12 February 2016

US branch transaction volumes see eye-popping decline

24 May 2013  |  7281 views  |  0 Bank Branch Desk with Customer 2

Branch transaction volumes in the US have dropped by 45% over the past decade, according to data released by teller management outfit Financial Management Solutions Inc (FMSI).

The FMSI Teller Line Study is based on a compilation of teller activity volumes pulled monthly from HR systems and community bank and credit union core systems.

Using the month of March as an annual comparative benchmark, this year's study indicates that branch transaction volumes are continuing a year-over-year decline.

"We are in a unique position in that we have access to more than 17 million monthly transactions from many different financial institutions," says W. Michael Scott, president/CEO of FMSI. "The detailed study reveals a declining branch transaction trend, of which senior management at financial institutions should take note. With transactions dropping and staffing levels remaining the same, the inevitable outcome is costly overstaffing in the branch environment."

The downward trend in branch activity levels is accelerating as more consumers turn to digital channels to conduct their daily banking transactions, fuelling the debate over the value of branch networks in a 21st century banking model.

Analyst house Celent says that the banking industry will soon respond to the obvious migration of customers to new digital alternatives and is forecasting a dramatic 30-40% reduction in the number of operating branches in the US over the next decade.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

17 May, 2013
16 April, 2013
12 April, 2013
10 April, 2013
04 April, 2013
28 February, 2013
28 November, 2012
09 October, 2012
08 October, 2012
21 September, 2012
01 August, 2012

Top topics

Most viewed Most shared
UK sets out open banking API framework
14050 views comments | 97 tweets | 87 linkedin
European mobile banking service Pocopay go...
8039 views comments | 25 tweets | 14 linkedin
Deutsche Bank calls for co-operation with...
7440 views comments | 27 tweets | 30 linkedin
How to accelerate your fintech startup
7196 views comments | 33 tweets | 9 linkedin
Wearable payments startup Fit Pay secures...
6546 views comments | 26 tweets | 9 linkedin

Featured job

up to £95K base, £190K OTE, benefits
London, UK

Find your next job