A Closer Look at a Nationally Recognized Bank’s Performance Practices
Being part of a holding company that was recently named #8 on Forbes Magazine’s largest 100 top performing banks in the United States, is evidence that Empire Bank (EB) has a strong focus towards achieving an elite performance threshold. One of the crucial components of a top performing bank is employing staffing best practices at the branch level – which EB has excelled in. They specifically carry out monthly evaluations of teller transaction trends at their institution, branch and front-line staff levels. A solution that assists EB to monitor, forecast and schedule to these trends is the Financial Management Solution, Inc. (FMSI) Teller Management SystemTM (TMS). Through companywide employee involvement and peer coaches, EB has realized consistent and sizeable decreases in their overall labor costs.
Long-Term Performance Success through a Group Effort
EB’s ultimate goal was to utilize TMS business intelligence to help identify teller line inefficiencies. One of the most important initial aspects of the initiative was to not let the scope be short-term. For example, analyzing a few reports and then adjusting the schedules as a “one-off” project was not going to get the full potential out of the program. The reality is that to be the most successful, they required a dedicated ongoing process that required the commitment from the entire EB staff – from senior management to the tellers.
A critical step was to somehow motivate the entire team to get engaged with the program. To help achieve this, EB executives decided to disseminate the TMS monthly metrics across the company to senior management, mid level managers and tellers. This group approach established accountability and created synergies amongst the employees. Shelly Titus, Executive Vice President of Retail Banking at Empire Bank, described these results by stating, “The group approach with FMSI’s Teller Management SystemTM solution has been very effective for us. Having each member in our organization take an active role in monitoring and improving the teller line efficiencies has led to a more productive branch environment.”
Peer Coaches Cultivate Productivity Improvements
EB achieved quick companywide adoption of the program through early TMS adopters promoting the program to their peers, such as enthusiastic branch managers and teller supervisors. These individuals who excelled in utilizing and understanding the TMS reports were extremely helpful in spreading their passion to the other 17 branch locations in the Empire Bank network. Having the message coming from peers was extremely powerful.
Early on in the implementation of TMS, EB recognized how effective peer coaches were towards integrating the TMS program into their culture, so they encouraged the early adopters to share their experiences with their peers as much and as often as possible. Shelly explained this scenario by saying, “The peer coaches were the key to achieving total adoption of the program across the company. It created accountability and people were very responsive to their peer’s excitement. The more people were on-board with the program, the more the group could collectively share “best practices” on how to best manage teller line productivity.”
Best Practices by Executive Vice President of Retail Banking at Empire Bank
-Spend the appropriate amount of time and resources getting the “buy-in” for the TMS program from all levels of the organization.
-Have all levels of retail management regularly visiting with branch staff in their branches to view how the process works, solicit feedback, and allocate some time to discuss the location’s TMS metrics.
-Understand each position’s role in the TMS process – from senior management to the tellers.
It is not without reason that banks, such as Empire Bank’s holding company are selected in the top 10 of the Forbes Magazine – Top Performing Banks list. Empire Bank has exhibited best-in-class practices by utilizing actionable business intelligence programs such as the FMSI Teller Management SystemTM. With a dedicated group approach that monitors and improves their teller line efficiencies across the institution, Empire Bank has consistently achieved an elite banking performance threshold.
Wednesday, October 6, 2010
Thursday, September 23, 2010
A Visit to the Branch of the Future Today
A Conversation with Sandra Dixon, EVP/Group Executive – Operations, Extraco BanksSince the inception of banking, financial institutions have been in a constant state of change. From ancient Romans perfecting the administrative aspect of banking to American bankers installing drive-thru windows, banking institutions have sought ways to improve the delivery of fiduciary services. Extraco Banks, a $1.2 billion community bank with 15 branches in central Texas, is no exception. Not satisfied with incorporating new technologies for the sake of change alone, Extraco has taken a quantum leap—incorporating the best of in-branch systems with the latest and best banking technologies to improve the customer lobby experience while creating internal time and cost saving efficiencies.
The following is a Q/A session with Sandra Dixon, EVP of Extraco, who was instrumental in the design, development, and implementation of the enhanced branch banking environment at Extraco.
FMSI/Davis: What specifically prompted Extraco Banks to rethink its branches?
Sandra Dixon: Over the past several years, Extraco has focused on two critical areas: self-directed services and branch delivery. Self-directed services give customers control over how, where and when they bank. With the expansion of such services in mind, we redesigned our website, adding new features such as online account opening, online lending, live chat, and a life event assistance tool. We also added remote deposit capture for commercial and retail customers, mobile banking services, and image-enabled depository ATMs (our latest addition).
Naturally, these improvements created more demand for this delivery channel, while demand for branch activity declined. Consequently, Extraco turned its focus on the critical branch delivery channel in order to maximize personal customer service while creating a more cost-effective branch. Our goal was to put our customer focused Relationship Bankers (RBs) in front of our customers 100 percent of the time whether it was for a check/cash transaction, customer service issue, or new deposit/loan activity. In order to meet that goal, we had to find the most integrated and seamless technology solution available to reduce the administrative and operational duties historically inherent in traditional bank branches.
FMSI/Davis: What was the first step in determining how best to do this?
Ms. Dixon: The first step in redefining our branch model was to analyze and evaluate the branch performance environment. To accomplish this goal, Extraco utilized the Teller Management SystemTM (TMS) provided by Financial Management Solutions, Inc. (FMSI). The monthly TMS reports gave Extraco detailed performance management information for our entire branch network. Over time we utilized the TMS reports to collect and analyze performance trends in critical areas such as transactions per hour. How do you run your business without knowing your numbers? TMS gave us detailed data and performance projections based on our historic branch transaction activity, and was essential to understanding our performance levels, volume fluctuations, and traffic patterns. This critical information helped us redesign staffing, customer service, even our branch hours.
FMSI/Davis: What does this redefined branch look like?
Ms. Dixon: The branch now has Dialogue Banking Towers™ (towers/pods) located throughout the lobby where any customer activity (e.g., service issue, account opening, loan funding, transactional processing) can be handled, creating one-stop shopping for our customers. Next, we modified the traditional teller line— actually cutting through the “sacred” granite counters to create an opening—which allows the RBs the flexibility to move freely throughout the lobby to assist customers. Then we redesigned the lobby flow to create open areas that facilitate conversation with and service to our customers, while reserving traditional office space for confidential or more complex transactions.
