Branch Managers who oversee cash operations are burdened with estimating branch and ATM cash flow in order to properly service their customers. On top of that, managers must balance delivery schedules, ordering time frames and limits – all while preparing for unexpected inflows or outflows, that can happen at any time. How can you manage competing cash needs, while also addressing all the other operations of the branch?
Many banks and credit unions choose to handle cash reviews internally, but there is an alternative option. There are professional consultants and tools available to help you determine cash demand, forecast necessary levels and compile data in an actionable way.Let’s explore the pros and cons of each, as well as what you should consider before making a decision about your internal cash studies.
Many banks and credit unions are still conducting their own internal cash studies. With this, you must take into account all the cash touchpoints from your tellers to financial managers and ensure it’s being handled effectively at each touchpoint. Are you truly prepared for peaks and ebbs in your cash demand, without having excess? This includes holidays, tax season, payday – the list goes on and on.
There’s an innumerable amount to consider when weighing your branch cash management.
Although it seems wise to “DIY” these branch cash management processes, many times the cash study is never completed. Most branches have already optimized staffing, which does not leave employees with time to undertake a cash study. Most revert to the practice of ‘do what they’ve always done’. In addition, setting the correct level of cash does not always effectively meet customers’ needs, because denomination mixes are typically not taken into consideration.
You may be thinking that the cost required to hire a professional will cause a strain – especially if you have a restrictive budget. But not only could this be holding your bank or credit union back from reaching its fullest potential, by reducing non-earning assets, but there are many processes that can be streamlined to avoid constant communication between multiple departments and eliminate time consuming ‘guess-timates’ on cash order amounts.
Seasoned professionals have worked in the branch cash management industry for decades, and chances are, have an actionable solution that can help your bank or credit union.
Many times, technological processes are outdated, and there are myriad of resources available to improve your level of service and customer satisfaction. Whether you choose to conduct internal cash studies yourself or defer to a professional, be aware there are solutions out there to produce efficiency and eliminate excess non-interest generating cash.
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