How to cut ATM costs?

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Although customers are shifting to online modes of payment, ATMs continue to be relevant and used by many. But, many financial institutions find it quite challenging to manage their ATMs without encountering losses. The deployment and upkeep of these machines are quite cost-intensive and cannot bring in profits without careful planning. 

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Financial institutions that independently manage their own machines often run into numerous issues that cause customer dissatisfaction besides monetary losses. These institutions usually do not have the necessary resources or workforce to manage their own fleet of ATMs.

In this day and age, where customers choose to interact with machines rather than employees at a bank, it is imperative to make use of the right solutions to cut down ATM costs.

Cutting down ATM costs via optimized cash management

Effective cash management is one of the best methods by which financial institutions can reduce their ATM costs.

Many banks today have realized the benefits of partnering with a third-party ATM service provider. Besides purchasing and deploying machines wherever necessary, this external firm will also manage it and take care of all issues related to these ATMs. Their services include regular software updates, machine updates and compliance with regulatory policies. Financial institutions will have a hard time getting involved in all these aspects related to ATMs, and so, an ATM service will take all these responsibilities off their hands.

Since ATM service staff consists of trained professionals who have sufficient experience in this field, they will be much more skilled than the bank’s employees at carrying out tasks quickly and getting the machines running to maximize profits.

Among the many services they offer, these external firms also use advanced cash forecasting systems to evaluate the cash demands of each machine accurately. Using cash forecasts with minimal errors, banks can streamline their cash distribution to ensure adequate amounts in each machine and prevent them from being overfilled.

Most banks use Cash-in-Transit services to supply money to their various ATMs. The schedules of these partners are relatively rigid and cannot be changed without several weeks’ notice. This makes a sudden and unexpected requirement to fill cash extremely expensive for the financial institution. Having such an inflexible supply schedule can also lead to increased customer dissatisfaction when many find themselves unable to withdraw their desired amounts from the bank’s ATMs.

With the help of proper cash forecasting and by mapping out the correct days to refill machines, financial institutions can effectively cut down the need to fill machines with no prior warnings. By following a schedule based on the forecasts, they can prevent the spending of money for additional services from the suppliers.

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How do Perativ’s services help reduce ATM costs?

Perativ’s cash optimization solutions are one of the best options today for banks who want to make their cash distribution more effective. This automated Saas platform helps manage the flow of cash between multiple locations, including ATMs and bank vaults involved in the bank’s network.

Many banks rely on cash forecasting to ensure adequate cash supply, reduce the idle cash in various machines and bring down CIT costs. But, all these cannot be guaranteed with just the help of a basic cash forecasting system.

Perativ goes several steps further and helps in automating and integrating several essential functions besides cash forecasting. These include load compliance, bulk cash ordering, and treasury reconciliation.

Perativ’s software helps with automating load compliance, removing the need for an employee to take action and make decisions. Only the non-compliant loads are sent to the staff for resolving any issues. Perativ also provides tools that help the bank’s staff resolve issues with non-compliant loads. In the past, load compliance was carried out by banks a few days before CITs filled the machines. But, since it took several days to complete, there were often data lags. With the help of this efficient software by Perativ, these lags can be eliminated, and the work will be completed much faster.

Treasury reconciliation can only be carried out once load compliance has taken place. Perativ solutions make load compliance quicker, essentially making it easier to move on to the next step. With automated systems, treasury reconciliation will also be done by the software for a large number of treasury items. Only a few will be sent to the bank’s team for resolution. Treasury reconciliation, which was done weekly or monthly, can now be done daily using the software.

Perativ provides banks with an efficient AI-equipped cash forecasting system. For banks that already have a well-functioning forecast system in place, Perativ will integrate it with their own software, resulting in more accurate data regarding the cash demands, which helps in lowering costs.

Perativ does not collect customer data of the banks they partner with and can be trusted with the cash information relevant for their functions. The software produces regular reports that are customized based on the needs of each financial institution. The bank will no longer be required to deal with and process massive amounts of data regarding cash management and can focus on the other tasks at hand.

Perativ efficiently helps with fine-tuning the financial institution’s cash-management to ensure the best returns and minimal costs.

In Conclusion

Automated solutions from trusted software provider platforms are among the best options today for banks looking to cut down their costs regarding ATM management and cash distribution. Though cash forecasting is essential for cutting down costs, it has to be integrated with several other functions for maximum efficiency and least expenses.

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Summary
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How to cut ATM costs?
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In this day and age, where customers choose to interact with machines rather than employees at a bank, it is imperative to make use of the right solutions to cut down ATM costs.
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