We coupled the new towers/pods and modified teller lines with Talaris Vertera™ cash recyclers with dual coin counters interfaced to Jack Henry (JH) Vertex Teller Capture. The cash recyclers accept cash deposits, verifying and authenticating bills before securely storing them, as well as dispense cash so that RBs are free to focus completely on the customers. JH Teller Capture scans and captures checks in real time at the point of presentment and interfaces with the teller platform system to expedite transaction processing.
Last, we added several amenities to make the lobby more customer friendly. RBs use headsets to communicate with each other to ensure lobby traffic is served promptly and efficiently. Educational towers throughout the branch highlight our products and services, while a technology wall lets customers try the latest technological innovations first hand. Specialty coffee, premium snacks, and the latest financial and national news publications are available at our coffee bar and resource wall. And for those self-directed customers who may find themselves in the lobby, we even added video conferencing so they can work direct with our Customer Care Center on their issue.
The best change is the overall atmosphere. While the equipment and design are key elements, it’s the quality of our well-trained staff that makes it work.
FMSI/Davis: Why did you select teller capture over branch capture?
Ms. Dixon: In 2007, we researched both teller capture and branch capture for our over-the-counter items. We had just completed the imaging solution for our incoming and outgoing cash letters and had implemented Merchant Capture for our business customers. We felt Merchant Capture was an important first step to implementing capture in the branch by eliminating high volume check imaging from the branch. Merchant Capture has proven a win for both the customer and the branch.
Extraco was already using the JH Vertex Teller Automation System™ to process transactions. Since Extraco was operating in a PC environment required for teller capture, the JH Vertex Teller Capture system was a perfect choice. Teller capture images documents at the point of presentment, rather than behind the counter as in a branch capture environment. With teller capture, Extraco eliminated backroom operations saving us 6.5 FTEs. The implementation time permitted us to make those reductions by repositioning staff through attrition. It took just over a year to recoup our investment.
Teller capture all but eliminates customer errors, second-day balancing items, and conversations between front line and back office to repair items the scanners cannot read. Extraco uses Digital Check TS230 scanners that read 100 documents per minute with a 90-95 percent read rate. A deposit consisting of four checks and one deposit slip, for example, can be processed from start to finish in 12 seconds. The JH system color codes items that need to be repaired. The customer no longer has to wait for several days to get a deposit correction notice in the mail, and resolutions of out-of-balance deposits are almost non-existent. Large check deposits can be suspended, a receipt given to the customer, and checks imaged later during what FMSI identifies as “waiting for work” time.
The two best features of a teller platform and teller capture system are speed keys and virtual tickets. Speed keys are shortcuts set up to expedite transactions with little effort by the staff. Virtual tickets replace paper documents like teller ins/outs and general ledger. In addition, we no longer require a withdrawal ticket or cash deposit ticket for transactions of $250 or less. The bank saves approximately $8,000 per year in paper costs.
Teller Capture also allows us to extend our business day to closing time (rather than having a cut-off earlier in the afternoon) giving customers an expanded time frame in which to make deposits. Eliminating a mid-afternoon balancing process also simplifies staffing. And, because Teller Capture uploads transactions every five minutes, we can submit the majority of our outgoing cash letters by our 4:00 p.m. deadline for same-day availability.
FMSI/Davis: How are you handling cash transactions in this new environment?
Ms. Dixon: Our goal was to make traditional teller functions as simple as possible. We did not want our RBs to have to set up and balance cash. This would have put them in a heavy administrative environment, which is exactly what we were trying to avoid. We purchased Talaris Vertera cash recyclers with dual coin dispensers so transactions could be handled at the towers/pods as well as the modified teller lines. The Talaris recycler cuts a cash transaction time in half. Coupled with a Talaris dual coin dispenser, the recycler can cash a check in less than 10 seconds. On average, cash-in can be processed in 25 seconds versus 60 seconds, a 58 percent savings. Cash-out transactions can be processed in 12 seconds versus 32 seconds, a 60 percent savings in time. Both cash transactions are performed with 100 percent accuracy thanks to the recyclers. Vault buys/sells average a 75 percent to 85 percent reduction and no longer require dual control, freeing up valuable supervisor time in the branch.
Teller capture interfaced with a recycler allows the RB the flexibility of signing on at any PC assigned to a recycler at a tower/pod or the modified teller line to perform a traditional teller transaction. Morning set-up requires approximately 15 to 20 seconds, end-of-day balancing only 30 seconds. The RBs buy/sell any cash involved in customer transactions directly from/to the recycler. These new changes alone eventually resulted in significant staff reductions per branch (on average, 1.5 to 3 full-time equivalents, all of which we phased out through attrition).
Last, our branches feature the Talaris self-service lobby QuickChange coin counters. Customers can have coins counted and deposited immediately rather than leaving change with a RB and receiving a deposit slip several days later. The QuickChange also simplifies coin processing for the branch by producing Fed-ready bags. And RBs can deposit loose coin using the QuickChange, avoiding exposed money and eliminating the need to count before end of day.
FMSI/Davis: How did your customers respond?
Ms. Dixon: Our customers have responded very positively on the enhanced service. They love the prompt greeting and the personal attention provided by our RBs. Being able to complete banking transactions with just one stop at multiple locations throughout the lobby has been a frequent compliment of the new branch design.
FMSI/Davis: This is quite the undertaking. How did you approach this change from a management level?
Ms. Dixon: Senior level management realized that organizational focus was essential for meaningful change to take place. With this in mind, we established several committees, including Innovation, Productivity/Delivery and Empowerment, which were instrumental in creating, streamlining and perfecting the concepts. The committees were cross-functional teams with representatives from Retail, Operations, Information Systems, Compliance and Marketing. Over time these combined groups identified and formulated a plan that resulted in the branch you see today.
To ensure success of this plan, we undertook three critical steps. First, we literally dissected every function to eliminate administrative duties so our RBs could focus on the customers. Second, the RBs were trained extensively in new accounts, customer service, and teller services. Third, the recyclers, teller capture, speed keys and virtual tickets were integrated to make this new environment possible.
