ALPHARETTA, Ga. The days of ever-growing branch volume are over, and as a result, credit unions and banks alike need to pay more attention to staffing levels, according to the 2013 FMSI Teller Line Study.
FMSI said its analysis has found a decline in the ratio of population to branches and concluded that the market was “overbranched.” The enactment of the Dodd-Frank Act and the pending implementation of Obamacare also have meant new branch-related costs, according to FMSI.
“Look closely at your teller line workforce optimization,” the firm said. “With the potential of $30,000 per year per branch in excess labor costs, you may be leaving a very big rock unturned.”
The advent of mobile banking also is likely to be a long-term driver of declining branch traffic as the “video game generation” grows up, according to FMSI, which pointed to ongoing developments in remote teller systems also contributing to fewer feet in branches.
The FMSI study also found:
* A 45.3% decline in branch volume since 1992.
* An 84.2% increase in salary and benefits since 1992.
* A 123.6% increase in labor cost per teller transaction since 1992.
* Productivity has decreased 18.9% since 1992
