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5 Reasons Why Banks Need to Optimize ATM Cash Management Now

Nov 28, 2011

With growing pressures on bottom lines, financial services organizations are increasingly looking to reduce operating costs. Many banks are eyeing their sprawling ATM networks for opportunities to operate more efficiently and cut expenses.

Here are 5 reasons why your institution should optimize ATM cash management now:

1. Cash is king. Many banks maintain as much as 40 percent more cash than necessary at their ATMs. That ties up cash that institutions could put to better use elsewhere. Advanced ATM management systems can help you accurately forecast daily cash demand and reduce excessive cash levels at your ATM locations.

2. More ATMs mean higher operating costs. Today, there are an estimated 2.3 million ATMs worldwide. Experts expect the global installed base of ATMs to jump to 3.2 million terminals by 2016. Banks that take the initiative now can rein in ATM operating costs before cash management problems get any more challenging.

3. Lower costs. Cash-related costs make up 35-60 percent of the overall costs of running ATMs. ATM management tools like BPC's SmartATM use sophisticated mathematical algorithms to analyze all ATM transactions and pinpoint demand patterns to help you ensure the most efficient use of cash across your network.

4. Improve ATM servicing. It's costly and time-consuming to service your ATM network. Automated ATM demand forecasting and replenishment planning tools can help you save personnel time, reduce servicing costs and ensure you have the right cash levels at the right locations.

5. Customer service is a top priority. In today's turbulent economy, more consumers are turning to cash for purchases. That makes it even more important to make sure you have sufficient cash levels across your ATM network. Automated ATM management solutions help your financial services organization reduce out of cash incidences while maintaining service quality and availability for your customers.

As the size and complexity of ATM networks increases, it's critical for banks and other financial services organizations to continue to invest in this important channel as an important customer service tool and touch point. As they do so, institutions need to be sure they are optimizing ATM cash flows to improve return on cash assets, reduce operating costs and deliver high-quality service to their customers.

Richard Phillimore is executive vice president at BPC Group. Richard has more than 45 years of experience in the global financial services industry, including senior positions with NatWest Bank, MasterCard Worldwide and Fidelity National Information Services.

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