FMSI/Davis: What companies did you partner with?
Ms. Dixon: We had great partners in this endeavor including: Financial Management Solutions, Inc. www.fmsi.com who supplied our ongoing performance management reports, Jack Henry www.jackhenrybanking.com our core processing and teller platform/capture solution, and Talaris www.talaris.com who supplied the cash recyclers and customer coin dispensers.
For our latest addition—10 self-serve 38 NCR image-enabled depository ATMS—we worked with NCR www.ncr.com. These new ATMs accept cash and check deposits via imaging, giving our customers 24/7 transaction processing. The new ATMs have been a huge success with our customers. Within four months, the volume of deposits at our iTMs—our trademarked name for these machines—has grown to over 8,000 per month. The FMSI branch hours report helped us determine the iTM placement, and in some cases, reduce branch hours knowing customers could still make both cash and check deposits with the new machine.
All of these partners are great. Simply put, you just can’t beat their solutions.
FMSI/Davis: What’s in store for Extraco Banks in the future?
Ms. Dixon: We will continue to strive for ways to implement the most efficient banking technologies that support our mission. We will continue to study our external environment as well as our statistical information, looking for ways to simplify and enhance service. The sooner you implement strategic, well-designed improvements, the greater your benefit in terms of customer service and savings. It is a proven approach that we intend to continue.
About Extraco Banks
Extraco celebrated 100 years and three generations of family management on July 12th, 2002. Founded as a cotton warehousing company, today Extraco is the largest and most comprehensive independent financial institution headquartered in central Texas. It exceeds $1 billion in assets, serves 153,000 customers in 15 branch locations, participates in hundreds of volunteer community leadership roles, and, most importantly, employs over 400 central Texans. The company conducts business in several central Texas communities including Georgetown, Killeen, Harker Heights, Copperas Cove, Waco, Temple, Belton, Troy, Lorena, Gatesville, Hamilton and McGregor, and offers trust, insurance, brokerage, mortgage, technology, and a wide variety of traditional consumer and commercial banking services. Over the last decade, Extraco has developed a one-stop financial center vision that offers a superior experience to its customers.
About Financial Management Solutions, Inc. (FMSI)
Located in Atlanta, GA, and established in 1990, FMSI provides easy-to-use, yet sophisticated, systems – The Teller Management System™ (TMS) and The Lobby Tracking SystemTM (LTS) – that allow financial institutions to manage and staff to meet service and sales needs like never before. We offer the ability to schedule the FI team throughout a branch network to meet traffic demand, and to manage the process through easy to read color graphics and succinct performance management reports.
FMSI provides decision support tools and performance management information exclusively for financial institutions of all sizes throughout the United States. Visit the company’s Web site at www.fmsi.com or call 877.887.3022.
The following is a Q/A session with Sandra Dixon, EVP of Extraco, who was instrumental in the design, development, and implementation of the enhanced branch banking environment at Extraco.
FMSI/Davis: What specifically prompted Extraco Banks to rethink its branches?
Sandra Dixon: Over the past several years, Extraco has focused on two critical areas: self-directed services and branch delivery. Self-directed services give customers control over how, where and when they bank. With the expansion of such services in mind, we redesigned our website, adding new features such as online account opening, online lending, live chat, and a life event assistance tool. We also added remote deposit capture for commercial and retail customers, mobile banking services, and image-enabled depository ATMs (our latest addition).
Naturally, these improvements created more demand for this delivery channel, while demand for branch activity declined. Consequently, Extraco turned its focus on the critical branch delivery channel in order to maximize personal customer service while creating a more cost-effective branch. Our goal was to put our customer focused Relationship Bankers (RBs) in front of our customers 100 percent of the time whether it was for a check/cash transaction, customer service issue, or new deposit/loan activity. In order to meet that goal, we had to find the most integrated and seamless technology solution available to reduce the administrative and operational duties historically inherent in traditional bank branches.
FMSI/Davis: What was the first step in determining how best to do this?
Ms. Dixon: The first step in redefining our branch model was to analyze and evaluate the branch performance environment. To accomplish this goal, Extraco utilized the Teller Management SystemTM (TMS) provided by Financial Management Solutions, Inc. (FMSI). The monthly TMS reports gave Extraco detailed performance management information for our entire branch network. Over time we utilized the TMS reports to collect and analyze performance trends in critical areas such as transactions per hour. How do you run your business without knowing your numbers? TMS gave us detailed data and performance projections based on our historic branch transaction activity, and was essential to understanding our performance levels, volume fluctuations, and traffic patterns. This critical information helped us redesign staffing, customer service, even our branch hours.
FMSI/Davis: What does this redefined branch look like?
Ms. Dixon: The branch now has Dialogue Banking Towers™ (towers/pods) located throughout the lobby where any customer activity (e.g., service issue, account opening, loan funding, transactional processing) can be handled, creating one-stop shopping for our customers. Next, we modified the traditional teller line— actually cutting through the “sacred” granite counters to create an opening—which allows the RBs the flexibility to move freely throughout the lobby to assist customers. Then we redesigned the lobby flow to create open areas that facilitate conversation with and service to our customers, while reserving traditional office space for confidential or more complex transactions.
We coupled the new towers/pods and modified teller lines with Talaris Vertera™ cash recyclers with dual coin counters interfaced to Jack Henry (JH) Vertex Teller Capture. The cash recyclers accept cash deposits, verifying and authenticating bills before securely storing them, as well as dispense cash so that RBs are free to focus completely on the customers. JH Teller Capture scans and captures checks in real time at the point of presentment and interfaces with the teller platform system to expedite transaction processing.
Last, we added several amenities to make the lobby more customer friendly. RBs use headsets to communicate with each other to ensure lobby traffic is served promptly and efficiently. Educational towers throughout the branch highlight our products and services, while a technology wall lets customers try the latest technological innovations first hand. Specialty coffee, premium snacks, and the latest financial and national news publications are available at our coffee bar and resource wall. And for those self-directed customers who may find themselves in the lobby, we even added video conferencing so they can work direct with our Customer Care Center on their issue.
The best change is the overall atmosphere. While the equipment and design are key elements, it’s the quality of our well-trained staff that makes it work.
