Joyce Moed | Technology Samples

Live Teller Banking

By Joyce Moed, Reporter

KINGSTON, N.Y.–It’s 3 a.m. You want to withdraw funds from your checking account with the help of a live teller, and print new checks. If you are a member of Mid-Hudson Valley Federal Credit Union here, that would be no problem.

Mid-Hudson Valley FCU has launched 24/7 live teller banking, something the CU claims is the first in the nation to provide this service.

Bill Spearman, president and CEO of Mid-Hudson Valley FCU, says the effort was a partnership with Gene Pranger, president of Gene-Pranger-Creating Smaller Branches, in Salt Lake City, Utah.
The new service was officially launched on March 24, and will provide all banking services except for traveler’s checks, money orders and gift checks to its members at any hour of the day, any day of the week–with the exception of only Christmas and Thanksgiving. “But we’re not done developing the process, so anything is possible,” Spearman said.

The 24/7 service is being offered at two of the credit unions’ branches–it’s main central branch in Kingston, and its newest branch in Rhinebeck, N.Y. Members can connect to a teller through a PTM, where they can have cash and coins dispensed without using a roll. The teller is based on the third floor of the main central branch.

“Rhinebeck happened to be in the process of being built,” Spearman said, and the decision had to be made whether this branch was going to be one with live tellers or with RTMs or PTMs.

“The amount of research on this is limited,” he said. “We took some risks. Time will tell how we do. It will take some time.”

The idea first came to Spearman during a meeting he attended in 2004 about PTMs. He then came back and talked to the credit union’s board.

“We renovated our main center, and had a 24 by 7 tower built,” he said. “Our first external office offering it is in Rhinebeck, so it’s in two locations now. Our goal is to eventually replace all of our RTMs with PTMs. It’s pretty exciting. When we just heard about it four years ago, we were intrigued. Now others are inspired by our ability to do it.”

On April 22, the credit union and Gene Pranger-Creating Smarter Branches together hosted an open house and technology administration to show other credit unions their plan. One direction the credit union could take this is to provide this service to other credit unions through its call center. Attendees were able to see the call center, the remodeled branch in Kingston and the new technology branch in Rhinebeck.

“We had eight credit unions attend,” Spearman said. “This may prove to be an opportunity to help support other credit unions. One call center could serve any branch in the U.S.”

Another option the credit union is looking at is placing PTMs in Wal-Mart stores, since the majority of those stores are already open 24/7.

“It would be a great opportunity,” Spearman said. “We’ve been talking to them for more than a year about placing them in two locations.”

Still one more option could for this to be outsourced eventually, with Mid-Hudson FCU paying by the minutes used.

So far, Spearman said that member acceptances has been “very good,” and stressed that though this is almost all based on technology, the credit union itself is still based on people, and offers face-to-face services in its branches from 7:30 a.m. to 6 p.m. Monday through Thursdays, 7:30 a.m. to 7 p.m. on Fridays, and 9 a.m. to 2 p.m. on Saturdays.

“We’re still a people business,” he said.

“The feed back has been mostly very good, although ATM users just want to use an ATM.”
The credit union is beginning to analyze the data of who, and how many people, are using the PTMs at late-night or early morning hours to conclude if the payback is worth the finances invested.

“We’re developing a spreadsheet to determine what our break-even point will be. We’ve been promoting it to our select employee groups, including those in retail who work extended hours,” Spearman said. It is also being promoted through radio and cable commercial, press releases and print ads. A local newspaper has also been carrying the story at different stages of the process.
It’s very unique, and there is a market for this.” Spearman said. “This is a three-shift operation, with at least two people there at all times. Security is not an issue. We don’t have an unsafe area. We’re very suburban.”

Spearman said that while this does allow for dialogue with a teller, and being able to question things such as check holds at any hour, it is not for everyone.

“It’s not an ATM, not just a cash dispenser that some people prefer,” Spearman said. “And on the other side, it’s friendly, but a bit-more removed that an in-person teller. People to feel good about a person being involved, but it’s not for everyone. It is banking on members’ terms. I think it’s pretty special. I’m hoping by 2009 there will be a drive-up model.”