Replacing the teller line with technology can seem like a big jump for community institutions that don’t want to risk relationships by eliminating personal interactions at the branch.
Even with all their reported benefits, executives must determine: Will an ITM teller line work in our market?
According to the experience of financial institutions like Five Star Credit Union, which rolled out three “technology” branches in 2018, locations with ITM teller lines show tangible results, and not just from a cost savings perspective. The Dothan, Ala.-based credit union only needed its ITMs to handle about 850 transaction a month to justify their cost. At the time, the most efficient credit unions looked for about 2,500 transactions per month from a teller.
“We soon found that members engaged with the ITMs at all hours of the day, and our ITMs were doing way more than 850 transactions,” says Tyler Beck, the credit union’s chief operating officer. “They handled 4,500 per month, which is 2,000 more than we expected from a full-time employee. The efficiency gains came to fruition relatively quickly.”
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