FMSI/Davis: Why did you select teller capture over branch capture?
Ms. Dixon: In 2007, we researched both teller capture and branch capture for our over-the-counter items. We had just completed the imaging solution for our incoming and outgoing cash letters and had implemented Merchant Capture for our business customers. We felt Merchant Capture was an important first step to implementing capture in the branch by eliminating high volume check imaging from the branch. Merchant Capture has proven a win for both the customer and the branch.
Extraco was already using the JH Vertex Teller Automation System™ to process transactions. Since Extraco was operating in a PC environment required for teller capture, the JH Vertex Teller Capture system was a perfect choice. Teller capture images documents at the point of presentment, rather than behind the counter as in a branch capture environment. With teller capture, Extraco eliminated backroom operations saving us 6.5 FTEs. The implementation time permitted us to make those reductions by repositioning staff through attrition. It took just over a year to recoup our investment.
Teller capture all but eliminates customer errors, second-day balancing items, and conversations between front line and back office to repair items the scanners cannot read. Extraco uses Digital Check TS230 scanners that read 100 documents per minute with a 90-95 percent read rate. A deposit consisting of four checks and one deposit slip, for example, can be processed from start to finish in 12 seconds. The JH system color codes items that need to be repaired. The customer no longer has to wait for several days to get a deposit correction notice in the mail, and resolutions of out-of-balance deposits are almost non-existent. Large check deposits can be suspended, a receipt given to the customer, and checks imaged later during what FMSI identifies as “waiting for work” time.
The two best features of a teller platform and teller capture system are speed keys and virtual tickets. Speed keys are shortcuts set up to expedite transactions with little effort by the staff. Virtual tickets replace paper documents like teller ins/outs and general ledger. In addition, we no longer require a withdrawal ticket or cash deposit ticket for transactions of $250 or less. The bank saves approximately $8,000 per year in paper costs.
Teller Capture also allows us to extend our business day to closing time (rather than having a cut-off earlier in the afternoon) giving customers an expanded time frame in which to make deposits. Eliminating a mid-afternoon balancing process also simplifies staffing. And, because Teller Capture uploads transactions every five minutes, we can submit the majority of our outgoing cash letters by our 4:00 p.m. deadline for same-day availability.
FMSI/Davis: How are you handling cash transactions in this new environment?
Ms. Dixon: Our goal was to make traditional teller functions as simple as possible. We did not want our RBs to have to set up and balance cash. This would have put them in a heavy administrative environment, which is exactly what we were trying to avoid. We purchased Talaris Vertera cash recyclers with dual coin dispensers so transactions could be handled at the towers/pods as well as the modified teller lines. The Talaris recycler cuts a cash transaction time in half. Coupled with a Talaris dual coin dispenser, the recycler can cash a check in less than 10 seconds. On average, cash-in can be processed in 25 seconds versus 60 seconds, a 58 percent savings. Cash-out transactions can be processed in 12 seconds versus 32 seconds, a 60 percent savings in time. Both cash transactions are performed with 100 percent accuracy thanks to the recyclers. Vault buys/sells average a 75 percent to 85 percent reduction and no longer require dual control, freeing up valuable supervisor time in the branch.
Teller capture interfaced with a recycler allows the RB the flexibility of signing on at any PC assigned to a recycler at a tower/pod or the modified teller line to perform a traditional teller transaction. Morning set-up requires approximately 15 to 20 seconds, end-of-day balancing only 30 seconds. The RBs buy/sell any cash involved in customer transactions directly from/to the recycler. These new changes alone eventually resulted in significant staff reductions per branch (on average, 1.5 to 3 full-time equivalents, all of which we phased out through attrition).
Last, our branches feature the Talaris self-service lobby QuickChange coin counters. Customers can have coins counted and deposited immediately rather than leaving change with a RB and receiving a deposit slip several days later. The QuickChange also simplifies coin processing for the branch by producing Fed-ready bags. And RBs can deposit loose coin using the QuickChange, avoiding exposed money and eliminating the need to count before end of day.
FMSI/Davis: How did your customers respond?
Ms. Dixon: Our customers have responded very positively on the enhanced service. They love the prompt greeting and the personal attention provided by our RBs. Being able to complete banking transactions with just one stop at multiple locations throughout the lobby has been a frequent compliment of the new branch design.
FMSI/Davis: This is quite the undertaking. How did you approach this change from a management level?
Ms. Dixon: Senior level management realized that organizational focus was essential for meaningful change to take place. With this in mind, we established several committees, including Innovation, Productivity/Delivery and Empowerment, which were instrumental in creating, streamlining and perfecting the concepts. The committees were cross-functional teams with representatives from Retail, Operations, Information Systems, Compliance and Marketing. Over time these combined groups identified and formulated a plan that resulted in the branch you see today.
To ensure success of this plan, we undertook three critical steps. First, we literally dissected every function to eliminate administrative duties so our RBs could focus on the customers. Second, the RBs were trained extensively in new accounts, customer service, and teller services. Third, the recyclers, teller capture, speed keys and virtual tickets were integrated to make this new environment possible.
FMSI/Davis: What companies did you partner with?
Ms. Dixon: We had great partners in this endeavor including: Financial Management Solutions, Inc. www.fmsi.com who supplied our ongoing performance management reports, Jack Henry www.jackhenrybanking.com our core processing and teller platform/capture solution, and Talaris www.talaris.com who supplied the cash recyclers and customer coin dispensers.
For our latest addition—10 self-serve 38 NCR image-enabled depository ATMS—we worked with NCR www.ncr.com. These new ATMs accept cash and check deposits via imaging, giving our customers 24/7 transaction processing. The new ATMs have been a huge success with our customers. Within four months, the volume of deposits at our iTMs—our trademarked name for these machines—has grown to over 8,000 per month. The FMSI branch hours report helped us determine the iTM placement, and in some cases, reduce branch hours knowing customers could still make both cash and check deposits with the new machine.
All of these partners are great. Simply put, you just can’t beat their solutions.
FMSI/Davis: What’s in store for Extraco Banks in the future?
Ms. Dixon: We will continue to strive for ways to implement the most efficient banking technologies that support our mission. We will continue to study our external environment as well as our statistical information, looking for ways to simplify and enhance service. The sooner you implement strategic, well-designed improvements, the greater your benefit in terms of customer service and savings. It is a proven approach that we intend to continue.
