TECHNOLOGY TAKEOVER: TRENDS IN THE BANKING WORLD
TRENDS IN THE BANKING WORLD
Written by Jeff Winter, SVP of Marketing
and Amanda Jasper, Communications Coordinator at NewGround
Technology is the supreme ruler of our world…
Technology is shaping the new world. Ask yourself this question: if you are going to build the “branch of the future,” what should you consider not to leave behind?
As an innovative design firm, we are agnostic to technology and are exposed to best practices by our clients internationally.
Since we are in the driver’s seat to help clients understand and embed the next generation of high-tech engagement, our goal is to improve the consumer experience while controlling the cost. We get it: your time is valuable. Time has become the new currency for the consumer and is now recognized as our most precious commodity.
Technology, along with the continued rise in consumer expectations, has paved the way for a new paradigm shift called the Experience Economy. The persona of those wanting this type of experience blends across generations, where many to all of us today are motivated by experiences.
So, what should we consider in banking design, knowing that Moore’s Law is sitting on our shoulders?
Welcome to the first installment in our series on what is shaping the banking world. In our first installment, we will discuss Teller Cash Recyclers and the Robot Greeter.
Teller Cash Recyclers
This may be contrary to popular belief, but our world’s cash circulation is growing.
According to ATM Marketplace, worldwide cash circulation is estimated at $5.2 trillion in U.S. dollars, a stack of money that would extend all the way to the moon and halfway back to the earth again. Cash in the U.S. is also estimated to grow at an annual rate of 1.7% through 2021.
Talk about an astronomical amount of money!
So how can financial institutions utilize Teller Cash Recyclers to help regulate all this money?
Branches have implemented numerous strategies to minimize dual-control processes, but Teller Cash Recyclers (TCRs) acting either as a vault or replacing teller line cash drawers can:
- Improve control and security of cash
- Lower total cash inventories
- Eliminate significant amounts of non-value work by tellers
- Increase number of transactions for each teller
- Eliminate many custodial dual-control activities for Branch Managers and Head Tellers
According to Glory’s latest report, there are more than 62,000 Teller Assist Units (TAUs), with 38,000 of those being TCRs. That’s more than 61%—TCRs already dominate the banking world!
There are 98,900 branches in the U.S., with 63 TAUs per every 100 branches. At the end of 2017, overall ATMs skyrocketed to a grand total of 437,500. Here’s how Glory’s report breaks it down:
A steady increase in TCRs is anticipated down the road. By 2023, TCRs will dominate over 83% of the overall TAUs in the U.S.
What does all this mean? ROI booms!
TCRs create reduced closed time for every teller’s work station. On average, TCRs save tellers 20 minutes per day, which equals about 86.7 hours per year. The paradigm in the use of TCRs is trust in technology and change management among your staff. This reduction in counting and sorting money only further reduces the duration each station is closed. Less wait time, less time wasted, improved experience focused on building a relationship—who wouldn’t want that?
Robots are taking over the world!
Okay, they aren’t actually taking over, but their presence is rapidly growing.
Retail banking executives are getting used to the whole “life-like robot” concept, introducing an actual talking robot that mimics and understands human gestures and language. Seems pretty futuristic, right?
The future is now.
Meet Pepper, a robot first introduced by HSBC Bank USA in June 2018. Manufactured by SoftBank Robotics Group, Pepper has been sold to over 12,000 retailers, hospitals, and airports worldwide.
Standing at four feet tall, Pepper engages people through conversations and a touch screen, informing and entertaining people along the way.
Think Pepper is just a gimmick? Think again.
Retail banks that use robots like Pepper have seen a dramatic increase in added value. Consumers who see Pepper through the window are likely to come in, interact, and open an account—sometimes multiple accounts for millions of dollars!
Pepper is a sophisticated digital device that uses language processing and recognizes basic human emotions. With a touch screen that can provide information about anything from how to deposit a check to current promotions, Pepper can assist consumers with about 300 various actions. The robot can also act as a concierge to direct consumers to the appropriate person. Pepper also helps reduce wait times and solves issues promptly before consumers ever need to talk to another employee.
Pretty cool, huh?
Robots like Pepper can engage consumers, empower employees, optimize operations, and facilitate learning. Designed to create unique experiences and develop relationships, Pepper can bring the digital world and the real world together.
Sparking curiosity and leaving a lasting impression, consumers can interact with technology like never before.
Watch for our second installment in our technology series to learn about more ways you can stay up-to-date in our modern banking world!