The Role of the Bank Teller: What Really Needs to Change?

TowerGroup Take-Aways

• Expansion of online and contact banking centers will be the catalyst for radical change in retail banks' branch services through about 2014.
• The mix of staff at banks' branches will change to a combination of tellers and platform bankers, whose responsibilities will be redefined.
• Banks have a mandate to retrain tellers to focus more on sales and service while management continues to address teller turnover rates that approach 50%.
• Technologies (such as teller image capture devices, card readers, cash recyclers and dispensers, and integrated teller application software) are and will continue to be key elements that drive tellers' productivity.
• Retail banks' investments in programs for recruiting, training, and compensating tellers will have to increase to keep pace with changes in the role of the teller.

Report Coverage

TowerGroup estimates that, in the retail banking industry, the number of teller transactions per year will decline from 10.1 billion in 2006 to 9.8 billion by 2010. As the percentage falls from 73% of branch transactions to less than 67% and the number of sales and service transactions increases, financial services institutions (FSIs) need to understand both the current role of the teller and the ways it needs to change. This TowerGroup Research Note examines the available technology as well as best practices in recruiting, training, and compensating tellers in bank branches.

Report Coverage

Background

Bank Tellers' Historical and Current Roles

Bank Tellers' Future Roles

Summary