About Extraco Banks
Extraco celebrated 100 years and three generations of family management on July 12th, 2002. Founded as a cotton warehousing company, today Extraco is the largest and most comprehensive independent financial institution headquartered in central Texas. It exceeds $1 billion in assets, serves 153,000 customers in 15 branch locations, participates in hundreds of volunteer community leadership roles, and, most importantly, employs over 400 central Texans. The company conducts business in several central Texas communities including Georgetown, Killeen, Harker Heights, Copperas Cove, Waco, Temple, Belton, Troy, Lorena, Gatesville, Hamilton and McGregor, and offers trust, insurance, brokerage, mortgage, technology, and a wide variety of traditional consumer and commercial banking services. Over the last decade, Extraco has developed a one-stop financial center vision that offers a superior experience to its customers.
About Financial Management Solutions, Inc. (FMSI)
Located in Atlanta, GA, and established in 1990, FMSI provides easy-to-use, yet sophisticated, systems – The Teller Management System™ (TMS) and The Lobby Tracking SystemTM (LTS) – that allow financial institutions to manage and staff to meet service and sales needs like never before. We offer the ability to schedule the FI team throughout a branch network to meet traffic demand, and to manage the process through easy to read color graphics and succinct performance management reports.
FMSI provides decision support tools and performance management information exclusively for financial institutions of all sizes throughout the United States. Visit the company’s Web site at www.fmsi.com or call 877.887.3022.
Thursday, September 16, 2010
Banking Business Intelligence Software
Everybody who reads this blog post should be able to relate to technology significantly changing their lives at one point. Of course, this is a personal experience that is subjective to each and every individual’s experiences. Some who are a “little longer in the tooth” may recall the advent of the calculator. Others may recall the first spreadsheets in the early computers. One theme that is consistent through everybody’s experience is that technology has and will continue to affect how we view and live in this world. A powerful technology that has evolved dramatically in the last 10 years is “actionable” business intelligence software. The keyword here is “actionable” – since in many cases business intelligence can be overwhelming amounts of information that can be difficult to “take action” on. In recent years business intellgence has become more automated and more relevant to actual decision support functions. In the banking world, banks and credit unions all accross the country are now taking a closer look at outsourced business intelligence solutions that provide them with quick, reliable and “actionable” business intelligence.
With Banking Business Intelligence Software You Can:
Set targets, see results and understand what drives the numbers - such as teller-line productivity numbers.
Identify strengths or non-strengths – such as part-time emloyee utilization.
Monitor and improve opportunities and trends – such as historic transaction volumes as they relate to branch hours of operations.
The best business intelligence:
Delivers the right information from one trusted source.
Lets you work with information the way you want—reports & real-time dashboards
Allows you to utilize the information when and where you require.
What “actionable” business intelligence are you using today?
With Banking Business Intelligence Software You Can:
Set targets, see results and understand what drives the numbers - such as teller-line productivity numbers.
Identify strengths or non-strengths – such as part-time emloyee utilization.
Monitor and improve opportunities and trends – such as historic transaction volumes as they relate to branch hours of operations.
The best business intelligence:
Delivers the right information from one trusted source.
Lets you work with information the way you want—reports & real-time dashboards
Allows you to utilize the information when and where you require.
What “actionable” business intelligence are you using today?
Friday, July 30, 2010
Has the Financial Crisis Caused Financial Institutions to Put Innovation on the Back Burner?
The “Great Recession” has seriously impacted the economy over the past couple of years. Many businesses have taken substantial hits to their revenue streams, including banks and credit unions. When revenue declines management is faced with many difficult decisions. Essentially, without as much money to go around there are many shifts in priorities. Unfortunately, more often than not, many innovative projects are the first ones to be cut and or put on the back burner. Whether these projects are to increase revenue or decrease costs, they are generlly the easiest to cut due to there unproven nature. It is always the most depenedable to put your money in the “safe” bet. For example, it is much easier to try and “do more with less” and operate on a much leaner staff. While this approach may temporarily stop the leak in a boat, it is merely a short term fix. Financial institutions that recognize this and take action to reinstate many of these innovative projects, that were on the back burner, will benefit the greatest as we all distance ourselves from the worst points in the “Great Recession.” Where does your instituion fall in this subject?
The perfect innovative initiative to make a priority is a retail branch workforce optimization project. With labor costs being an enormous expense, there are significant dollar amounts that can be saved through efficient processes. For example, comparing different branches and teller productivity performances. Ultimately, the absolute best comparison is other industry peers. A great source for this comparison is the FMSI Comparative Data Report. This monthly report, which is distributed to all FMSI Teller Management System clients, ranks close to 100 nationwide financial institutions in four different productivity metrics.
The time is now for senior management to put focus back on innovative projects. What innovative projects are you currently working on?
Adventure Book
Wednesday, July 21, 2010
Teller Performance Management – Importance of Goals
Understanding expectations and goals is critical for all employees. Countless business gurus constantly harp on the importance of having and setting goals. I do not disagree with this, however I believe the more important aspect is what your goals should be. Specifically, what your minimum and your “target” goals are. In teller line operations in financial institutions across the country, these goals are often not set.
So, what is an example of a teller line goal? There are many different goals from sales goals to service goals. I believe the goals that can be most effectively managed are productivity goals. For example, tracking teller transaction per hour is a fantastic metric that you can utilize. You can do this per branch, per teller and per institution.
The big question is… what should your teller transaction per hour goals be? What do you compare this number to? If you set your goal to little or too big it can have a negative effect. The first place to start is internal numbers. For example, comparing different branches and teller performance. Ultimately, the absolute best comparison is other industry peers. A great source for this comparison is the FMSI Comparative Data Report. This monthly report, which is distributed to all FMSI Teller Management System clients, ranks close to 100 nationwide financial institutions in four different productivity metrics.
So now that you have all the data to establish goals, the next step is to clearly communicate the minimum and “target” goals to your staff. With expectations and goals set and conveyed, a business will see positive results.
Monday, June 28, 2010
Survival of Retail Banking
I recently came accross the below article and was fascinated by some of the industry trends and the emphasis put on the strategy towards the ”survival” of retail banking.
“When retail distribution specialists are looking at the positioning of branch real-estate there are a number of considerations, but the foremost consideration is where physically to put a branch to enable the most visits – essentially, how convenient it is to get to a branch. But these days, the branch simply isn’t the most convenient channel to use – Internet, Mobile and ATMs are far more ‘convenient’.
Key segments like Mass Affluent, and key product areas like mortgages, wealth management and loans are just too easy to position and service through direct channels. Branches better start figuring out how they’re going to make money over the next 5 years, and they better do it fast.” – From the Branch Networks: Where do we go from here? article in www.Banking4tomorrow.com See the full article here (Branch Network Industry Trends)
A key area of the equation is controlling the staffing cost element. Teller transaction volumes are down while salary & benefit costs are way up. The time is now for financial institutions to take measurable action. FMSI’s Teller Management System™ (TMS) finds the right balance for a teller line by scheduling tellers based on forecasted transaction volumes, leading to significant labor cost savings while balancing the desired service levels.
Friday, June 25, 2010
NEW Bank and Credit Union Contact Center Scheduling System
(PRWEB) June, 2010 — “The ContactCenter Management System™ (CMS) enables community banks and credit unions to take advantage of a tool that for the most part has only been utilized by much larger financial institutions – an automated scheduling solution based on forecasted call volumes,” says W. Michael Scott, CEO of Financial Management Solutions, Inc., “By automatically scheduling agents based on forecasted call volumes and agent work preference, CMS allows for an optimized contact center staff, resulting in significant labor cost savings.”
The automated web-based scheduling engine for CMS takes volume forecasts by contact center and matches it to agent work preferences – creating detailed monthly work schedules. You can easily “tweak” schedules, remove or add an employee to the schedule, or override any of the basic parameters you originally set up.
In addition to the automated scheduling feature, CMS also offers unique to the financial institution industry, an array of monthly contact center management reports (CMS Reports) that analyze key productivity metrics including:
Agent Productivity
Actual Staffing Effectiveness
Banking Industry Peer-to-Peer Comparisons
Plus Many More Reports from a Management Perspective
The automated web-based scheduling engine for CMS takes volume forecasts by contact center and matches it to agent work preferences – creating detailed monthly work schedules. You can easily “tweak” schedules, remove or add an employee to the schedule, or override any of the basic parameters you originally set up.
In addition to the automated scheduling feature, CMS also offers unique to the financial institution industry, an array of monthly contact center management reports (CMS Reports) that analyze key productivity metrics including:
Agent Productivity
Actual Staffing Effectiveness
Banking Industry Peer-to-Peer Comparisons
Plus Many More Reports from a Management Perspective
12 Months Balances of Four-year CDs Have Increased
Consumers gravitatie towards the product with the greatest return. Lately this product has been four-year CDs, according to data tracking firm Market Rates Insight. "Over the past 12 months, balances of four-year CDs have increased by $17 billion from $149 to $166 billion. During the same time period, balances of all other CDs declined from $264 billion to $225 billion. Credit union data was not tracked by MRI," States Michelle Samaad from her recent CUTIMES article (click here).
How have your four-year CD sales been? Are they in-line with this industry trend? Tracking sales per institution, branch and individual lobby employee is something that every successful organization does well. Simply knowing your numbers is not enough. You have to monitor, forecast and improve them with a dedicated process. You may not have dedicated resources to keep up to this level of detail with your platform side of your business. With the Lobby Tracking System (LTS) from FMSI, this time will be drastically reduced allowing you to keep up with monitoring, forecasting and improving your lobby performance.
Financial Management Solutions, Inc. (FMSI) LTS system will ultimately help you improve your sales and staffing performance.
How have your four-year CD sales been? Are they in-line with this industry trend? Tracking sales per institution, branch and individual lobby employee is something that every successful organization does well. Simply knowing your numbers is not enough. You have to monitor, forecast and improve them with a dedicated process. You may not have dedicated resources to keep up to this level of detail with your platform side of your business. With the Lobby Tracking System (LTS) from FMSI, this time will be drastically reduced allowing you to keep up with monitoring, forecasting and improving your lobby performance.
Financial Management Solutions, Inc. (FMSI) LTS system will ultimately help you improve your sales and staffing performance.
Soaring to New Heights with the FMSI Lobby Tracking System™
The Story of a Credit Union’s Pursuit of a Quality Lobby Experience
Located in Dayton, Ohio home of the Wright Brothers, the Wright-Patt Credit Union (WPCU) over the last year has soared to new performance management heights with the Financial Management Solutions, Inc. (FMSI) Lobby Tracking System™ (LTS). Much like Orville and Wilbur’s dedication towards historic innovation, Wright-Patt Credit Union has a serious commitment in having a balanced support for all three stakeholders of their organization including: the credit union itself, their employees and their members. An area that plays a major role in all three interests is the lobby experience. LTS armed WPCU with the credit union business intelligence they required to greatly surpass their ideal lobby experience ambitions.
Improvements to the Sign-in and Service Tracking Process
Historically, WPCU and its 22 locations had a sign-in clipboard for tracking members waiting in the lobby. This process was chaotic and could likely result in poor service. For example, they had trouble tracking wait times. Members would sign the clipboard and could potentially wait 30 minutes without a manager being aware of the situation. Another example was the inability to know which product(s) the members were there to discuss, which many times had a negative impact on service - due to a discrepancy in Member Service Representative (MSR) product selling clearance levels not matching the member’s product. To top it off, the clipboard caused some members to have major concerns over privacy. Needless to say, WPCU’s management team recognized that there was some room for improvement.
When WPCU implemented the LTS solution, it immediately allowed for real-time tracking of all members – from the minute they walked in the door - to the minute they left. It was the perfect solution for identifying and limiting WPCU’s wait time issues, product assignment service issues and member privacy concerns. So how does LTS work? Essentially, when a member arrives in the lobby they enter their information into a secure computer or a greeter types in their information. Immediately, all MSRs and management can see the member through the LTS queue management tool. If a member is waiting for longer than a designated amount of time, “alert” boxes will pop up on each MSR’s and management’s screen immediately notifying them of the situation. Furthermore, displayed next to each member name in the queue is what product(s) they are there to discuss. With these LTS enhancements, WPCU was able to dramatically improve their lobby sign-in and service tracking process.
