Cost per Teller Transaction

Cost per Teller Transaction

KPI Details

Cost per Teller Transaction measures the total bank teller-related cost of completing transactions in relation to the number of transactions completed by bank tellers at retail branch locations over the same period of time. A relatively high value for this metric is typically related to a few common factors, including highly manual (e.g., error and rework prone) teller transaction processes and procedures (e.g., manual data entry, documentation management, balance reporting, etc.), overstaffing, general inefficiencies in teller transaction procedures (e.g., inadequate customer validation processes, a lack of standardized call scripts, inadequate segregation of duties, poor management oversight, unfriendly customer interactions, etc.), and sub-par bank teller training and performance. While companies typically seek to streamline operations and employee positions to reduce expenses while completing teller transactions, great care should be taken when doing so as too many layoffs may reduce employee morale as well as the bank's ability to complete basic account transactions in a timely and efficient manner.

KPI Definition

The total bank teller-related cost of completing transactions divided by the number of transactions completed by bank tellers at retail branch locations over the same period of time.

KPI Best Practices

• Align scheduled teller hours with high traffic times of the day/week
• Strategically install ATMs to accommodate customers geographical location
• Forecast work volumes based on historical data to appropriately staff the branch

KPI Calculation Instructions Cost per Teller Transaction?

Two values are used to calculate this KPI: (1) the total bank tellerrelated cost incurred through the completion of basic customer account transactions, and (2) the number of transactions completed by bank tellers at retail branch locations over the same period of time. Include the teller-related expenses incurred through completing teller transactions for all basic account transactions (e.g., deposits, transfers, withdrawals, loan payments, balance inquiry, etc.) in the numerator. Include labor (wages, salaries, commissions, benefits), overhead (occupancy, utilities, supplies, advertising, legal fees, etc.), and technology (hardware, software, etc.) costs in this calculation. Bank tellers should be considered to be employees who perform in-person basic account transactions at retail branch locations. Do not include activities that are performed by platform employees or managers (e.g., account opening, loan origination, etc.) in the numerator.

KPI Formula :

Total Teller-Related Expense / Total Number of Teller Transactions