Financial institutions have to maintain the delicate balance between ensuring cash availability to their customers and minimizing costs. Smaller institutions find it difficult to spare resources and employees for maintaining their ATMs. Even bigger banks often face challenges regarding cash distribution, upgrades, and compliance when it comes to the ATMs they have installed in various locations.
Today, many such financial institutions partner with atm services that help optimize their ATM networks and effectively manage cash.
Every time a machine breaks down, it would be hard for the bank’s employees to get there and repair it. But with their team of trained professionals and branches dedicated to this job, ATM services can quickly send out their staff to do the needful. With excellent cash forecasting systems that accurately give insights regarding the cash requirements of each machine, banks can create a proper supply schedule to deliver cash to the machines.
Financial institutions that wish to retain their autonomy and work only with CITs often use software providers to automate and integrate various processes associated with ATM cash management.
Both the options aimed at optimizing cash management come with numerous benefits for the financial institution.
Many banks partner with trusted CITs who are tasked with supplying cash to their machines regularly. They usually have a fixed schedule which can only be altered after several weeks’ notice.
Unseen emergencies that demand immediate cash refills often lead to higher expenses.
With an efficient cash forecasting system in place, the bank will have a clear picture regarding the cash necessities of all the ATMs at different sites. With the help of AI insights regarding cash requirements, banks will be able to fill ATMs with adequate amounts of cash that will last them until the next scheduled visit by the CIT.
The schedule can also be improvised according to the data from the software to prevent any unexpected emergencies from arising. This saves the bank several thousands of dollars that would have been spent on demanding immediate services from the CIT.
Banks that manage ATM fleets must constantly evaluate and test their machines to see if they comply with various regulatory policies. If any irregularities are discovered the bank will be charged hefty fines.
The employees of the bank will be tasked with other responsibilities and might not be able to efficiently ensure compliance every time. But when partnering with an ATM service, the external firm will regularly assess the latest updates regarding regulations and make the necessary changes every time.
Improved profits and customer satisfaction
It’s been discovered that many banks fill their ATMs with more than 40% of the cash necessary.
When relying on human guesswork and trying to decipher patterns, it is challenging to settle on an adequate amount with which each machine will be filled. To save money, banks often ask CITs to fill all the ATMs with the same amount, simultaneously.
But machines in busier regions are used by a significantly larger number of customers than those in other areas. This means that some machines will quickly run out of funds, while others will have significant quantities sitting idly.
With an efficient cash optimization system in place, banks can determine precisely how much money should be deposited in each machine and when.
They can alter the amounts deposited in each ATM to cut down travel costs and refill multiple machines on the same day. This means that the amount of cash sitting idly in many machines will reduce considerably. This money can be moved to other processes and be used to generate profits.
When an ATM near a mall or a busy street quickly runs out of cash, the bank would lose all the profits they would have acquired through withdrawal charges. But ensuring that there is always necessary cash and proper denominations in the machines helps with the steady flow of earnings from customer withdrawals.
Not finding an adequate amount of cash in the ATM they visit will also lead to dissatisfied customers who consider shifting their accounts to other banks with ATMs nearby.
But ensuring that there is always cash available in your machines will keep your customers happy and have them trust your firm. Account-holders of other banks who visit your well-supplied ATM will also consider opening an account at your bank, helping you expand your consumer base.
With the help of ATM services, you will continuously receive updates regarding your cash. Moving and storing large amounts can cause criminals to target your machines and transit vehicles.
This can be prevented by carrying only the adequate amounts on specific days via well planned out routes. You will no longer be at risk due to excessive and unnecessary levels of cash at particular locations.
Installing electronic locks will also make it much easier and safer for CITs to deposit money in your machines. The code for the lock will only be valid for a certain amount of time, making it much harder for criminals to get in and steal your money. There is also increased efficiency since you no longer have to exchange physical keys with your CIT.
In today’s world, it is imperative for banks to have in place an efficient cash management system that can streamline the various functions involved in its network.
Two of the latest options in cash management include partnering with third-party services or making use of intelligent platforms that provide efficient software. The many benefits to cash management include reduced costs, increased profits and customer satisfaction.