Solutions for Success

Solutions for Success: Measuring the Impact of Teller Automation

The Solutions for Success features timely issues and best practices from CBA Associate Members. CBA recently met with Phil Winn, President of ACG, to ask a couple of questions regarding Teller Automation. ACG is a Master Distributor for ATEC Teller Cash Recyclers. ACG warehouses, distributes, and supports all US bound products.

Many CBA member banks have adopted Teller Cash Recycling technology. Some are considering the deployment. What are the benefits of TCR’s?

Community Banks can transform “heads down, cash counters” into Sales Consultants--INCREASE Revenue Community Banks know there is untapped potential in their existing branch network. Selling more product offerings is very possible. In order to capitalize on the potential, FI’s should evaluate the age-old practices of their tellers. Teller Automation enables tellers who currently spend a significant part of their day counting and reconciling cash into consultative sellers of the bank offerings. Developing the “sales culture” of tellers is not always easy and will not happen without process, measures, and focus, but it does happen with the effort and tools to enable their success.

Customers will notice a difference! –IMPROVE Customer (and teller) Satisfaction Customers are accustomed to entering a branch, sometimes waiting in line, and then working with a transactional teller. TCRs allows the branch staff to perform the same number of transactions in greatly reduced time. Community Banks who have removed the “cash burden” from the tellers allow them to focus on the customer instead of the cash. ‘Repurposing’ their staff to become more product and customer centric.

Improve Security—DECREASE Risk One of the most reoccurring reasons to implement teller automation is security. The ability to virtually eliminate cash in the teller drawer and secure all cash in a safe, is a large benefit.

Cost Savings—DECREASE Costs There are many potential cost savings. The cost saving may be realized in several ways including reduced FTE head count and cash-in-transit costs, through improved cash inventory management. Many FI’s have found that removing the pressures associated with handling and reconciling cash reduces turnover. This in turn reduces hiring and training costs. Use of Technology—IMPROVE your Brand! Customers notice the technology utilized by Community Banks. The use of TCR’s will improve speed of transactions. All improving your “Brand” in your customers and future customers view. Allowing your staff to focus on the customer and not cash…

Is there a Return on Investment by implementing Teller Automation?

There absolutely can be a very powerful ROI. It is universally agreed that the use of TCRs will allow FI’s to do the same number of transactions in significantly less time/staff resources. The time needed for cash drawer set up, balancing, customer transactions, vault buys/sells, night deposit bag processing, and more are dramatically reduced. What is done with this time savings is of course up to the FI. You may want to request an analysis to estimate how much time you will save. The analysis will use YOUR inputs by branch considering transaction volumes and YOUR estimates of time for each type of transaction, number of tellers, etc. The analysis will estimate total time savings, which can easily be converted into cost savings estimates. Often there is a powerful ROI just on the time savings. Add reduced cash-in-transit costs, reduced overtime, reduced frequency of dual control needs, reduced vault costs (typically on remodel or new branch builds) and potentially reduced insurance costs. These cost savings while enabling your tellers to sell/promote more products makes it easy to understand why teller automation is one of the fastest growing technologies being deployed by FI’s across the country.

If a Georgia Community Bank is uncertain if Teller Automation is right for them, what do you suggest?

To understand if there is benefit at any branch, the FI should have their cash handling times and processes analyzed at that branch. I would suggest requesting a branch analysis from a qualified Teller Automation supplier to really understand the time being spent on cash handling, potential benefits of utilizing automation and ultimately making an informed decision.

ACG is a worldwide company based out of Atlanta. ACG has been serving Georgia Community Banks since 1986 and an Endorsed CBA member (now silver provider) for more than 15 years. ACG not only provides TCRs but also remanufactured ATMs, branch equipment and field service.

Phil Winn

President ACG

Tracy Dobson

Account Manager ACG