Sunmark set out to do both with a smaller, automated branch design at its new Rotterdam, N.Y., location.

"Our strategy was to deliver a common suite of financial services across a diverse set of channels to our members on any device, at any time, from any place," Darryl Eneld, vice president/chief information officer at Sunmark, said. Out of that approach came several technology innovation schemes including the key interactive teller machine project.

Sunmark began in 1937 as Schenectady GE Turbine Department's FCU #1884. The credit union opened its first standalone branch (still home to its Schenectady branch) in 1973. Ten years later the name changed to Turbine FCU. In 1997, the credit union changed its name to Sunmark and broadened its community charter.

The credit union's current strategic plan is to transform branches into more compact, lower cost, brick-and-mortar buildings. That meant shrinking its size from a typical 3,000-square-foot location to 1,500 or less. The credit union also wanted to resurrect a Rotterdam branch, which had closed several years ago after a popular run. So, Sunmark rolled the new branch design, and transformation to self-service interactive teller machine technology and no teller line, into one big project.

Branch transformation via automation was not totally new to the credit union, having adopted cash recycling in most branches in 2014 with measurable success. But Sunmark leadership wanted to complement recyclers with assisted self-service technology.

"The first thing Sunmark worked on was putting the right people in the right positions, performing the right job function," Enfield said. He emphasized implementing new systems requires people, process and technology, in that order. "I put technology last." The cross-functional project team, comprised of 28 individuals, represented Sunmark and four partner companies.

Also critically important when trying to innovate are partner relationships. Enfield noted most of the vendors interviewed wanted to direct the credit union on how to implement the technology. "They didn't really want to hear our story of how we wanted to implement it."

Sunmark wanted a pure self-service method where members could transact on their own. Enfield recalled, "When I started doing my research on interactive-teller machine technology, I learned very quickly that all of the solutions currently in the marketplace primarily required someone on the back end to basically drive the equipment and perform the transaction for the member."

David Pepin, COO of BranchServ, which provides physical security service and equipment solutions for retail financial institutions, said Sunmark needed to do some things differently and engaged with the Bethel, Conn.-based company.

"They were an existing customer [for the cash recyclers]," Pepin pointed out. His firm procures products from many best of breed vendors and delivers, integrates, trains and provides support for the various products and technology it sells. "[Sunmark] wanted to know what technology was available in the marketplace to enable its vision and strategy."

The Sunmark team ultimately selected the Nautilus Hyosung MX8800 (lobby) and 7800I (drive-up) ITMs, as provided by BranchServ. The technology provided self-service to members and universal bankers, replete with tablet in hand, with an extensive range of transaction options from account withdrawals to loan payments. In addition, the equipment allowed Sunmark to provide video support services to complement branch assistance.

The new Sunmark branch in Rotterdam ofcially opened in April 2017 with universal bankers, one recycler, two MX8800s in the lobby and two 7800Is at drive-thru lanes. The credit union provides help and support in person at the branch and through remote video tellers centralized at its Member Solution Center.

According to Eneld, "Our interactive teller machines are dual-hosted, meaning they are integrated with both our core banking system [Fiserv's Spectrum] as well as the ATM network through MasterCard." The conguration allows non-members to perform typical ATM transactions on the same hardware. This eliminated the need to purchase additional ATM specic hardware and provided one delivery channel for both member and nonmember banking transactions.

The automated branch is resonating with members quicker than expected. Enfield noted the Rotterdam branch currently processes just under 11,000 transactions per month with about 75% of those performed at the two drive-thru ITMs.

Of those drive-thru transactions, only 3% require remote video assistance. "When we got into this we thought we were going to have to hire an army of people. We found it's been just the opposite." Optimally, the credit union would like two people overseeing some 15 to 20 ITM devices.

Sunmark attributes its successful adoption rate to its ability to instruct members. "We're going to educate, we're not just going to put the technology out there and expect everybody to use it," Enfield said. Effective in-branch equipment training allowed members to quickly transition to drive-thru usage, which overtook Rotterdam in-branch business.

Rotterdam personnel now have more time dedicated to cross-selling. The branch has logged a signicant number of platform advisory consultations including staying open later occasionally to accommodate the overflow of one-on-one appointments.

Key success factors for the automated branch include:

A solution for all. Eneld insisted, "You can't abandon any one group to the exclusion of others." This was especially important given that each branch has different demographics.

Employee selection and training. Sunmark involved personnel early in the process. Exposure from the testing phase going forward ensured employees believed in the technology.

The personal touch for members. Human assistance is a critical complement to self-service technology. Per Eneld, teller-less branches fail miserably for a reason. He stated, "If you think you can put this technology in place without people to support it, you are positioning yourself for failure. You must invest in people, handholding and training."

Design inside and out. In designing Rotterdam, Sunmark decided not to put walls behind the branch ITM units to facilitate after-hours access. This simplied architectural design and helped migrate people to the drive-thru.

Because of successes at the Rotterdam branch, the credit union plans to expand its automated concept to all existing branches, and any new locations, over the next two to three years.

One thing Sunmark learned that seems contrary to the industry mantra is about millennials wanting just mobile technology and older folks being more branch oriented. "We're really learning that it's the opposite," Enfield said. "We're essentially serving four generations of people." He pointed out, "In our situation even the younger people want to sit down and talk and even the older people like the cell service."

Eneld explained, "We continue to bridge the physical and digital worlds to enable the delivery of a common set of member services, with a consistent member experience, across an integrated set of delivery channels; to any device, at any time, and from any place."

Sunmark's branch automation helped it receive a 2017 CIO 100 award, which each year identifies and honors 100 organizations worldwide that have distinguished themselves in the creation of business value through effective and innovative IT use. Sunmark was the only credit union in 2017 to receive this honor.

Other 2017 CIO 100 Honorees included: Accenture, Adobe, the City of Boston, Discover Financial Services, the Federal Communications Commission, IBM Research, Jet Propulsion Laboratory, Samsung Electronics DS Division, the County of Los Angeles, TransUnion, Verizon, VMware and the World Bank Group.