US branch transaction volumes have dropped by 45% over the last 10 years, a study by Financial Management Solutions Inc (FMSI) has found.
The study, which is based on a compilation of teller activity volumes, indicates that branch transaction volumes are continuing to decline year-over-year.
Michael Scott, president/CEO of FMSI said of the data: "We are in a unique position in that we have access to more than 17 million monthly transactions from many different financial institutions. 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 can be attributed to customers’ use of new technologies over in branch transactions.
Celent, financial analysts, also released a recent report purporting a 30-40% reduction in the number of operating branches in the US over the next decade.