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ATM, Debit & Prepaid Forum session touts benefits of branch teller recyclers

Representatives from NCR, Wincor and Talaris put the ROI at 18 months.

November 3, 2011 by Kim Williams — Reporter, NetWorld Alliance

An ATM, Debit & Prepaid Forum 2011 session, titled "Teller Automation: Bringing ATM Efficiency Inside the Branch," provided solution overviews of major industry players, NCR, Talaris and Wincor Nixdorf. The event took place this week in Las Vegas from Nov. 1-4 at the Bellagio Hotel.

Malon Updike, director of deployment for the Americas, NCR; Saul Caprio, director of business development, Wincor Nixdorf U.S.A.; and Chris Reagan, president, Talaris North America, discussed the costs and implementation challenges associated with re-engineering cash handling in bank branches.

"One of the things teller automation is really helpful for is being able to increase the consumer experience at the branch by adding accuracy in cash counting. It's a really stressful job trying to be accurate and keep track of your cash counting with the consumer coming in and going out," Updike said, opening the presentation.

Updike highlighted the design benefits of teller recyclers, particularly those that NCR offers, such as a compact footprint, high availability, with respect to speed, and security. Updike made the case for improving the customer experience, saying that NCR's independent research finds that teller recyclers improve efficiency and productivity within the branch by 20 to 50 percent.

Reagan cited statistics in which 68 percent of respondents said that the reason they left their bank was because of how they felt they were treated within the branch. Of that number, 47 percent specified by saying that the reason they switched banks was due to perceived teller incompetence and unfriendliness.

"The teller is one of the most critical roles in the bank, but it is also one of the lowest paid, high stress positions. You have people in this position being asked to do more and more every day but being given less tools with which to do it," Reagan said.

With teller automation and recyclers exhibiting more popularity outside of the U.S., an audience member asked what type of branch configuration in the U.S. was suitable for implementing teller recyclers.

"It can work in all branch environments. What you need to do is look at the cash ecosystem within the branch to make sure you have the appropriate devices to enable the best usage," Updike said.

Caprio cited a small grocery store branch as a particular format that would benefit from a teller cash recycler because it would lift the requirement for having an assigned number of people constantly working onsite.

"You can run with two. You could run with one. The money is locked up in the safe. Between the software and the hardware and the teller, you have the dual custodial relationship. Bank branches that have security issues can change the configuration of the branch to make it more consumer friendly," Caprio said. "There are very few locations that can't find some benefit in this."

The question of cost to implement such a system was posed to the panel. Reagan said to expect somewhere in the $30,000-$35,000 range, which doesn't include the costs associated with training and other extraneous expenditures. He said that the typical ROI is fewer than 18 months. Caprio and Updike agreed with the estimates on behalf of NCR and Wincor Nixdorf.

"If you want to provide a better customer experience at the branch, you have to start by supplying employees with the tools to make that happen," Reagan said.

For more information on this topic, visit our bank automation research center.