Credit unions everywhere are feeling the pressure of a tight labor market, and Credit union labor shortages are making it even harder to operate. Finding the right people for branch roles is becoming harder, more expensive, and more time-consuming. Many leaders are asking the same thing: How do we keep delivering great service when there are fewer people available to do the work?
More and more credit unions are finding the answer in a thoughtful shift toward self-service technology inside the branch.
Why the Labor Shortage Is Hitting Credit Unions So Hard
Several nationwide trends are hitting financial institutions at once:
1. Fewer applicants for traditional teller roles
Younger workers are less interested in routine transactional jobs. Teller roles are harder to fill, and turnover remains high.
2. Rising costs of labor and training
Hiring and training new employees has become noticeably more expensive. In some markets, onboarding costs are now twenty to forty percent higher than they were before 2020.
3. Competition from remote and flexible jobs
Many Americans who worked in branches before the pandemic have transitioned to remote-first industries. Credit unions cannot always match that flexibility.
4. Member expectations are changing
Members want faster service, extended hours, and modern experiences. Delivering that through a traditional branch model requires more staffing, not less.
Because of that reality, many institutions are asking how to maintain strong member service without relying on larger and larger teller teams.
Hawaii State FCU: A Real Example of Solving the Staffing Challenge
Hawaii State FCU faced the same labor constraints many institutions face today. Real estate is expensive, branch staffing is difficult, and they needed a way to operate effectively in smaller spaces.
In their words:
“One of the things we know we needed to do is simplify onboarding for new branch employees. We can now train people in four days instead of two weeks.”
– Aaron Vallely, EVP, Hawaii State FCU
By migrating the majority of transactions to core integrated ITMs, Hawaii State FCU reduced the pressure on staff and improved the member experience at the same time.
Their branches reported:
Transforming the Branch Helps Address Labor Shortages Without Sacrificing Member Experience
Self-service is more than a technology play. It is an operational model that provides credit unions flexibility during staffing shortages while improving service levels.
With a modernized branch model, credit unions can:
The institutions that invest in branch transformation today are positioning themselves to thrive, even as the labor market remains tight.