FMSI CEO Publishes Transforming the Branch Article in BAI Banking Strategies
By W. Michael Scott, President/CEO, FMSI
July 17, 2015
BAI Banking Strategies Article: Transforming the Branch for Sales and Lower Cost
"In the face of a steady downward trend in customer transactions, banks should transform their branches into sales-centric outlets and streamline staffing through more efficient scheduling.
The results of our 2015 FMSI Teller Line Study are in and they support widespread perceptions about declining branch transactions and staff productivity and rising labor costs.
Consider that the volume of transactions at community bank and credit union branches since 1992 has declined 45.3%, while the cost of employee salaries and benefits has soared 90.1% over the same period. Meanwhile, the ratio of labor cost per-transaction has risen 133.3% over the last 24 years, while the average number of transactions processed per-teller hour has declined 18.5%. That translates into labor costs for basic teller transactions
increasing from an average 48 cents in 1992 to $1.12 today. Additionally, over the past five years, average volume per-bank branch
has dropped about 1,000 transactions per month to 7,200."
Read the full article here