Over the last couple of weeks, we’ve been talking about the results of channel shifts away from branch banking at some — not all — banks. Add SunTrust Banks Inc. to the list of FIs that are embracing the expense benefits of alternative banking channels.

Tucked into SunTrust’s earnings report released late last week was the disclosure that, indeed, the bank is taking the plunge and aggressively shifting to alternative banking.

Moving to consumer bank efficiencies. Savings to date here have come entirely from our sales and service productivity initiatives. We’ve made these changes in response to changing client behavior and preferences. Clients’ willingness and desire to utilize self-service channels has increased, so we made numerous investments over the past few years in client-facing technology such as mobile and ATM enhancements.

The adoption rates of these self-service channels has been high, which has shifted transaction volume out of the branch. This is allowing us to refine our branch network and staffing models. Specifically, we have reduced our branch staffing levels primarily through attrition as we transition into a new staffing model. This model will be more efficient, and we believe it will enable us to maintain our high levels of client satisfaction and loyalty.

In all, Suntrust aims to save $300 million by the end of 2013 in part by enhancing “consumer bank efficiencies,” which includes “channel optimization” and “alternative channel management.” (See P17.) In 2011, SunTrust secured $75 million of savings, but it has yet to realize savings from “channel optimization” and “alternative channel management.” In other words, this channel shift is ongoing at SunTrust.

SunTrust Banks, Inc., based in Atlanta, had total assets of $176.9 billion as of December 31, 2011.

Note that Ginger Schmeltzer, SVP, Digital Channel Management, SunTrust Banks, will speak specifically about channel diversification at our upcoming Bank Innovation 2012.