Has Automation Changed the Demand for Bank Tellers?

In the age of e-commerce, there are few basic banking services a person can't do on their own. Need to pay a bill? Log in to your online account. Need to deposit a check? Go to an ATM. Need to send money to a friend? There are online transfers or e-mail transfers.

These basic banking services are still provided by bank tellers, or customer service representatives (CSRs). But they have fewer and fewer customers to serve face-to-face. The job is changing to adapt to the new electronic world of banking.

Automated Tellers to Replace Personal Service?

Darlene Kunz has been a teller at a credit union for eight years. Her career in banking has been a lot longer. She says the volume of members she sees down. People are choosing to use Internet banking, telephone banking, direct deposit services and ATMs for the services tellers have traditionally provided. "Tellers are becoming an obsolete thing," says Kunz.

Younger clientele especially favor modern alternatives, says Shruti Jumani. She works on the banking team for a securities company. She came to the job after gaining experience as a customer service representative at a bank. However, Jumani says that the older generation still prefers personal interaction. They are either not comfortable using technology or prefer the human contact.

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Regardless of age, automated services annoy some customers. For example, many people get frustrated when they have to listen to long, automated menus for telephone banking. Kunz says that banks have suffered for their lack of personal service. But financial institutions continue to move towards automated service. They supply the technology and the customers serve themselves.

But Kunz believes that banks and credit unions will always want to provide some services in person. "People love it," she says. Some people are still resisting the automated banking trend and prefer to do their banking in person. And many businesses use banking services throughout the day.

"As long as there's cash to count from business, there's always going to be CSRs -- even though, with online banking, the need to actually go into a bank has decreased. More and more branches cut down on their staff based on the bank's flow of business," says John Callahan. He works for a bank in Chicago.

Not All Banks Follow the Trend

Many financial institutions continue to shift they way they provide service to customers. Some banks favor this shift. They save money when customers serve themselves. But other banks are doing just the opposite.

For example, TD Bank (previously Commerce Bank) prides itself on being "America's Most Convenient Bank." Its philosophy is to "wow" its customers. It considers banking a retail business. That means the customer is king.

This bank provides online, ATM, telephone and other convenient services to serve customers. But it also offers seven-day branch banking with extended hours. And it encourages customers to come into the branch to do their everyday banking.

The U.S. Bureau of Labor Statistics backs up this trend. It says many banks are opening new branches in lots of different locations. Banking hours are getting longer. There are more banks open on weekends. It says these trends will increase opportunities for banking CSRs, especially those who want part-time work.

Banking is a huge industry. It includes chartered banks, trust companies and credit unions. It covers all financial services to individuals and many businesses.

New Responsibilities for CSRs

"In my personal opinion, I do not believe CSRs will ever become completely obsolete. As there are fewer CSRs employed, due to a shift towards technology, one might expect the role of CSRs to phase out," says Jumani.

For example, as a CSR, Callahan was also trained to open and close accounts. "A lot of banks are going to that now, where the CSR will have the ability to open up accounts as well," he says.

When Jumani worked as a CSR she was regularly trained on new products. She explains that the more products and services a client subscribes to, the more money the bank can make. She says CSRs have weekly, monthly and annual referral goals. Very often, meeting these goals is a deciding factor in year-end bonus offers as well as salary reviews.

"CSRs are the face of any financial institution, and are the first point of contact for the majority of the clientele," she says. Clients often ask CSRs questions about the services available from the bank. CSRs with a strong knowledge of financial products and services can answer questions efficiently and accurately.

"Providing accurate information, or at least referring to the correct personnel, is a major service component of a CSR's job description," says Jumani.

Callahan agrees that the CSR often initiates the first step of the banking sales process. "It is very important for the CSRs to know their banking products because then they'll be able to identify certain client needs and then be able to suggest that the client sit down and meet with a banker," he explains.

Still a Great Entry-Level Opportunity

In the U.S., tellers held about 608,000 jobs in 2006, according to the Bureau of Labor Statistics. The number of young people in these jobs is higher than average. Many young people pass through these jobs as they begin their career in finance.

There are no official educational requirements for a CSR job. A young person could start the job after high school. It's a great job for students who want to get their feet wet in finances or learn more about the banking industry.

There are plenty of opportunities to advance within a financial institution. The CSR position is an entry-level job in the banking field. Callahan gained experience as a teller and CSR. From there, he was recently promoted to a consumer banker position.

Jumani used the experience she gained as a bank CSR to get a job with a securities company. She works on the banking team. They handle all the money going in and out of the company. The responsibilities are very similar to those she performed as a CSR.

"If customer service, personal interaction, problem resolution and a dynamic learning environment sound attractive, then a CSRs role is right for you," says Jumani.

Net Sites

TD Bank WOW Zone
Banking games and resources for kids, teens, parents and educators
http://www.tdbank.com/wowzone/wowzone.asp

Customer Service: Commerce Bank
Read this article about how customer service is more important than ever
http://www.fastcompany.com/magazine/58/service.html

KidsBank.com
Learn about banking, spending and saving at this site just for kids
http://www.kidsbank.com/index_3.asp