Wednesday, March 04, 2015

ATMs Didn't Displace Bank Tellers?

Timothy Taylor: "ATMs and a Rising Number of Bank Tellers?"  (Via Marginal Revolution.)

Why did the number of bank tellers rise even as ATMs became prevalent? Bessen highlights two changes. One major change wass the spread of opening more bank branches. Bessen points out that you could now open a branch with fewer bank tellers than before; in addition, I'd add that many states were relaxing their rules and allowing banks to open more branches both within and between states during the 1980s and 1990s in particular.

The other major change was that the job of a teller changed. Banks began to offer more services, and tellers evolved from being people who put checks in one drawer and handed out cash from another drawer to people who solved a variety of financial problems for customers.