Teller assist technology is key enabler of secure, personalised branch banking

Banking
25.02.2019 05:49 am

According to brand new research by RBR, banks remain committed to the branch as a central delivery channel and continue to invest in solutions to make physical outlets more efficient and customer- friendly. Teller Automation and Branch Transformation 2019, which covers 23 key global markets, reveals ongoing growth in the number of teller assist units (TAUs), with 181,000 terminals installed at the end of 2018. Recyclers (TCRs) now account for almost 80% of such units and have increased by 28% since 2014.

The research reveals that while most banks no longer see a strong business case for monofunctional dispenser units (TCDs), TCRs are widely valued for the increased efficiency and accuracy they deliver to branch operations. The time required for both transaction processing during the day and end-of-day balancing is notably reduced, while note counting and sorting errors are virtually eliminated, resulting in significant cost savings.

TCRs are also credited as an enabler of secure, personalised branch banking. Deployment allows banks to remove traditional glass teller positions without comprising security, meaning staff can interact with customers in a more relaxed, open-plan setting, devoting their attention to relationship building rather than cash counting. According to RBR, these multiple drivers will ensure growth in TCR deployment remains robust, with an additional 31,000 units set to be installed by 2023.

Growth in TCR deployment mainly outside of Europe

RBR’s research shows that until now TAU installations have been highly concentrated in western Europe, with the region accounting for 49% of all units yet just 20% of bank branches. Deployment is, however, projected to decline between 2019 and 2023 in most of the region’s markets as banks’ cash management strategies pivot further towards self-service technology. Demand for teller solutions will also be supressed as the region continues to see the sharpest decline in branch numbers globally.

By contrast, Asia-Pacific is poised for double-digit annual growth over the next five years. TCR deployment is still in its infancy in key markets such as China and Indonesia but local banks are keen to harness the technology to improve the branch experience. Meanwhile, the USA remains the largest market and continues to grow as TCRs and ATMs are used in tandem to optimise the cash cycle.

Beatriz Benito, who led RBR’s study, commented: “Despite increasing focus on self-service technology, TCRs continue to deliver a unique set of benefits to branches. Improvements to the efficiency and accuracy of cash handling lead to cost reductions, and provide increased opportunities for customer engagement, reinforcing the branch’s role as a key generator of new business”.