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Study: As self-service banking rises, teller displacement begins

A new study finds that consumers increasingly prefer to make self-service deposits as opposed to paying a visit to the teller.

March 24, 2015

As technologies become easier to use and offer greater functionality, self-service increases in its appeal to consumers, according to a press release from Mercator Advisory Group.

"Self-Service, ATM, and Other Channel Banking: Teller Displacement Begins," highlights consumers' rising use of and interest in a wider variety of self-service and ATM channels — especially consumers who are most comfortable using smartphones, tablets and mobile banking.

Since 2012, more consumers report that they might use an ATM instead of a teller (36 percent in 2014 compared with 24 percent in 2012), while fewer consumers would still likely use a teller (30 percent in 2014, 41 percent in 2012).

The survey also found that remote deposit capture is now the preferred method for $50 check deposit among young adults and smartphone and tablet owners. For higher value checks ($1,000), tellers remain the preferred method, but this preference is declining, Mercator found.

What is more, nearly 1 in 10 consumers reported not having a check to deposit within the three months preceding the survey, as nearly 1 in 3 consumers report their check use is declining. 

"This year's Banking and Channels survey finds that teller displacement is clearly underway in the U.S.," said Karen Augustine, manager of primary data services, including the CustomerMonitor Survey Series at Mercator Advisory Group, and author of the report. 

The study examines demographic shifts and changing preferences in the use of self-service channels compared with the traditional branch. Additionally, it identifies trends in consumer methods of communicating with their bank and frequency of contact, methods, and preferences for:

• getting cash and depositing checks;
• changes in use of cash and checks;
• use of ATMs by type and location;
• willingness to pay surcharges for convenience;
• importance of ATM characteristics in new bank selection; and
• interest in using mobile cash access, self-service kiosks, and videoconferencing for bank transactions and discussions with banking specialists.

The survey was conducted in November 2014 from an expanded sample of 3,000 U.S. adults.

One of 27 exhibits in the 64-page report: