Despite the improved outlook, automation and technology will continue to reduce the need for tellers who perform only routine transactions. For example, ATMs and the increased use of direct deposit of paychecks and benefit checks have reduced the need for bank customers to interact with tellers for routine transactions. In addition, electronic banking is spreading rapidly throughout the banking industry. This type of banking, conducted over the telephone or the Internet, also will reduce the number of tellers over the long run.

Employment of tellers also is being affected by the increasing use of 24-hour telephone centers by many large banks. These centers allow a customer to interact with a bank representative at a distant location, either by telephone or by video terminal. Such centers usually are staffed by customer service representatives, who can handle a wider variety of transactions than tellers can, including applications for loans and credit cards.