, also you. Know we made sure to, the. Coaching, side of it and this is getting into, way more of the specifics, but once you get the once. You get the project, rolling and you have it implemented. You. Really have to you. Really have to focus on coaching, them and because, it's unusual for, tellers. That have never done it before to, just be on camera all day there's little nuance things that happen when you're on camera that you never even thought of so for. Us what we really liked is that all, of the sessions are recorded so as far as coaching I was. Actually the one I would bring the tellers in and we would sit down and watch the video and I would just have it play and I wouldn't really even have to coach too much they would see themselves on video and sometimes you know they were you. Know mortified. But they, would just see little things that they would do and they would autocorrect, to fix it themselves so. That's. Kind of how we addressed that it wasn't really it wasn't disruptive, to our culture. Great. There's a few more questions I'll answer quickly we're out of time basically but we. Had a question on coins so the are a coin is an option, is. An option with the ITM. But. It's I would say about half of our partner. I can. Partners they do implement with coin and about half do not, the. Coin that is being dispensed has already been cleaned by the cash, service provider so, we don't hear about coin dispensers, jamming a lot but it. Is something to take into consideration that's. Something we'll cover with you all in the in the ITM strategy, session that we do with you all to ensure that your strategy is effective.
We. Also had a question about. Let's. See here the. About. The cost of ITM so obviously, hey, we can help you understand. The cost of ICM and, but. I think it's more important to look at the ROI you know I had somebody come to me once and say well. Wow these items are more expensive than an ATM I said well yes but they're, less expensive than I'm building a full branch right and so, Taylor maybe, as your last question or you. Know kind of answer here that you can give us I assume. I see M's were a big, investment but in the, end, what. Would you say to somebody who is questioning, the overall investment of ITM they have a decent strategy, in mind but they're saying boo it's, it's, costly or more costly than an ATM what would you say to them what would be your answer. Well, I mean my answer would be that you know it. Can be even. More costly if you don't develop a strategy if you don't round out you know and know specifically. When you go into what you want to achieve with it yeah absolutely could be costly but also as a, side-by-side comparison, you. Know think about what you would pay for an ATM versus what you're paying for an ATM and then there's. A difference there sure but then think about the, comfort of functionality. The capability, the reach I mean for for, example. We. Could easily just put an ATM, machine inside, of one of those school district facilities, but we didn't just do that we put a machine that had one of our tellers so when, we have a member, or a potential member walk right up get that but they're, talking to someone, that go coast, educators, so, I mean that's huge you know and yeah. Something. Else that we're looking at is you know everyone's, talking about the Windows 10 well what we have in mind is any, ATM, that we have in our fleet. We're. Not replacing it with an ATM we're not upgrading, it we're replacing it with items, and those. Items that we're ordering by the time they're your Windows 10 compliant, so, that's another thing that is, I think it's timely and that's something else that that's worth considering as well. Great. Well, tailor very. Insightful. Really. Appreciate, all. The information you shared, we, still have questions coming in but unfortunately we, we can't keep going so, anybody.
That Did not get their question answered we apologize, and we'll, follow up with you directly and ensure that that does get answered, wanted. To let you all know that you can see I, cans, in action at the FT si booth at the the. Cornerstone credit union annual meeting coming up. Just. In well. Next week ten days and. We'd love to see you there please stop by you could see VI tiens, we. Can give you a quick demo and answer any additional questions you might have, thank, you again David and Taylor and thank you all for participating and. Listening, in to this webinar again. A webinar, according. Will be available, and also again, the, documents. Such as the Gulf Coast educators, Federal Credit Union, case study and the branch transformation. 3.0, will be available as well afterwards so, thank. You all we, appreciate the time and and, we, will hopefully talk to you all again soon. You.
2019-04-19 14:24