Management Reporting
For years, Jeff Carpenter the VP of Membership and Development at WPCU, had to rely on what he described as a “gut feel” when comparing the performances of different MSRs and branches. He simply did not have the concrete data to support his decisions and described this experience by stating, “I would hear stories from one branch about how great their lobby experience was and I would also hear different stories from another branch about how poor their lobby experience was. One branch was contempt with the number of MSRs they had and the other was asking to hire more MSRs. Without regular and precise performance data such as the number of products sold and how long the average wait times were, it was very difficult to discern the discrepancies between the two branches. FMSI’s Lobby Tracking System™ gave me the data I needed to better analyze the branch comparisons and make more informed and confident decisions. Over the past year I have utilized the LTS management report on a weekly basis.”
LTS Best Practices from the VP of Membership and Development at WPCU
• Have a weekly conference call with your management team to review the LTS data. With all the emails they receive in a week, this call highlights the most important topics.
• During the sign-in process, train your MSRs to avoid clicking “accept” before they actually have a member in their office. A potential issue can occur when two MSRs go to service the same member, which can result with the member ending up in the system with the wrong MSR.
• Pick up the phone and call FMSI’s Client Services team. They not only were extremely helpful during the roll-out of the LTS product, but their general expertise and specific insights into the credit union world have been invaluable.
With an improved sign-in and service tracking process combined with detailed monthly management reports, Wright-Patt Credit Union has truly soared to new heights. Just as Orville and Wilbur’s commitment to flying perfection revolutionized the world, Wright-Patt Credit Union’s balanced dedication to all 3 stakeholders, blended with the powerful FMSI LTS solution, fundamentally refocused how they managed their lobby experience.
Located in Dayton, Ohio home of the Wright Brothers, the Wright-Patt Credit Union (WPCU) over the last year has soared to new performance management heights with the Financial Management Solutions, Inc. (FMSI) Lobby Tracking System™ (LTS). Much like Orville and Wilbur’s dedication towards historic innovation, Wright-Patt Credit Union has a serious commitment in having a balanced support for all three stakeholders of their organization including: the credit union itself, their employees and their members. An area that plays a major role in all three interests is the lobby experience. LTS armed WPCU with the credit union business intelligence they required to greatly surpass their ideal lobby experience ambitions.
Improvements to the Sign-in and Service Tracking Process
Historically, WPCU and its 22 locations had a sign-in clipboard for tracking members waiting in the lobby. This process was chaotic and could likely result in poor service. For example, they had trouble tracking wait times. Members would sign the clipboard and could potentially wait 30 minutes without a manager being aware of the situation. Another example was the inability to know which product(s) the members were there to discuss, which many times had a negative impact on service - due to a discrepancy in Member Service Representative (MSR) product selling clearance levels not matching the member’s product. To top it off, the clipboard caused some members to have major concerns over privacy. Needless to say, WPCU’s management team recognized that there was some room for improvement.
When WPCU implemented the LTS solution, it immediately allowed for real-time tracking of all members – from the minute they walked in the door - to the minute they left. It was the perfect solution for identifying and limiting WPCU’s wait time issues, product assignment service issues and member privacy concerns. So how does LTS work? Essentially, when a member arrives in the lobby they enter their information into a secure computer or a greeter types in their information. Immediately, all MSRs and management can see the member through the LTS queue management tool. If a member is waiting for longer than a designated amount of time, “alert” boxes will pop up on each MSR’s and management’s screen immediately notifying them of the situation. Furthermore, displayed next to each member name in the queue is what product(s) they are there to discuss. With these LTS enhancements, WPCU was able to dramatically improve their lobby sign-in and service tracking process.
Management Reporting
For years, Jeff Carpenter the VP of Membership and Development at WPCU, had to rely on what he described as a “gut feel” when comparing the performances of different MSRs and branches. He simply did not have the concrete data to support his decisions and described this experience by stating, “I would hear stories from one branch about how great their lobby experience was and I would also hear different stories from another branch about how poor their lobby experience was. One branch was contempt with the number of MSRs they had and the other was asking to hire more MSRs. Without regular and precise performance data such as the number of products sold and how long the average wait times were, it was very difficult to discern the discrepancies between the two branches. FMSI’s Lobby Tracking System™ gave me the data I needed to better analyze the branch comparisons and make more informed and confident decisions. Over the past year I have utilized the LTS management report on a weekly basis.”
LTS Best Practices from the VP of Membership and Development at WPCU
• Have a weekly conference call with your management team to review the LTS data. With all the emails they receive in a week, this call highlights the most important topics.
• During the sign-in process, train your MSRs to avoid clicking “accept” before they actually have a member in their office. A potential issue can occur when two MSRs go to service the same member, which can result with the member ending up in the system with the wrong MSR.
• Pick up the phone and call FMSI’s Client Services team. They not only were extremely helpful during the roll-out of the LTS product, but their general expertise and specific insights into the credit union world have been invaluable.
With an improved sign-in and service tracking process combined with detailed monthly management reports, Wright-Patt Credit Union has truly soared to new heights. Just as Orville and Wilbur’s commitment to flying perfection revolutionized the world, Wright-Patt Credit Union’s balanced dedication to all 3 stakeholders, blended with the powerful FMSI LTS solution, fundamentally refocused how they managed their lobby experience.
The Teller Management System™ - “It’s Not Science Fiction”
A Closer Look at a Credit Union’s Productivity and Scheduling Efficiency Improvements
“It’s Not Science Fiction,” is the latest marketing campaign for the United States Air Force (USAF) highlighting its futuristic technologies, such as remotely piloted aircrafts and their space command network. Much like the USAF, Tyndall Federal Credit Union (TFCU) - which had its first office established on a Florida USAF base in 1956 - has been winning battles of their own with technological solutions from Financial Management Solutions, Inc. (FMSI). TFCU and its 9 locations, has benefited greatly from utilizing FMSI’s Teller Management System™ (TMS). They reduced turnover of their best tellers and enhanced their scheduling process, which led to an improvement in productivity and an optimization of their staffing.
