A new research report from Coconut Software, developed with Future Branches Insights, uncovers a significant disconnect between how financial institutions perceive their hybrid banking capabilities and their actual operational efficiency. The report, titled 'Branch Forward: How Financial Institutions Are Investing in Technology, Scheduling, and the Future of CX,' is based on a survey of 100 senior leaders at banks and credit unions across the U.S. and Canada.
While 76% of respondents state they deliver an integrated hybrid banking experience, a mere 3% describe their operational maturity as 'intelligent' or 'optimized.' This disparity highlights a critical area for improvement, as 61% of institutions frequently struggle to forecast staffing requirements to align with customer demand. These findings suggest that many institutions have invested in digital channels but have not yet mastered the underlying operational coordination needed to deliver seamless customer experiences.
The report indicates that financial institutions are increasingly turning to artificial intelligence to close this gap. More than half (56%) of respondents are already implementing AI in specific departments or workflows, and 22% are scaling AI institution-wide. Over the next 18 months, more than half have formal investment plans for AI-driven scheduling (58%) and intelligent advisor matching (58%), while 53% plan to invest in demand forecasting. This surge in AI adoption reflects a strategic shift toward using technology to optimize branch performance and meet evolving customer expectations.
Scheduling is emerging as a key driver of revenue and branch performance, rather than just an operational necessity. The research shows that 54% of leaders focus on appointment conversion value as their primary scheduling metric, and 38% rank conversion optimization as their top business priority for the next year. This focus underscores the growing recognition that efficient scheduling directly impacts the bottom line by ensuring the right advisors are available to meet customer needs and capitalize on revenue opportunities.
The report also delves into technology investment strategies. A notable 55% favor a best-of-breed, integration-first vendor approach over consolidation, indicating a desire for flexible, specialized solutions. Strategic alignment is a critical factor for funding decisions, cited by 65% of respondents, while 42% consider customer impact metrics like NPS and CSAT. Additionally, 46% rank total cost of ownership as the most important factor when deciding between building and buying technology.
Katherine Regnier, CEO of Coconut Software, emphasized the need for institutions to move beyond channel expansion. 'The next stage of maturity isn't about adding more channels—it's about making every interaction more purposeful and productive,' she said. 'Institutions that solve the operational layer will be best positioned to turn hybrid banking into a true growth engine.'
The report is designed for operations, retail banking, customer experience, and digital transformation leaders, offering data-backed insights into AI adoption, workforce planning, scheduling maturity, and technology investment. It aims to help institutions benchmark their strategies and improve branch performance. To explore the full findings, the report is available for download at coconutsoftware.com.
