Traditional Tellers Offer Tried-And-True Benefits

Point/Counterpoint: Looking for a different take on the teller line? Branching experts share the pros and cons behind ditching the traditional teller role in favor of a new staffing model in “Universal Tellers Take Credit Unions Beyond Basic Banking.”

Credit unions today often find themselves making a critical choice in the rapidly changing financial world: should they adopt the universal banker model or stick with the conventional teller-based structure?

Even as universal bankers add flexibility and efficiencies to a digital banking space where self-service technology is on the rise, many cooperatives hold steadfastly to the conventional service model, viewing traditional tellers as the mainstay of their member care approach.

Irreplaceable Relationships

Advocates of the traditional teller model point to the strong relationships it fosters between members and staff, relationships that are a key differentiator for credit unions that market themselves as neighborhood financial institutions providing more than financial services.

“Tellers provide member experience daily and have saved many from major life tragedies due to knowing them personally,” says Lisamarie Meyer, senior vice president and director of retail branches at TruStone Financial Credit Union ($5.2B, Plymouth, MN).

Across 23 branches in Minnesota and Wisconsin, TruStone’s 90 tellers — 38 designated as lead tellers — are the face of the organization, the critical first point of contact when members walk through the door.

Unlike the universal banker model, which combines multiple roles, traditional tellers specialize in direct transactions, allowing them to focus entirely on meeting members’ immediate financial needs.

“Members love the teller line,” Meyer says. “Many of our employees know them personally.”

Similarly, Jamie Applequist, chief delivery officer at State Employees’ Credit Union ($56.5B, Raleigh, NC), says tellers remain crucial for members who value personal interaction. That’s important for his expansive branching network that includes 3,800 full-time employees at 275 branches in all 100 counties in the Tarheel State.

“Our member service focus is still largely a traditional model on the teller line,” he says. “Although the overall volume is not as high as it once was, our branches remain quite busy. When there is downtime, these employees can assist in other areas of the branch, performing tasks that include account maintenance, lending inquiries, and safe deposit box assistance, to name a few.”

And although career advancement is cited as a benefit of the cross-training required for universal bankers, such opportunities exist at traditional shops, too.

“We have a career path for all branch and member services support center [call center] employees,” Applequist says. “This creates a structured approach and affords numerous opportunities for each employee to develop and advance their careers at SECU.”

Ensuring consistency in service quality and adding staff to accommodate growth across such a large organization is no small feat, but SECU believes in the value of providing local decisions and personalized service in each of its branches. Applequist adds that “local decisions and servicing are key,” emphasizing how SECU’s decentralized approach helps build trust with its members.

Challenges And Benefits

Operating under the traditional teller structure can present challenges, it also offers benefits that credit unions like UVA Community Credit Union ($1.5B, Charlottesville, VA)  have come to value. With 14 branches and approximately 90 branch employees, UVA maintains a structure with clearly defined roles.

“Our members feel a comfort level of having a traditional structure,” says Belinda Tucker, chief operating officer at UVA Community since December 2022. “They know where to go for the services they need, and there’s a familiarity in the process.”

However, this comfort comes with operational constraints. Tucker notes that UVA Community is exploring new approaches to reduce wait times and improve self-service options as it mulls the effects of sticking with the status quo.

Meanwhile, the Virginia credit union continues to lean on the traditional teller model because of its member-focused nature. Long lines and limited self-service options remain ongoing challenges, but Tucker believes the benefits of face-to-face service outweigh the drawbacks.

A Possible Shift

As some credit unions remain steadfast in their commitment to traditional tellers, others are considering a shift toward the universal banker model.

Palmetto Citizens Federal Credit Union ($1.3B, Columbia, SC) operates 14 branches with 67.5 full-time teller equivalents. Its leadership is in the early stages of evaluating a move to universal bankers in response to the shifting landscape of financial services.

“As our members have become increasingly comfortable with online and mobile banking, the need for in-branch visits has declined,” says chief operating and financial officer Michael Beam, who has been with the Columbia-based cooperative for nearly 40 years.

This shift in member behavior is prompting Palmetto to rethink its branch strategy. However, the credit union is cautious about making widespread changes too quickly.

“We would likely test the concept in one of our smaller branches before implementing it across the board,” Beam says, noting that the larger, busier branches might still require specialized roles to maintain operational efficiency.

Palmetto’s approach underscores the careful balance credit unions must strike when considering new service models. Although the universal banker model offers the potential for greater flexibility, it might not be the right fit for every branch. Beam says Palmetto recognizes this and is committed to evaluating all factors — including member preference — before making a final decision.

Why Many Stick With Traditional Tellers

For institutions like TruStone and SECU, the traditional model aligns with their core mission of delivering personalized, relationship-based service. Tellers are not just transaction processors — they are integral to the member experience.

Meyer, who has been at Twin Cities-based TruStone for a dozen years, sees tellers as critical to maintaining the trust that members have in their credit union.

 

TruStone’s Maple Grove branch includes, from left, retail branches director Lisamarie Meyer and tellers Stacy Share, Molly Sanders, and Bailey Anderson.

TruStone’s Shakopee branch includes, from left, tellers Karlyn Carlson and Charlie Hoernemann, lead teller Elyse Brown, and retail branches director Lisamarie Meyer..

“Changing everyone to the universal model may offer efficiency but at the expense of a member experience that TruStone strives to deliver,” she says.

Other credit unions echo this sentiment that the traditional teller line is essential to their service philosophy.

For SECU, the decision to stick with traditional tellers also is rooted in its mission. Applequist highlights that SECU’s “Do the Right Thing” mentality permeates all levels of the organization, including the teller line. Indeed a credit union can recognize that the universal banker models offer operational efficiencies while believing the dedicated teller model better fits its commitment to the value of face-to-face interactions.

“Our service structure is built around our mission to be the trusted provider of financial services to every eligible member,” Applequist says.