Retaining and Rewarding Top Performing Tellers
Mario Luppino - Branch Operations Executive at TFCU - was aware of some staffing issues in his branch network. He was losing his best tellers due to an inequality in wages. Specifically, his top performers were not being rewarded for their exceptional service and they were leaving the organization. Mario needed a solution that would help him resolve his costly turnover problem.
Mario found FMSI and was excited to learn that the “technological” TMS solution was exactly what he was looking for. The monthly TMS report in essence collects and reports trends in critical areas of the teller area at the institution, branch and individual performer levels.
Having this information allowed Mario to determine exactly who his top talent was and he established a comprehensive incentive program that rewarded them based on key TMS performance indicators - such as transactions per hour (TPH). Mario described this experience by stating, “The implementation of The Teller Management System™ and specifically its incentive program was a huge success. I was able to retain my best tellers and we saw a favorable boost in our productivity numbers as a direct result.”
The following is a TFCU incentive plan related excerpt from “Talented Team Is Behind Tyndall FCU’s Growth and Success, Says CEO” - Credit Union Time April 14th, 2010 Edition
“One unexpected spinoff from the (incentive) plan has been enhanced communication among participants, HR and senior executives. Employees ask, "How can I get from a level 3 to a level 4?" That opens conversations offering performance feedback and new ideas.”
An Enhanced Scheduling Process
TFCU historically scheduled their tellers the best that they could. Without the “technological” TMS solution, they did not have a monthly report quantifying historic traffic patterns for each branch and they had to manually fill out the branch schedule, which was an arduous process. The TMS automated branch scheduling tool called the Online Scheduling™ (OLS) system significantly improved their scheduling process. OLS utilizes monthly transaction data to create an optimal full-time or part-time staff mix that best meets transaction volume forecast and productivity goals.
Along with expediting the arduous schedule creation process the OLS solution significantly improved account holder service. For example, longer wait times would sometimes result during peak lunch periods, due to many of the tellers being on their breaks. The automated scheduling tool immediately corrected this situation by scheduling the proper amount of tellers based on historic transaction volumes.
Best Practices from the Branch Operations Executive at TFCU
• Incorporate comparative benchmarking (where they rank in their peer groups) as part of your incentive program. Our top 5 get payouts based on placement. We have had all but 2 of our tellers achieve this goal over the past year!
• Hold regular meeting with Teller Supervisors to review TMS reports.
• Once a year hold a refresher class on TMS for your staff.
• Include managers and supervisors in the TMS incentive program. Have them receive a certain percentage based on their teller’s monthly performance.
Just like the USAF remotely piloted aircrafts and space command network, improving member service levels and optimizing staffing levels with TMS “Is Not Science Fiction.” Equipped with FMSI’s Teller Management System, Tyndall Federal Credit Union was able to retain and reward their best tellers and substantially enhance their scheduling process.
“It’s Not Science Fiction,” is the latest marketing campaign for the United States Air Force (USAF) highlighting its futuristic technologies, such as remotely piloted aircrafts and their space command network. Much like the USAF, Tyndall Federal Credit Union (TFCU) - which had its first office established on a Florida USAF base in 1956 - has been winning battles of their own with technological solutions from Financial Management Solutions, Inc. (FMSI). TFCU and its 9 locations, has benefited greatly from utilizing FMSI’s Teller Management System™ (TMS). They reduced turnover of their best tellers and enhanced their scheduling process, which led to an improvement in productivity and an optimization of their staffing.
Retaining and Rewarding Top Performing Tellers
Mario Luppino - Branch Operations Executive at TFCU - was aware of some staffing issues in his branch network. He was losing his best tellers due to an inequality in wages. Specifically, his top performers were not being rewarded for their exceptional service and they were leaving the organization. Mario needed a solution that would help him resolve his costly turnover problem.
Mario found FMSI and was excited to learn that the “technological” TMS solution was exactly what he was looking for. The monthly TMS report in essence collects and reports trends in critical areas of the teller area at the institution, branch and individual performer levels.
Having this information allowed Mario to determine exactly who his top talent was and he established a comprehensive incentive program that rewarded them based on key TMS performance indicators - such as transactions per hour (TPH). Mario described this experience by stating, “The implementation of The Teller Management System™ and specifically its incentive program was a huge success. I was able to retain my best tellers and we saw a favorable boost in our productivity numbers as a direct result.”
The following is a TFCU incentive plan related excerpt from “Talented Team Is Behind Tyndall FCU’s Growth and Success, Says CEO” - Credit Union Time April 14th, 2010 Edition
“One unexpected spinoff from the (incentive) plan has been enhanced communication among participants, HR and senior executives. Employees ask, "How can I get from a level 3 to a level 4?" That opens conversations offering performance feedback and new ideas.”
An Enhanced Scheduling Process
TFCU historically scheduled their tellers the best that they could. Without the “technological” TMS solution, they did not have a monthly report quantifying historic traffic patterns for each branch and they had to manually fill out the branch schedule, which was an arduous process. The TMS automated branch scheduling tool called the Online Scheduling™ (OLS) system significantly improved their scheduling process. OLS utilizes monthly transaction data to create an optimal full-time or part-time staff mix that best meets transaction volume forecast and productivity goals.
Along with expediting the arduous schedule creation process the OLS solution significantly improved account holder service. For example, longer wait times would sometimes result during peak lunch periods, due to many of the tellers being on their breaks. The automated scheduling tool immediately corrected this situation by scheduling the proper amount of tellers based on historic transaction volumes.
Best Practices from the Branch Operations Executive at TFCU
• Incorporate comparative benchmarking (where they rank in their peer groups) as part of your incentive program. Our top 5 get payouts based on placement. We have had all but 2 of our tellers achieve this goal over the past year!
• Hold regular meeting with Teller Supervisors to review TMS reports.
• Once a year hold a refresher class on TMS for your staff.
• Include managers and supervisors in the TMS incentive program. Have them receive a certain percentage based on their teller’s monthly performance.
Just like the USAF remotely piloted aircrafts and space command network, improving member service levels and optimizing staffing levels with TMS “Is Not Science Fiction.” Equipped with FMSI’s Teller Management System, Tyndall Federal Credit Union was able to retain and reward their best tellers and substantially enhance their scheduling process.
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