Financial institutions in Canada and the United States are facing a critical disconnect between their digital ambitions and operational execution, according to a new report from Coconut Software. The study, titled Branch Forward: How Financial Institutions Are Investing in Technology, Scheduling, and the Future of CX, was developed in partnership with Future Branches Insights and surveyed 100 senior leaders at banks and credit unions. The findings highlight a sector that is rapidly adopting digital channels but struggling to translate that adoption into mature, data-driven operations.
The report identifies a stark maturity gap: 76% of institutions say they deliver an integrated hybrid banking experience, yet only 3% describe their maturity as truly "intelligent" or "optimized." This gap is most evident in staffing, where 61% of respondents frequently struggle to forecast staffing requirements to meet customer demand. That operational shortfall has direct implications for customer experience and branch performance, especially as institutions invest heavily in AI and scheduling infrastructure to bridge the divide.
AI adoption is accelerating. More than half of respondents (56%) are already implementing AI in specific departments or workflows, while 22% are scaling AI institution-wide. Over the next 18 months, 58% have formal investment plans for AI-driven scheduling and intelligent advisor matching, and 53% for demand forecasting. These investments signal a strategic shift: scheduling is no longer just an operational function but a revenue driver. Fifty-four percent of leaders said appointment conversion value is the scheduling metric they most want to improve, and 38% ranked conversion optimization as their top business priority over the next year.
"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 sheds light on technology strategy. Fifty-five percent of institutions favor a best-of-breed, integration-first vendor approach over consolidation, and 65% cite strategic alignment as a top funding factor, followed by customer impact metrics like NPS and CSAT (42%). When deciding between building and buying, 46% rank total cost of ownership as most important.
For Halifax and Atlantic Canada, these findings resonate as local credit unions and banks navigate similar pressures. The region's financial institutions, like their national counterparts, must balance branch networks with digital services while managing staffing in a tight labor market. The emphasis on AI-driven scheduling and advisor matching could help local players improve efficiency and customer satisfaction, but the low maturity score suggests that many are still in early stages. The report, available through Coconut Software and Future Branches Insights, provides a benchmark for institutions aiming to turn hybrid banking into a growth engine rather than a cost center.
