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For Senior Management, From Senior Management – September 2011 Edition

September 6, 2011

W. Michael Scott – President/CEO of FMSI

A recent and interesting American Banker article, see link, discusses Google and Apple compared to banking and specifically Bank of America and HSBC. The emphasis and comparisons of the article is that banking has too much overhead expense, especially in branches and staff, compared to other industries—and a paradigm shift is in order to employ more technology and lower the financial services industry labor costs in delivering their products and services. Chris Skinner at Financer Blog also wrote about this comparison in his blog post, see link, and reported that Apple generates $2,000,000 per year in revenue per employee, while HSBC makes just $181,000 per year in revenue per employee.

One FMSI client, Coastal Federal Credit Union in Raleigh, NC, has taken major steps to redesign its branch delivery system of teller transactions. They utilize NCR and uGenius Personal Teller Machines to centralize their teller staff in one location and conduct their member teller transactions with an interactive video teller machine. They installed the video teller machines in their sixteen branches and reduced their teller staff by approximately 55%. They have expanded their teller operation hours of operation to seven days a week, from 7 AM to 7 PM. Account holder acceptance has been exceptional and all sessions have a personal teller interaction with their account holders.

What have you done to improve your revenue per employee metric?

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