The Second in a Four-Part Series on Creating Successful Operations

There’s a prevailing theory within the banking industry that products have become commodities and that service is what really differentiates one financial institution from another. Whether your organization embraces that theory or not, one thing is for certain --customer service is wholly connected to operational effectiveness. And nowhere is that service more critical than at the customer service representative or teller level.

Nothing can elevate a financial institution’s reputation, promote its brand, and further its reach like competent and friendly teller operations. They are moment-of-truth touchpoints by which customers are most likely to form their overall opinions about the institution.

How well processes (like opening an account) are conducted and how well customers are treated are equally important in teller operations. Yet properly hiring and training front-line staff is just the beginning of getting it right. Institutions must also manage their people and processes effectively. Doing so requires a periodic review of all teller procedures.

The search for improvements

For most financial institutions, efficiencies can quickly be realized by eliminating unnecessary activities. A good starting point is to examine any step that is done because "that’s the way it’s always been done.” Too often, organizations lack operational rationale for procedures and, in many cases, processes will vary greatly across institutions that have more than one location.

For instance, teller reports, forms and tickets are found in every imaginable type and format. Is all that paperwork absolutely necessary? Reengineering reports and forms into standard formats and reducing the need for manual completion can save time and reduce errors.

Financial institutions should also identify the procedures used for each type of customer transaction, including night deposits, banking by mail, stop payments, and holds. Are receipts for night deposits mailed to customers? If so, why? Are shortcut functions available within software and used by tellers? Why use numerous keystrokes to process the most common transactions when one simple stroke is sufficient?

By examining the underlying principles of, and logic behind, each customer transaction step, institutions can then explore alternatives and improvements for their operations.

Doing it better, smarter

One such improvement is the development of a platform that guides tellers step by step through various tasks such as opening a new account, closing one, or putting a hold on a check. Implementing a straightforward platform system will always reap across-the-board efficiencies.

Additional enhancements can be uncovered when an institution further examines its vault procedures. Steps for verifying cash, the practical rebundling of currency, and addressing the frequency of cash shipments and ordering are just some of the issues that can produce insights on making stronger improvements.

Perhaps one of the most crucial keys to effective operations is minimizing resource requirements. Critical among the concerns is better teller scheduling. Financial institutions should pursue every reasonable effort toward staff optimization. Having the right people, in the right places, at the right times not only supports better operations, it can also lead to a competitive advantage through better customer service.

Looking long and hard

Conducting a teller workflow analysis can uncover many opportunities to create more effective operations and become a more successful financial institution. It’s a powerful way to identify shortcomings, eliminate redundancies, and ensure that all tasks are being conducted uniformly.

With a focus on improving teller service, your financial institution will reinforce its commitment to the overall customer experience, and shouldn’t that be the ultimate objective for any operation?

Part three of this four-part series explores the operational focus on bookkeeping and accounting.