Branch Transformation

Branch Transformation & the Challenges Financial Institutions Face

Automated Transaction Delivery is one of the nations’ leading ATM service and technology providers for financial institutions. Our company takes pride in working on new solutions to help our customers achieve the branch transformation services they need to take their banking to the next level. Automated Transaction Delivery is continually working with our partners, including Antuar and GRG Banking, to revolutionize branch transformation. Below, we will discuss branch transformation and some of the common challenges branches face.

Branch Transformation

The objective of any Branch Transformation effort is to migrate the consumer to a more effective and efficient means of consumer service. Furthermore, research is an essential factor when it comes to Branch Transformation. It’s important to understand what financial institutions are doing and how to best integrate their services for more seamless user experiences. Automated Transaction Delivery has done studies on financial institutions and the direction they are going in to better understand how we can improve customer service and profitability. From the evidence we found, financial institutions have focused on compliance and improving their branch experience. However, as financial institutions show more emphasis on their branch experience, the issues of labor costs, productivity, and staffing have become a problem for a lot of financial institutions.

Financial Institutions Challenges

Labor Costs –Today, banking institutions’ labor costs have been rising. Bank of America has announced that none of its employees will make less than twenty dollars an hour. Economists have said that in the United States today, there are three jobs for every one person to fill them. This has increased labor costs, and the availability of quality employees is becoming a challenge.

Productivity – Teller productivity has continued to decline. Kronos, a human capital management and workforce management company has provided data related to a teller line that shows despite the increase in transactions per branch, teller labor costs have increased by 147.9%. The average transaction processed per teller hour worked, have decreased from 18.4% to 14.9%. Fortunately,Automated Transaction Delivery, who has been in the branch business for over 25 years, has noticed an increase in branch traffic. Over the past five years, the average rate of transactions per branch has increased by 10%.

Staffing –One of the biggest challenges for financial institutions is staffing labor costs. Most people within the financial industry understand how to calculate the burden rate. For example, if a teller is making $17 an hour, it will cost the branch twice the amount of the employee’s wage. Numerous factors get calculated into the burden rate, such as paying for the place they work, the equipment they are using, and their taxes and benefits. In addition, branches investigate what does the teller do, and what are their productive hours. When a financial institution factors in the breaks of their employees, that drives their production time down. Evidence has shown that most of a teller’s productive time is used on cash management, rather than on user experience.

Is Branch Transformation the Solution?

The primary goal of financial institutions is to have their tellers provide a friendly and seamless consumer service for every customer that walks into their branch. Therefore, when a branch is looking at the cost of their tellers who mainly count money all day, the labor costs can result in costing the branch over $17,000 a month. This financial burden can be extremely overwhelming for a branch. In a situation like this, branch transformation can take a lot of that burden off and make sure your branch is focusing on the primary goals of the user and consumer experience. When you need branch transformation solutions, contact Automated Transaction Delivery, and we can help transform your branch into a more innovative and modern-day solution.