A new research report from Coconut Software, developed in partnership with Future Branches Insights, uncovers a significant disconnect in the banking industry: while 76% of financial institutions claim to offer an integrated hybrid banking experience, only 3% describe their operational maturity as truly "intelligent" or "optimized." 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 from banks and credit unions across the U.S. and Canada.
The findings point to a critical operational gap: 61% of respondents frequently struggle to forecast staffing requirements to meet customer demand, and an additional 38% face this challenge occasionally. This gap between digital integration and workforce planning suggests that despite progress in connecting physical and digital channels, many institutions are not fully prepared to optimize branch performance.
The report also highlights a rapid uptick in AI adoption. More than half (56%) of institutions are already implementing AI in specific departments or workflows, while 22% are scaling AI institution-wide. Additionally, within the next 18 months, 58% have formal investment plans for AI-driven scheduling and intelligent advisor matching, and 53% plan to invest in demand forecasting. This investment reflects a recognition that AI can help bridge the gap between customer expectations and operational efficiency.
Furthermore, the research indicates a fundamental shift in how financial institutions view scheduling. Rather than seeing it as a mere operational function, 54% of respondents now consider appointment conversion value—revenue per appointment—as the most important scheduling metric. Conversion optimization ranks as the top business priority for 38% over the next year. This shift underscores the growing importance of scheduling as a revenue driver and a key component of branch performance.
"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," said Katherine Regnier, CEO of Coconut Software. "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 reveals that 55% of institutions 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% prioritize customer impact metrics like NPS and CSAT. Additionally, 46% rank total cost of ownership as the most important factor in build-vs-buy decisions.
Designed for operations, retail banking, customer experience, and digital transformation leaders, the report offers data-backed insights into AI adoption, workforce planning, scheduling maturity, technology investment, and the future of branch performance. To explore the full findings and benchmark your institution's approach, download the Branch Forward report.
