A new research report from Coconut Software and Future Branches Insights reveals a striking disconnect in the banking industry: while 76% of financial institutions claim to deliver an integrated hybrid banking experience, only 3% describe their maturity as truly “intelligent” or “optimized.” The report, titled “Branch Forward: How Financial Institutions Are Investing in Technology, Scheduling, and the Future of CX,” surveyed 100 senior financial institution leaders across the U.S. and Canada to uncover trends and challenges in branch transformation.
The findings point to a critical operational gap. Despite the widespread claim of integration, 61% of respondents said they frequently struggle to forecast staffing requirements to meet customer demand, with an additional 38% experiencing this challenge occasionally. This suggests that while institutions have made strides in connecting physical and digital channels, they lack the operational sophistication to optimize workforce planning in a hybrid environment.
To close this gap, banks and credit unions are increasingly turning to artificial intelligence. More than half (56%) of respondents said they are already implementing AI in specific departments or workflows, while 22% are scaling AI institution-wide. Looking ahead, over half have formal investment plans for AI-driven scheduling (58%) and intelligent advisor matching (58%), with 53% planning to invest in demand forecasting within the next 18 months.
The report also highlights a shift in how institutions view scheduling. No longer just an operational function, scheduling is now seen as a driver of revenue and branch performance. 54% of respondents said that appointment conversion value, or revenue per appointment, is the scheduling metric they are most focused on improving, and 38% ranked conversion optimization as their top business priority over the next 12 months.
Katherine Regnier, CEO of Coconut Software, commented, “Financial institutions have made significant progress connecting physical and digital banking, but the next stage of maturity isn't about adding more channels—it's about making every interaction more purposeful and productive. That requires institutions to better predict demand, connect the right people in the right place at the right time, and tie every interaction to clear outcomes. The institutions that solve that operational layer will be best positioned to turn hybrid banking into a true growth engine.”
The report also sheds light on technology investment strategies. 55% of respondents favor a best-of-breed, integration-first vendor strategy over vendor consolidation. When funding new technology, 65% cite strategic alignment as one of the two most important factors, while 42% emphasize customer impact such as NPS and CSAT. Additionally, 46% rank total cost of ownership as the most important factor in build-vs-buy decisions.
These findings carry significant implications for leaders in operations, retail banking, customer experience, and digital transformation. The gap between perceived and actual maturity suggests that many institutions may be overestimating their hybrid capabilities, potentially leaving them vulnerable to inefficiencies and missed revenue opportunities. As AI becomes more central to banking operations, those that invest strategically in scheduling and forecasting will likely gain a competitive edge, while others may fall behind.
The full report, “Branch Forward,” is available for download at coconutsoftware.com, offering data-backed insights to benchmark institutional approaches to AI, workforce planning, and branch performance. For more information about the research, visit wbrinsights.com.
