Sixty percent of credit union leaders say talent shortages could hold back their strategic priorities in 2026, according to recent industry research. And it is not just a recruiting problem. The Bureau of Labor Statistics estimates roughly 35,100 teller positions will need to be filled every single year over the next decade as workers exit the industry or move into other roles.
For credit unions already stretched thin, the math does not work. You cannot deliver modern member experiences, keep branches staffed during peak hours, and control labor costs all at the same time — not with a traditional branch model.
But there is a different path forward. Credit unions that have invested in self-service technology inside the branch — core-integrated ITMs, cash recyclers, and self-service kiosks — are discovering they can operate effectively with smaller teams while actually improving the member experience.
Why the Staffing Crisis Keeps Getting Harder
The credit union staffing shortage is not a single problem. It is several trends hitting at the same time, and each one makes the others worse.
Teller roles are the hardest to fill and keep filled
According to Crowe, the teller position remains the single most difficult role to fill across financial institutions. Average annual turnover in financial services runs around 16-20%, and a significant portion of that is concentrated in frontline branch roles. Younger workers are less interested in routine transactional jobs, and the ones who do accept them often move on quickly.
The cost of hiring and training keeps climbing
Every time a teller leaves, you are looking at recruiting costs, onboarding time, and weeks of reduced productivity before the replacement is fully up to speed. Some credit unions report that onboarding costs have increased 20 to 40 percent since 2020. Multiply that by a 16-20% annual turnover rate and the expense becomes a serious operational drag.
Remote work reshaped the labor pool
Many workers who previously filled branch roles moved into remote-first industries during the pandemic and have not come back. Credit unions cannot always compete on flexibility — branches need people physically present. This shrinks the available talent pool in ways that higher wages alone cannot solve.
Members expect more, not less
Extended hours, faster transactions, and personalized service are now the baseline. Delivering that through a traditional model requires more staffing, but the labor market is pushing in the opposite direction. Something has to give.
Self-Service Technology Closes the Gap
The credit unions that are navigating staffing shortages most successfully are not just hiring harder. They are rethinking how branches operate. Self-service technology — particularly core-integrated ITMs — allows institutions to shift the majority of routine transactions away from tellers and onto machines that members can use independently or with remote video assistance.
This is not about replacing people. It is about freeing your team to do the work that actually requires a human: complex account issues, loan consultations, financial guidance, and the relationship-building conversations that drive member loyalty. The routine transactions — deposits, withdrawals, check cashing, loan payments, transfers — move to self-service channels where members can complete them faster, often outside traditional business hours.
With a modernized branch model, credit unions can:
- Operate efficiently with smaller teams — fewer tellers needed for routine transactions means less exposure to turnover
- Cut onboarding time dramatically — training staff to assist members with ITMs takes days, not weeks
- Extend service hours without extending labor hours — ITMs and kiosks can handle transactions after branch staff go home
- Build branches in smaller, more affordable footprints — less counter space, lower real estate costs
- Redirect staff toward higher-value member interactions — the conversations that improve retention and drive revenue
Real Results: Hawaii State FCU Cut Onboarding from Two Weeks to Four Days
Hawaii State FCU faced the same staffing constraints many institutions deal with today — expensive real estate, difficult branch hiring, and the need to do more with less space. By migrating the majority of transactions to core-integrated ITMs, they fundamentally changed how their branches operate.
“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
The results spoke for themselves: 96% of members across all generational segments said they would likely use the ITM again. Branch employees now spend more time having meaningful conversations instead of handling cash. And new concept branches operate in far smaller footprints, reducing both cost and staffing pressure.
Hawaii State FCU is not an outlier. Credit unions across the country are seeing similar results when they invest in core-integrated self-service technology – smaller teams delivering better experiences, with dramatically lower training overhead and reduced exposure to the turnover cycle
The Bigger Picture: Branch Transformation as a Staffing Strategy
It is easy to think of self-service kiosks and ITMs as a technology investment. They are. But for credit unions facing chronic staffing shortages, branch transformation is also a workforce strategy.
When 60% of your industry’s leaders say talent shortages are threatening their strategic goals, the answer is not just to try harder at recruiting. It is to build a branch model that is less dependent on headcount to begin with — one where a smaller, better-trained team can deliver an equal or better member experience.
That is exactly what self-service technology enables. Up to 90% of traditional teller-assisted transactions can be performed in a self-service environment with today’s branch transformation technology. Cash recycling functionality reduces ATM cash loading frequencies, cutting armored service costs. And core integration means members can do nearly everything at an ITM that they could do with a teller — from mortgage payments to check cashing with bill and coin dispensing.
The institutions investing in this shift today are not just solving a short-term hiring problem. They are building branches that can thrive regardless of what the labor market does next.
What to Consider if You Are Exploring Self-Service
If your credit union is feeling the pressure of staffing shortages and you are evaluating branch transformation options, here are the key factors to think through:
- Core integration matters. An ITM that is not integrated with your core banking system is just a fancy ATM. Core integration is what enables the full range of teller-equivalent transactions.
- Start with your highest-traffic branches. That is where self-service adoption will have the biggest impact on staffing relief.
- Consider ATM outsourcing. If managing a fleet of ITMs and ATMs sounds like it would add complexity rather than reduce it, an outsourced model handles procurement, monitoring, maintenance, cash management, and compliance — all for a flat monthly fee.
- Measure training time and turnover cost. These are often the hidden expenses that self-service technology addresses most directly.
NextBranch works with credit unions and banks across the country to deploy core-integrated ITMs, manage ATM fleets, and build branch models that operate effectively with smaller teams. Whether you are looking at a full fleet replacement or exploring outsourced ATM management, we can help you find the right fit. Schedule a free consultation here.
Frequently Asked Questions
How are credit unions solving labor shortages?
Many credit unions are investing in self-service technology like interactive teller machines (ITMs) and self-service kiosks to shift routine transactions away from tellers. This allows branches to operate effectively with smaller teams while maintaining or improving member experience. Some institutions are also exploring ATM outsourcing to reduce the operational burden on existing staff.
What is an ITM and how does it reduce staffing needs?
An interactive teller machine (ITM) is a self-service terminal that allows members to complete most transactions they would normally do with a teller — deposits, withdrawals, check cashing, loan payments, and more. When core-integrated, ITMs can handle up to 90% of traditional teller transactions. This means fewer tellers are needed on the floor, and the ones who are present can focus on complex member needs rather than routine transactions.
Is ATM outsourcing a good option for credit unions with staffing challenges?
ATM outsourcing can be a strong option for credit unions that want the benefits of modern self-service technology without adding fleet management complexity to their already stretched teams. An outsourced model covers procurement, monitoring, maintenance, cash management, and regulatory compliance for a flat monthly fee, freeing internal staff to focus on member-facing activities.