I recently came accross the below article and was fascinated by some of the industry trends and the emphasis put on the strategy towards the ”survival” of retail banking.
“When retail distribution specialists are looking at the positioning of branch real-estate there are a number of considerations, but the foremost consideration is where physically to put a branch to enable the most visits – essentially, how convenient it is to get to a branch. But these days, the branch simply isn’t the most convenient channel to use – Internet, Mobile and ATMs are far more ‘convenient’.
Key segments like Mass Affluent, and key product areas like mortgages, wealth management and loans are just too easy to position and service through direct channels. Branches better start figuring out how they’re going to make money over the next 5 years, and they better do it fast.” – From the Branch Networks: Where do we go from here? article in www.Banking4tomorrow.com See the full article here (Branch Network Industry Trends)
A key area of the equation is controlling the staffing cost element. Teller transaction volumes are down while salary & benefit costs are way up. The time is now for financial institutions to take measurable action. FMSI’s Teller Management System™ (TMS) finds the right balance for a teller line by scheduling tellers based on forecasted transaction volumes, leading to significant labor cost savings while balancing the desired service levels.
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