A new report from Coconut Software, developed with Future Branches Insights, uncovers a troubling disconnect in the banking industry: while 76% of financial institutions say they deliver an integrated hybrid banking experience, only 3% describe their maturity as truly 'intelligent' or 'optimized.' This gap between perception and reality is further underscored by the fact that 61% of institutions frequently struggle to forecast staffing requirements to meet customer demand.
The report, titled 'Branch Forward: How Financial Institutions Are Investing in Technology, Scheduling, and the Future of CX,' is based on a study of 100 senior financial institution leaders across the U.S. and Canada. It reveals that despite progress in connecting physical and digital banking, operational readiness lags significantly. This hybrid maturity gap poses a critical challenge as banks and credit unions aim to enhance branch performance and customer experience.
The findings indicate a strong push towards AI integrations to bridge this gap. More than half of respondents (56%) are already implementing AI in specific departments or workflows, and 22% are scaling AI institution-wide. Additionally, 58% have formal investment plans for AI-driven scheduling and intelligent advisor matching within the next 18 months, with 53% planning investments in demand forecasting.
Scheduling is increasingly viewed not just as an operational function but as a driver of revenue and branch performance. 54% of respondents said they are most focused on improving appointment conversion value, or revenue per appointment, and 38% ranked conversion optimization as their top business priority over the next 12 months.
Other key findings from the report include: 55% favor a best-of-breed, integration-first vendor strategy over consolidation, 65% say strategic alignment is a top factor when funding new technology, and 46% rank total cost of ownership as the most important factor in build-vs-buy decisions.
Katherine Regnier, CEO of Coconut Software, explains, "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 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 underscores the urgent need for financial institutions to address the operational gaps that hinder their hybrid banking strategies.
For those looking to explore the full findings and benchmark their institution's approach, the report is available for download at Coconut Software.
