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Financial services institutions will soon be forced to redefine the ‘classic’ role of the bank teller, thanks to the decreasing number of teller transactions per year, advances in bank teller automation technology, & the expansion of online & contact center channels. New research from TowerGroup finds that to meet customer demand while still achieving overall cost reductions, the teller role must evolve: Retail banks must add skills in sales & service to tellers’ current transaction processing responsibilities. TowerGroup estimates that the number of teller transactions per year in the US will decline from 10.1b in 2006 to 9.8b by 2010 while the number of sales & service transactions will increase. Although customer demand for teller transaction processing services remains high, many retail banks have implemented tools to streamline transaction processing, enabling tellers to step out from ‘behind the glass’ & become more active in sales & services. ‘In changing the role of the teller in branch banking, retail banks should ultimately look to create a ‘universal teller,’ one who will be best positioned to handle all customer requests for transactions, service, & sales,’ said Tom Brogan. ‘To ensure a successful evolution of the teller role, financial institutions must overhaul their thinking about this job to bring it up the ‘food chain.’ They must upgrade teller compensation programs, enhance the teller automation desktop, adapt recruiting practices, & redesign training programs.’ TowerGroup predicts that the number of service transactions performed by all branch staff will decline as customers take advantage of other delivery channels to fulfill their service needs. Sales transactions will increase substantially, replacing teller volume. Despite banks’ efforts to improve efficiency & simplify the job of the teller, an overriding concern remains the historically high turnover rate for tellers, particularly in urban areas. TowerGroup estimates that the turnover rate for full-time tellers is 33%, while the turnover rate for part-time tellers is much higher at 53%. Technologies such as teller image capture devices, card readers, cash recyclers & dispensers, & integrated teller application software will continue to be key elements that drive tellers’ productivity.