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5 questions to ask before buying a video teller device

August 19, 2013 by Terrina Rishel — CEO, ATM Authority, LLC

Gone are the days of selecting an ATM "box" without the need for complex evaluation. Purchasing a video teller device requires a different mindset; one rooted in a comprehensive strategy.

Before purchasing a video teller device, consider:

1. Is a proven solution available?

Choosing the correct partner is always important, especially when investing in a long-term strategy. It's critical to weed through marketing hype and get a clear idea which solutions are actually delivering results in the marketplace.

During the due diligence process, ask not only whether current FI/users are satisfied with their implementations, but also whether they intend to expand the use of the solution.

I believe actions speak louder than words; widespread use beyond a pilot is one sign that a solution has met expectations and is worth further investment. When manufacturers have stalled (or failed) pilots, it's usually a sure sign of an underlying major flaw.

2. Do video teller solutions maximum the consumer experience?

In order to maximize the consumer experience, it's important to understand which channel will be targeted with a video teller.

Currently in the marketplace, the major product distinction is a remote-assisted device where the consumer can be serviced with the teller in control, compared with an ATM that allows a consumer to have a conversation via Skype.

It really boils down to an FI's philosophy regarding how best to deliver a positive consumer experience. It's important to consider whether a particular device will improve efficiencies by allowing migration from an expensive traditional teller transaction to a less expensive remote-assisted channel.

Which approach will appeal to consumers that are not comfortable using an ATM? FIs have used ATM networks for decades to attract convenience-driven consumers. Will adding Skype capability to an ATM allow an FI to reduce teller-line traffic, customer wait times, and leverage branch staff? What does each offering really achieve?

Understanding the differences between assisted and self-service consumer profiles is the first step to correctly targeting audiences, while maximizing the consumer experience.

3. How will employees be affected?

It's critical for leadership to clearly outline and communicate the impact on employees when implementing this solution.

Remember years ago when the media spun the hype that ATMs equated to the "death of the teller job"? Similar discussions are taking place today regarding video teller devices.

It's true that many FIs have been able to deploy remote-assisted devices and reduce teller staff. However, many have reallocated their tellers to other roles such as concierge or product sales. Moreover, teller attrition has been dramatically reduced; with one FI experiencing a decrease from 30 percent to 5 percent — which they attribute to increased physical security and employee engagement.

Aside from tellers, many other employees will be affected, such as branch operations, IT, HR, and the like. Setting proper expectations and preparing staff in this ever-changing technology environment is an important component of a successful video teller implementation.

4. Is there a clearly outlined set of goals designed for measurable results?

A robust video teller solution has the potential to transform entire branch networks. However, there are many different ways to use this technology, running the gamut from a single unit to reach a remote area to a complete teller-less environment.

Is your goal to improve your drive-thru experience by eliminating pneumatic tubes? Are you looking for ways to reduce fraud and risk? Do you want branch staff to be focused on sales and service?

Once you have a clear set of goals, the stage is set for a more in-depth analysis of products, and ultimately the implementation of the proper solution.

5. Will incorporating video teller devices change the strategic plan?

A branch transformation solution can wreak havoc on any best-laid plan. Its ability to affect most aspects of an FI will necessitate an assessment and possible adjustments to strategic planning.

Moreover, obvious effects on capital and operational budgets will require a lengthy review and prioritization. After learning about the positive impacts of video teller devices, many institutions have reallocated new branch funds to expand into markets without the traditional bricks and mortar.

Branches have looked the same for decades, lacking a clear way to eliminate teller lines while still offering personal service — until now. The technology has finally been developed and tested, with case studies revealing positive results.

FIs can dramatically increase market share and improve their consumer's experience if they vet each solution carefully and create a comprehensive strategy.

Innovation