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When coronavirus cases started to accumulate in the United States, banks and credit unions had to adapt quickly with safety of both staff and customers in mind. But just as state and local reopening plans have varied greatly, so too have the ways financial institutions have entered into this next phase.
We may still be far from what is eventually recognized as the “new normal” for consumer banking. But you can anticipate that some adjustments—beyond the usual hand-sanitizing, mask-wearing and surface-disinfecting—will be sticking around for a while.
Branches Are Open, But Visiting May Look Different
Because of their status as essential businesses, most banks and credit unions didn’t fully close their doors in the early months of the pandemic—although, if you do most of your banking online or by mobile app, you may not have noticed the reduced hours, limited services or no-contact adjustments at your local branch.
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As summer turns to fall, banks and credit unions are routinely reevaluating their operational guidelines and keeping a close eye on safety, according to banking representatives contacted by Forbes Advisor.
Wells Fargo only closed 25% of its 5,300 branches at the start of the pandemic, says Mary Mack, senior executive vice president and CEO of consumer and small business banking. Only 20% of branches remained closed as of mid-August, while open branches take a variety of formats: Some branches are offering drive-through service only, while others allow lobby access by appointment.
Brandon Boswell, vice president of branch operations for Navy Federal Credit Union, says about 80% of its branches are open but are operating under one or a combination of five different operating models, depending on location. But all the various safety measures—from handling limited cash transactions in some branches to offering curbside service at others—are designed to reduce the time customers spend inside branches, Boswell says.
One place you probably won’t see Navy Federal reopening branches anytime soon: in-store locations. Boswell says that nine of those branches remain closed because the small physical layouts make it difficult to maintain social distancing. “We don’t anticipate reopening those until further notice,” he says.
Meanwhile, at Kansas City, Missouri-based UMB Bank, all branches are open, but appointments are required for lobby access, says president of consumer banking Abby Wendel. Customers who visit a branch are asked to fill out a health questionnaire before their appointment.
“We prefer appointments, actually, because it allows our bankers to have time to prepare documents or other materials in advance of a customer meeting, which means the conversation can go deeper than if an associate serves a customer as a walk-in,” Wendel says.
Key Takeaway
Check your bank or credit union’s website before traveling to a branch. You may need to make an appointment or to take note of limited service availability or fluctuating hours.
Customer Service Is a Key Priority
Whether you’re logging in to your online account or making an appointment to visit a branch, at some point you may need assistance from another human being. And, in the early days of the coronavirus pandemic, that meant you probably waited on hold for quite a while.
“Our call volume shot through the roof,” says Philip Salis, SVP of member engagement and chief banking officer at Chicago-based Alliant Credit Union. Alliant, which has phased out its physical branches over the past few years to focus on digital services, had to double the number of staffers covering the phones to answer customer calls. “We had to proactively ramp up communications for emergency loans and when to expect stimulus checks,” Salis says.
Now that some of the early pandemic-related financial confusion has been resolved, phone lines are getting back to a more normal volume. But you may start to see your bank offering new ways of communicating with customer service representatives.
One banking trend in the United Kingdom that’s just starting to appear in the U.S. is video chat, says Gina DeCorla, a senior analyst with Informa Financial Intelligence. This feature is different from a teller-assisted ATM experience, she says, and can allow for more in-depth services to be provided—think of it like a telehealth appointment with your doctor.
University Credit Union in California, for example, offers video banking by desktop computer and mobile app to facilitate money transfers, loan applications and payments, and opening new accounts, DeCorla says.
Key Takeaway
Can’t get to an open branch? No problem. You may be able to bypass the customer service phone line via secure messaging, live text chat or video chat.
Meet the Chatbot
Alongside one-on-one customer service interactions, your bank might have another feature available to answer your questions: a chatbot. This automated tool allows you to read answers to common questions without navigating your bank’s entire website, with prompts to guide you to the information you need.
While a chatbot won’t solve every query, it can cut down on the number of questions that customers feel they need to call to get answered.
DeCorla notes Bank of America’s Erica chatbot, which was updated with Covid-19 information to make it easier for customers to find related resources. Truist Bank launched a chatbot in April to provide information about mortgages, credit cards and personal loans, and received 20,000 queries between then and August. Meanwhile, U.S. Bank launched a chatbot in July that allows customers to complete tasks by voice command while using the bank’s mobile app.
“It’s now going to be more useful than ever to have this option,” DeCorla says, as chatbots can help reduce call volume for simple or brief questions.
“I want [customers] to be able to solve any problem or get the answer to any question online, whether it’s through chat or email,” Salis says. “I would like to get our digital tools to the point where someone only wants to call us if they’re lonely.”
Key Takeaway
Next time you go to your bank or credit union’s homepage or log in to its mobile app, look for a chatbot feature that allows you to find answers to your questions. You may be able to save yourself a phone call.
You’ll Still Have Options
Whether it’s via chatbot, video conferencing or drive-through hours, banks and credit unions know that providing options to customers is important for meeting their needs.
“We are keenly aware that there is a segment of the population that doesn’t like to use mobile apps and prefers to go into the branch and talk with a banker,” Wendel says, “especially for large transactions, new account opening, loan applications and conversations around financial planning.”
“Even if you can [complete] most transactions without a branch, it’s important to be there, whatever the channel,” Boswell says. “It’s difficult to replace face-to-face relationships with technology.”
Boswell says he’s not sure whether customers leaning more on digital tools instead of physical branches will “stick” beyond the pandemic. While some customers who are new to online and mobile banking may discover that they prefer it, others may choose to revert to traditional methods as soon as it’s safe to do so. “We’re going to remain flexible,” Boswell says.
Even for customers who are comfortable banking digitally, this period offers a chance to learn more about services you can access online or via mobile app.
Mack says that customers who were already active on Wells Fargo’s mobile app learned to use additional services in the pandemic’s early days, like mobile check deposit, Zelle money transfers or requesting increased remote deposit or ATM withdrawal limits. The bank’s digital logins increased by more than 21% in the second quarter of 2020 over the prior year.
Even if some banks consider the pandemic in implementing their longer-term strategies to close some branches in the future, the addition of various banking tools will help fill that physical gap.
“There’s an oversaturation of branches,” DeCorla says. “If a customer is using digital banking, driving a little further on occasion wouldn’t be too problematic.”
Key Takeaway
Operations at bank and credit union branches may change during and after the pandemic, but personal interaction isn’t leaving the banking experience anytime soon.