The Risk of Unnecessary Movement (of Cash) in Your Financial Institution

7 Wastes_Unnecessary Movement

Banks and credit unions do not often consider the risk or expense associated with unnecessary cash movement around their network. The truth is, there can be a significant amount of waste hidden in the process of moving cash to and from your institution and cash points.

Financial institutions sometimes make unnecessary orders and deposits that keep cash on the move and hard to track. Too much movement can occur in many forms across the bank network. A common example is when a branch receives an order from their armored car carrier for $20 dollar bills, and then turns around and deposits $20 dollar bills (cross-shipping.) Additionally, interbranch transfers may occur because a location may think they are low in a denomination, but it could be because it is simply low for that location’s comfort level, not because they are actually too low.

“I’m a real big proponent of determining transportation needs based on true need rather than a static schedule of cross shipping,” said Robert Lynch, Senior Vice President of National Financial Business Development for Loomis US. “Financial institutions are used to getting cash two, three, or four times a week, and maybe they don't need it delivered quite as much as they've been receiving it in the past, so it's important to be able to analyze what you truly need in terms of cash services.” 

Financial institutions have also been conditioned over the last several decades to keep a static armored car delivery schedule; however, many banks and credit unions can’t justify these delivery schedules based on current carrying costs, delivery costs or cash usage. Just because a branch received cash two times per week for the last 30 years doesn’t mean it needs to today.

We recommend that branch leadership take time to review their armored car delivery and pick-up schedule to ensure they are not overpaying and are minimizing fulfillment costs, while reducing overall cash movement between branches and the armored car carrier.

To learn more about where to look for waste and areas of improvement in the cash supply chain, click the link the link below to download our new e-book, “The 7 Areas of Waste That are Killing Your Bank’s Efficiency.”


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