Financial institutions are overestimating their hybrid banking maturity, according to a new report from Coconut Software, developed in partnership with Future Branches Insights. The report, titled “Branch Forward: How Financial Institutions Are Investing in Technology, Scheduling, and the Future of CX,” reveals that while 76% of senior leaders claim their institutions deliver an integrated hybrid banking experience, only 3% describe their maturity as truly “intelligent” or “optimized.” This disconnect extends to workforce management, with 61% of respondents saying they frequently struggle to forecast staffing requirements to meet customer demand.
The findings, based on a survey of 100 senior financial institution leaders across the U.S. and Canada, underscore a critical operational gap that threatens 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.”
To bridge this gap, many institutions are turning to artificial intelligence. The report shows that 56% of respondents are already implementing AI in specific departments or workflows, while 22% are scaling AI institution-wide. Additionally, more than half have formal investment plans for AI-driven scheduling (58%) and intelligent advisor matching (58%) within the next 18 months, with 53% planning investments in demand forecasting. This focus on AI is part of a broader shift in how scheduling is perceived—from a back-office function to a strategic driver of revenue and branch performance.
Indeed, 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. This elevated view of scheduling is reflected in technology investment strategies: 55% favor a best-of-breed, integration-first vendor approach rather than consolidation, and 46% cite total cost of ownership as the most important factor in build-vs-buy decisions.
The report also highlights the importance of strategic alignment and customer impact when funding new technology. Nearly two-thirds (65%) of respondents say strategic alignment is one of the two most important factors, while 42% cite customer impact metrics such as NPS and CSAT. These insights come at a time when financial institutions are redefining branch strategies to meet evolving customer expectations.
“The institutions that solve that operational layer will be best positioned to turn hybrid banking into a true growth engine,” Regnier added. 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. By benchmarking against peers, institutions can identify areas for improvement and prioritize investments that drive tangible outcomes.
For more details, the full report is available for download at coconutsoftware.com.
