News Brief Series Part 2: What the FDIC Brick-and-Mortar Banking Report Means for Your Technology Investments

Physical Branches Have Staying Power, but Technology Investment Priorities Must Shift

MT. PROSPECT, Ill.--()--Research highlighted in a new report published by the Federal Deposit Insurance Corporation (FDIC) reveals that while brick-and-mortar bank branches remain prevalent in today’s financial services industry, the way customers interact with their financial institutions (FIs) is changing.

Cummins Allison, the leading innovator and provider of check, currency and coin handling solutions, as well as ATMs, outlines how FIs can take specific, technology-related actions to address the branch transformation trends highlighted in the report.

1.) Automate and consolidate check and currency handling processes. The average number of teller transactions per branch declined by 45 percent between 1992 and 2013, from 11,700 transactions per month to 6,400.1 Many FIs have already adjusted their staffing levels to accommodate this decline in transactions – reducing staff and consolidating job responsibilities. By deploying high-speed processing solutions that can balance cash and checks, prepare deposits, eliminate day-2 errors and detect counterfeit bills on a single platform device, limited staff can be more efficient when handling teller-line transactions (including large volume commercial cash deposits), and their time can be quickly redirected to more high-value tasks.

2.) Promote self-service channels for routine transactions. According to the FDIC study, the frequency of customers visiting branches to perform simple transactions has declined. FIs can take advantage of this trend by migrating routine transactions (deposits, withdrawals, check cashing and coin deposit) from the costly teller line to self-service channels, such as ATMs and self-service coin counters. For example, investment in full-function ATMs with deposit automation capabilities provides customers with 24/7 access to their accounts and the ability to make small to medium sized cash and check deposits away from the teller line. This not only reduces the cost-per-transaction at the branch level, but also meets customers’ self-service expectations and helps FIs target new customers who are increasingly less dependent on branches for transactions and routine interactions.

3.) Create a more efficient, more high-value branch experience. As the report noted, customers continue to value the personal service and relationship banking that can only be delivered via in-person interaction. With strategic investments in currency processing and self-service solutions, staff can be redeployed from transaction-based roles to customer service and selling. This not only creates a personalized environment for customers, but increases revenue opportunities within the branch.

For more information about how Cummins Allison’s currency, check and coin handling solutions enable more efficient processes within the branch, please visit www.cumminsallison.com.

Sources:

1 Federal Deposit Insurance Corp., Brick-and-Mortar Banking Remains Prevalent in an Increasingly Virtual World, February, 2015.

About Cummins Allison

Cummins Allison is the leading innovator and provider of check, currency and coin handling solutions, as well as full-function ATMs. Our world-class sales and service network includes hundreds of local representatives in more than 50 offices in North America, 6 wholly-owned subsidiaries and is represented in more than 70 countries around the world. For more information about our award-winning solutions, visit www.cumminsallison.com.

Contacts

Cummins Allison Corp.
Carol Moore – Vice President Marketing
847-759-6403
moorec@cumminsallison.com
Outlook Marketing Services, Inc.
Andrea Davis
312-957-8905
andrea@outlookmarketingsrv.com

Release Summary

Cummins Allison outlines technology-related actions banks can take to address the branch transformation trends highlighted in recent FDIC report.

Contacts

Cummins Allison Corp.
Carol Moore – Vice President Marketing
847-759-6403
moorec@cumminsallison.com
Outlook Marketing Services, Inc.
Andrea Davis
312-957-8905
andrea@outlookmarketingsrv.com