This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Is There a Person in Your ATM?

"It's actually worked out very well for us, because the in-branch management isn't focused on what's going on behind the teller line," Mecca said. "We were really looking at streamlining and optimizing the teller function."

CFCU reports positive results from the digital shift, including increased sales across its branches as well as a higher rate of turnaround for its tellers. Mecca said that the credit union can also operate with less staff now; since it no longer needs to dedicate personnel to rarely visited locations, each teller's time can be used more efficiently.

All of this comes as no surprise to Greg Kelly, a principal with Deloitte consulting who has specialized in the banking industry for the last 24 years.

"I think that this trend will continue," he said. "A number of banks [already] use video in their branches, and a number of them have moved from click to chat to click to video on your PC at home... Depending on how savvy the user is, you can do almost any transaction and you don't need to walk into a branch."

As part of Deloitte's consulting team Kelly has written on this subject before, including a 2012 article in the Wall Street Journal titled "Is it Time for Real-Time Banking?" The issue for the banks, he says, comes down to cost. (http://deloitte.wsj.com/cio/2012/04/04/is-it-time-for-real-time-banking/)

"When you do a mobile transaction, it's about 10 times less than the cost of an ATM transaction," he said. "When you do an ATM transaction it's about 50 times cheaper than a branch transaction. Banks are always trying to move the customer to the lower cost channel."

The switch to videoconferencing is another step in that direction, allowing banks to achieve through low-cost ATMs functions ordinarily reserved to a branch. Although Burke declined to comment on the costs and savings of Bank of America's Teller Assist program, the external numbers speak for themselves. A 2010 report by Deloitte indicated that banks could reduce costs by as much as 80% per transaction by moving customers from a branch to a traditional ATM, and CFCU's experience with video-enabled machines bears this out.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs