By : Cleopatra Mavredis
April 13, 2017 08:30 AM
Despite the predictions of some doom-mongers, cash isn't going away anytime soon. Therefore, how banks manage cash and ensure it gets to the branch and into the hands of consumers as effectively as possible is still an essential part of any business' operation
There are few things more frustrating for consumers at the ATM than being told the machine is out of notes, or does not have the denominations they need. But good cash management isn't just about keeping ATMs well-stocked. It's about understanding demand to make sure that every device in your fleet has the cash consumers need, while ensuring that costs are kept to a minimum.
Cutting the cost of cash
Cash supply management is one of the top three operational costs that retail banks and ATM operators face on a day-to-day basis. Eliminating costly processes such as excess cash shipments and emergency cash orders, if not carefully managed, could potentially backfire and jeopardize the customer experience. Therefore, the delicate balance of maintaining an efficient and cost-effective ATM network must not be underestimated.
Banks today have an extensive amount of information available to assist in this decision-making process. However, quite often data is not always either (a) associated with a specific business outcome or (b) analyzed with the right business scope in mind, leaving much room for improvement of these processes. Solutions that are “built for purpose” are most likely to succeed in helping bankers today achieve those sometimes unthinkable challenges.
The benefits of effective analytics
NCR's APTRA™ OptiSuite offers a range of tools to help create a modern cash management strategy, enabling banks to proactively manage economic volatility that leads to fluctuations in cash deposit and demand for each individual cash point within a network.
The technology can analyze a wide range of variables to help calculate the ideal stock levels and replenishment schedules for any given ATM. For example, it has access to past demand levels, current trends such as interest rates and outside factors that may impact the usage of an ATM, such as holidays and local and national events.
What this means in practical terms is you can benefit from alerts that enable you to pre-emptively address potential out-of-cash events before they happen, significantly cut the number of emergency cash orders needed, and eliminate excess and unnecessary cash inventories and shipments. But most importantly, your customer never needs to know all that you do for them!
This solution therefore not only enables you to provide a better customer service by ensuring consumers always have access to cash, it can also offer significant cost savings. In fact, typical savings as a result of the tool are around $1,000 per ATM per year.
Edgar Rojas, General Manager Cash Solutions at NCR, noted: "Most financial institutions underestimate the saving potential an optimized cash management strategy can bring. It doesn't only reduce costs, but automates processes and puts banks in a better position to re-negotiate service contracts with cash processors and CITs."