News

Study: 'Teller Automation and Branch Transformation 2015'

A new report from RBR examines the different approaches financial institutions are taking to the task of branch transformation.

March 19, 2015

A new report from RBR, "Teller Automation and Branch Transformation 2015," shows that banks across the globe are using a combination of different, complementary solutions in their branch transformation projects.

Consolidation

At the end of 2014 there were 600,000 branches in the 25 countries covered by report. While branch numbers continue to increase globally, the rate of growth is slowing. In more mature markets such as the United States and western Europe, branch networks are contracting, as banks close surplus outlets.

Downsizing

To cut costs and accommodate changing customer behavior, some banks are downsizing the branch. Large banks in the U.S. and Australia have taken this route, opening smaller branches with fewer tellers.

A number of banks in Italy, including Gruppo Intesa Sanpaolo and BNL, have adopted a “hub and spoke” strategy, where one large branch offering a full range of banking services, is surrounded by a number of smaller outlets providing more limited services.

Recent years have seen some banks move towards cashless (i.e., tellerless) or even entirely unmanned branches. Pure self-service branches can be found in France, the Netherlands and Russia, among other markets.

Teller assist units

Many FIs view teller assist units as a vital enabler of branch transformation. The number of TAUs worldwide continues to grow, reaching almost 180,000 at the end of 2014.

The U.S. is the largest market overall, with more than one-quarter of the global installed base, followed by Spain, with 20 percent. In the U.S., banks are driven to deploy TAUs by the increased efficiencies they provide, while in Spain, TAUs are one method of complying with strict security legislation regarding cash in the branch.

Assisted self-service

Banks are combining new types of technology with existing solutions — for example, assisted self-service terminals that allow customers to perform transactions autonomously, receiving assistance from a staff member only as needed, either in person or via video link.

The two largest rollouts of such terminals are by JPMorgan Chase and Bank of America, which deploy over 2,000 assisted self-service machines between them.

Other new types of technology banks are introducing include queue-management solutions, and interactive and digital signage.