As more people choose to bank online, the role of the traditional branch has undergone a transformation. Once the go-to place for every financial need, the branch is now primarily a hub for more complex transactions that can’t be completed digitally or at an ATM.

At the center of this evolution is the interactive teller machine (ITM), which enables customers to connect with a live teller at any time of day, regardless of their distance from a physical branch. In a PaymentsJournal Podcast, Fiserv’s Chris Geganto, Senior Director of Product Strategy, and Craig Demetres, Vice President of ATM Product Management, spoke with James Wester, Co-Head of Payments at Javelin Strategy & Research about how ITMs are driving operational efficiency, lowering costs, and enhancing the customer experience at banks and credit unions across the country.

The financial institution branch is no longer just a place for simple financial transactions. It now serves as a vital connection point between consumers and the FI’s brand, its people, and its promise. Branches blend digital and physical touch points to deliver the kind of seamless customer journey that financial institutions have worked hard to create.

Today’s branches even look different. Instead of a row of teller windows that once felt formal and uninviting, modern branches are open, welcoming spaces designed to foster personal relationships. They’re now tailored to support higher-value transactions rather than routine deposits and withdrawals. 

And while much of banking has shifted online—or to ATMs to a lesser extent—banks and credit unions still need to provide customers with a meaningful, in-person experience.

“We still have a very personal relationship with our bank account, and with our money,” said Wester. “We still want to have a very personal relationship with our bank. Being thoughtful about preparing the branch for that relationship is very important.”

One challenge for every financial institution is balancing automation with empathy. Automation is about being fast and convenient—handling routine, rule-based client interactions quickly, consistently, and accurately. It addresses most of what consumers need from their bank, but it can also feel impersonal.

Empathy sits at the opposite end of the spectrum. It’s thoughtful and personal, building trust and emotional connection, and ultimately deepening the customer’s relationship with the financial institution. It’s also slower and more cumbersome for the consumer, but there are times when it is sorely needed. Filing for a home loan or opening a small business account, for instance, often comes at a critical juncture in a customer’s life.

“Finances really drive the human moments that matter for us,” said Geganto. “When you walk into a branch, you’re freeing your bankers up for those human moments, for those conversations about what matters most in your life.”

Automation doesn’t always have to feel impersonal. With smart design and proactive messaging, banks can provide a seamless handoff to advisors so everyone is working with the same information. While consumers may start with an automated interaction, many will transition to a more personal connection. To keep that experience consistent, FIs must be intentional about embedding empathy into the digital journey that leads to an ITM.

“Although it’s automated, it’s still a personal relationship between the banker and the actual customer itself that directs them to the actual ITM,” said Demetres. “These small credit unions and financial institutions need to make sure that they still have the person there to interact with the customer, whether it be on video or in person.”

An ITM essentially extends the branch experience, expanding service hours and the geographic reach of the branch. It gives consumers the flexibility to conduct transactions on their own schedule, while still providing access to a human when needed.

ITMs also unify the digital and physical channels, bringing channel convergence to life.

“Your brand ethos is coming through that machine because you have trained your universal bankers who are on the other end of that machine in the engagement model that you spent so much time and effort and money to develop,” said Geganto. “It’s being replicated in a digital fashion.”

For any smaller bank or credit union considering an ITM, the first question should be whether the experience can be customized. Can multiple languages be added to support the customer base? Will the voice guidance convey the right tone? Do the visual elements on screen reflect the brand? The automation should feel like a natural extension of the institution, not a generic out-of-the-box solution.

Staffing the ITM is a crucial part of the overall model. The team on the other side of the video must understand that the customer is navigating the system on their own but is seeking guidance. They need to be trained to recognize the types of critical situations that would bring a customer to the ITM, as well as to understand the strategy that the financial institution is deploying.

They also need to monitor the data being collected closely. Reviewing analytics is a necessary part of making sure the strategy is effective and to identify areas for adjustment.

“The banks and credit unions have to make sure they are being efficient while still keeping that human touch,” said Demetres. “They have to see what accounts and transactions are working, while keeping the human involvement.”

ITMs have proven especially beneficial to credit unions and smaller banks that may not have the capacity for a fully staffed branch with extended hours. They can personalize ITMs to their own needs, reinforcing their brand while enhancing the ability to bring a personal touch to customer interactions. Whether a customer needs to complete a simple transaction or a more complex one, whether they require automation or a human touch, an ITM delivers.

“First and foremost, it keeps the human in the loop, because finances are freely personal,” said Geganto. “When you remove the person, finances are just finances. You need the personal touch because it’s about helping them through those life moments. For every consumer you do that with, you’re building trust and transforming them into a brand ambassador for you.”

Demetres added: “The customer needs to know that there’s always somebody there to support them. ‘Oh, I got this now. I’m never going to have to ask somebody how to use an ATM… how to use an ITM going forward.’ That’s a customer for life.”