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Unformatted text preview: P6-17 (Appendix) Activity-Based Management [LO 6]
Primary Savings and Loan of Denver is conducting an ABM study of its teller operations. In this
regard, the company has identified the following major activities performed by bank tellers:
1. Process deposits
2. Process withdrawals
3. Process requests for certificates of deposit
4. Answer customer questions related to balances, overdrafts, interest rates, etc.
5. Print out customer activity statements
6. Provide access to safe deposit boxes
7. Reconcile cash drawer The company benchmarked its operations against banks in other cities and has found that it has
many more tellers in comparison to banks of similar size. Further, the company has a relatively
unsophisticated Web site and call center. How do the company's Web site and call center affect the demand for teller activities and the
cost of teller services? The company’s Web site and call center is unsophisticated and this is seen by the customers,
therefore making the customer not want to do business with the company let alone the teller that
work there. I know that I would do business with an unsophisticated company or its employee’s. Identify two or three ways that technology can be used to reduce the cost of teller services. Technology can be used to reduce the cost of teller services by processing deposits, withdraws, and by
processing requests for certifications of deposits. Technology can also print out customer’s activity
statements at the push of a button at the ATM. ...
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This note was uploaded on 06/21/2011 for the course MANAGERIAL MT425 taught by Professor Hodgson,k during the Spring '11 term at Kaplan University.
- Spring '11