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Big Banks Are Still Cutting Expenses in 2012

January 18, 2012

“To make up for the lost profits, big banks are cutting expenses. Bank of America has said it will jettison 30,000 jobs in the next few years. Wells Fargo has said it needs to cut quarterly expenses by $1.5 billion by the end of this year, including job cuts. Morgan Stanley and Goldman Sachs, which generate a bigger share of profits from investment banking, have announced big cuts in bonuses this year.”

Two recent white papers by FMSI, The 2011 Teller Line Study and The Workforce Utilization Study, reveal the steps required for financial institutions to properly manage their workforce reductions—taking into account customer service.

Significant and sudden layoffs are in most cases a last resort for community institutions.  Layoffs can be avoided by properly managing a workforce with an outsourced workforce management solution.  Using these tools allow institutions to naturally reduce their workforce through attrition.  The in-depth reporting coupled with schedules incorporating powerful forecasting, can help managers with this month-to-month process.

Outsourced workforce business intelligence solutions, like FMSI’s The Teller Management System™, provide a streamlined online scheduling module that optimizes teller staffing based on forecasted transaction volumes.  TMS helps banks and credit unions gain better control of schedule preparation and address the need to minimize labor costs without sacrificing customer service.  On average, banks implementing TMS realize a $30,000 annual savings, per retail branch.

 

Excerpt taken from John W. Schoen’s MSNBC article Banks rely on lending as trading profits shrink

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