Taking It to the Teller Line: Considerations for Implementing Teller Image Capture

by Bob Meara, September 23, 2011
Industry Trends
North America

Abstract

A third of the top 25 US retail banks have taken check image all the way to the teller line, and another third will likely do so in the next two years.

Since the passage of Check 21 in 2004, US financial institutions of all sizes raced to implement image exchange and distributed capture projects as a way to enjoy noteworthy operational efficiencies. Most popular was branch image capture (the installation of a back counter workstation and capture device), now in approximately 85% of US financial institutions. Though they once loved branch capture for the transportation savings it afforded, financial institutions are gradually having buyers’ remorse with branch capture and are thinking about bringing image capture to the teller line.

According to a new report, Taking It to the Teller Line: Considerations for Implementing Teller Image Capture, more than 700 US financial institutions have implemented teller capture as a means to extract additional operational savings while improving the customer experience in the branch. As a percentage, the largest banks have led the way, with a third having already taken capture to the teller line.

“Most financial institutions responded to Check 21 with a back counter approach to branch capture,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “It was the path of least resistance, but it also brought administrative work into the branch network. Now, with a growing need to improve branch efficiency and effectiveness, more banks are exploring teller capture.”

The report begins with a short primer on branch image capture, with its several variations including teller capture, along with evidence of its likely continued growth. The report then makes a case for teller capture, summarizing its key benefits along with the common rationale for, as well as historic barriers to, implementation. The report then summarizes key considerations associated with planning, testing, and implementing a teller capture initiative based on interviews among 10 financial institutions in the US and UK and 12 vendors of teller capture applications and hardware.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

6

The Case for Teller Capture

11

 

Historic Barriers to Adoption

12

Vendor Landscape

14

Teller Capture Considerations

20

 

Solution Considerations

20

 

Implementation Considerations

26

Conclusions

33

Leveraging Celent’s Expertise

34

 

Support for Financial Institutions

34

 

Support for Vendors

34

Related Celent Research

35

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