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The Decline of the Population to Branch Ratio

June 21, 2011

The ratio of population to branches has declined from 9,340 in 1970 to 3,683 in 2008.  This staggering metric is a result from a  nearly 300% growth in the number of branches while the population growth was nearly half of that.  Perhaps even more alarming is the decline in the number of transactions in the branch environment (see figure below), which has been caused by many factors, including technology innovations — like online banking and mobile banking.

These two metrics coupled together is a cause for alarm for banks and credit unions that have not changed their staffing levels in their branch environment.  What is your average cost per transaction and what has the trend been over the last 10 years?  FMSI has determined that this is costing institutions an average of $30,000 per branch, per year.  With the Durbin Amendment right around the corner, FIs can no longer afford to ignore this problem.  Go to fmsi.com to learn more about a proven outsourced workforce optimization solution.

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