How ITM Strategy Became A Catalyst For Organizational Growth At Public Service

Indiana-based Public Service launched ITMs as part of a broader pivot to deepen member service.

Public Service Credit Union ($80.1M, Fort Wayne, IN) launched a small fleet of interactive teller machines last year, but the Hoosier State cooperative has made comprehensive organizational changes that are far broader than ITM strategy or simply putting new technologies in place.

ITM adoption surged during the pandemic as credit unions doubled down on electronic and digital channels to meet members’ needs while keeping staff safe. Post-pandemic, the machines have become an accepted part of the banking landscape and made it easier for shops of all sizes to serve consumers in new ways.

When front-line employees at Public Service pushed for remote work options during the pandemic — and after losing an entire branch worth of staff because they found remote work elsewhere — it became clear ITMs were a necessity.

Carolyn Mikesell, CEO, Public Service Credit Union

“We couldn’t offer [remote work] to the front-line employees, so we just kept losing people,” says CEO Carolyn Mikesell. “We decided the only way to really serve members well when we didn’t have staff was to use the machines.”

As part of its ITM deployment, Public Service also revamped how it serves members, focusing less on transactions and more on ensuring employees have time to sit down with members for meaningful conversations. All tellers were moved into financial advisor roles and put through a nine-month training process to better understand why the credit union was installing ITMs, what the new technology could do, how to work with members, and more.

During that transition period the credit union lost only two employees. One teller moved to a role at a brokerage that offered more flexibility and another decided the new role was not for them. But the separation was not bitter.

“That person said, ‘This is not my strength,’” Mikesell says. “They left, we shook their hand, wished them well, and they’re still a member.”

Public Service employee Jenn Lough, left, shows a member how to use one of the Indiana cooperative’s in-branch ITMs.
Public Service employee Jenn Lough, left, shows a member how to use one of the Indiana cooperative’s in-branch ITMs.

The remaining staff really embraced the credit union’s new approach when they realized it would offer greater career opportunities.

“The big thing that turned things around for employee buy-in was making it clear they have opportunities beyond what they were doing before,” says Robbie Boswell, branch manager at Public Service. “They have an ability to grow.”

Pushback? Offer A Personalized Approach.

Public service installed a test machine in May, four months before the official launch, to see how employees and members responded. By September, it had rolled out four machines — two in-branch, one at a drive-thru, and one at a kiosk location near a former branch site.

Not surprisingly, there was some pushback from members.

CU QUICK FACTS

PUBLIC SERVICE CREDIT UNION

HQ: Fort Wayne, IN
ASSETS: $80.1M
MEMBERS: 5,206
BRANCHES: 3
EMPLOYEES: 19
NET WORTH: 11.6%
ROA: 0.28%

“We’re a small credit union — we’ve got a bit over 5,200 members and probably 4,500 of those never set foot in the building; they do everything electronically or write checks and just don’t need to come in,” Mikesell says. “Those who come in think we’re trying to change their behavior to something they don’t want to do, which is to use electronic services. But as you teach them how easy it is to use and how and why we’re doing it, most have said, ‘I like that idea.’”

The financial advisor model also has helped. Members have an assigned financial advisor to address any of their banking needs, and they can request to work with specific employees.

“At the end of the day, everybody wants to be able to call and talk to their favorite person,” Mikesell says.

That kind of one-on-one approach also is benefiting deposit management. Now, Public Service staff reach out to members holding certificates maturing in 60 days to ensure the credit union is not going to lose those deposits to a competing institution. That call opens up the opportunity for conversations about what business members might have elsewhere and ensure they lock in the best available APY before interest rates go down further.

ITMs have replaced traditional tellers at Public Service Credit Union as staff shift into financial advisor roles that allow more in-depth interactions.
ITMs have replaced traditional tellers at Public Service Credit Union as staff shift into financial advisor roles that allow more in-depth interactions.

The end goal is to ensure optimal service for members no matter how they choose to do their banking.

“For us to offer the level of service we do, serving over 5,000 members with 20 people, we can’t have 10 of those people spending their entire day doing transactions,” Boswell says. “Those people need to be able to take more individualized time with members. They need to be able to stop everything they’re doing to serve members for however long it takes to resolve what’s going on. That can’t happen if we continue to operate in a traditional set-up.”

Next Steps, Lessons Learned

Robbie Boswell, Branch Manager, Public Service Credit Union
Robbie Boswell, Branch Manager, Public Service Credit Union

With its ITM fleet up and running, Mikesell says the next step is to expand opportunities for collaboration. Although some other credit unions have inquired about Public Service’s experience, the key priority for now is trying to get its core system and ITM vendor to work together to ensure members of other shops can use Public Service’s machines in a manner similar to shared branching. If and when that connectivity is accomplished, she adds, that could make it easier to spread more machines across the state.

When it comes to lessons learned, Mikesell says if she had to do the process over again she’d change how and when the training took place. The credit union conducted much of its training piecemeal before the machines were in place, she says, meaning staff didn’t have an in-house ITM to work with during part of the learning process.

But the experience has also been a lesson in change management.

“The most effective way to communicate with members about change and to mitigate their fears is by having a unified message” Boswell says. “Some employees initially struggled on what to say about what we were doing, some felt unprepared to guide upset members through the change. Having that strong, unified message from Day 1 is the most important piece for helping members understand and feel comfortable with the changes as well as giving employees an understanding of their mission in the change.”

January 13, 2025
CreditUnions.com
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