Legacy Bank in Pueblo, Co., spent its first 97 years with one location and a traditional teller line. But when the $180 million bank started expanding in 2004, ultimately opening five additional locations, a new approach to frontline employees was part of the strategy. Legacy dropped the idea of teller lines, added desks, and went to a more personal frontline approach.
Now the bank only hires customer service representatives.
In the year since its launch, Goldwater Bank in Scottsdale, Az., has grown to more than $50 million. The bank took advantage of a rapidly expanding area in Phoenix and targeted upscale clients. Personal bankers sit at pod-like stations, where each customer is invited to sit down for a one-on-one discussion. The personal bankers have some pyrotechnic tricks, like pulling up statements on private plasma TV screens, but primarily these employees are distinguished by the range of their capabilities.
In recent years, the definition of a customer service representative is based on the institution’s interpretation, which may vary from branch to branch and affect titles too. As many banks now use the term “personal banker.”
Some frontline employees work in a standard teller line, while others work at desks or in cubicles and manage more complicated issues. What they have in common is increased responsibility and a broad skill set. They open new accounts, help with loan applications, offer IRAs and CDs, answer questions about fraud, upgrade products. They help customers with their questions and concerns.
Goldwater Bank Chairman of the Board Larry Sheffield and Andrew Trainor, Legacy Bank regional president discussed what sets apart this new version of frontline employees.
Why did you choose to change the role of tellers so dramatically?
Trainor: “We migrated to that approach as we expanded. The bank itself is 100 years old, and as we started our expansion, we realized we wanted more of a full-service employee versus ones with very specialized functions. We decided we needed to hire employees who could handle more jobs.”
Sheffield: “This isn’t a retail bank—we’re on the second floor of a building, and we’re looking to offer a whole range of services to customers. We have a full-time concierge, a full-time courier, and the lobby looks like a country club. So we were looking for personal bankers to be able to make the experience that much more full-service.”
What’s the difference in terms of their responsibilities?
Sheffield: “They’re empowered to do everything, to be almost at the level of a branch manager. They’re empowered to make decisions right there—they don’t need to go get anyone’s signature. So for the customer it’s a one-stop.”
Trainor: “The typical CSR will be able to open all types of accounts, cash checks and take deposits. We also run branch capture, so at each teller station, they are the proof operator as well. Right now they don’t do any lending, but they do prepare all loan documents and all deposit documents. When a customer comes in the bank, we don’t even have teller lines. They come in and sit down at the customer service desk with a banker, even if they’re only coming in to cash a check.”
Where do you find a good personal banker?
Trainor: “They have to have a real good handle on what they’re doing. And you want them to be familiar with the business of banking. The typical way I like to find an employee is if I’m in another business, maybe a restaurant, and I see the qualities I think would work well for us, I may contact them. We don’t do a lot of employee searching.”
Sheffield: “We don’t hire anyone not seasoned. They’ve come from banking backgrounds and understand the business as well as the details.”
So if you’re looking for a broader skill set, do you need to pay a personal banker more than a traditional teller?
Trainor: “Our pay scale is higher, but we have fewer people doing the same amount of work. Overall, because they’re performing so many functions, I think it’s less expensive from an overhead standpoint. You’re paying for the skills. We want our people to understand not only the jobs they’re doing, but the business itself. We very seldom hire from outside the bank for managers—we hire from within. We want to build bankers, not just order takers.”
Sheffield: “Why would you put your lowest pay employee where you have the most customer interaction? We empower and pay our people very well.”
What about the negatives, is there any downside to switching to customer service reps?
Trainor: “The downside is sometimes we overload an employee because they’re expected to juggle a lot of balls. Our managers have to watch to be sure we don’t wind up with lack of productivity because we’re expecting a lot. 
