Too Many Tellers Or Too Few Transactions? The Answer Is “Yes.”

The pandemic did a number on branch transactions, and we have the numbers to prove it.  

Data from Curinos’ Distribution Analyzer show a 37% decline in average transactions per branch between 2019 and 2023. Over the same period, the number of branches with fewer than 2,000 transactions jumped from 7% to 24%. In these branches, the average teller FTE produced only 847 transactions per month – around 40 per day (see chart). 

At all branch sizes, productivity was off significantly, and the shrinkage was magnified because the number of branches declined by ~10% on average, forcing more of these fewer transactions into fewer branches.  

The upshot: extremely unproductive branches and very little opportunity for additional workforce savings, in large measure because staffing levels are already at their minimum.    

The needed response: increased creativity around the branch operating model. FIs need to thoroughly revisit branch processes, workforce roles, hours/days of operation, branch formats, enabling technology and staffing.  

Sure, it’s a heavy lift, but the future of branch delivery depends on it.