Whoknew

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The Fear of “Running Out of Cash” is an Illusion

Every responsible branch manager strives to satisfy his/her customers’ banking needs, especially when it comes to their demands for cash. Not being able to fulfill a customer’s request for cash at a bank or credit union branch is probably every head teller’s nightmare! Every banker wants to have more-than-adequate cash, and is pretty fearful of running out of cash (total cash holdings at the branch; not to be confused with cash flow at the branch). This fear, however, is an illusion that leads t...

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Topics: Vault Cash, Cash Usage

Make Running Out of Cash a Thing of the Past

Straps of Cash - Emergency Shipments At one point or another, most customers have probably experienced an ATM that’s out of cash, or had trouble getting the denominations they need when they visit a branch. It’s rare, but it happens from time to time at most branches, and sometimes more often than some would like to admit. Why are branches running out of certain denominations and cannot fulfill demand? How does this shortage impact the branch and its customers? What can branches do to address th...

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Topics: Cash Management, Vault Cash

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Myth of Branch Cash Management: Reducing Cash equals Optimal Cash Levels

#1 Myth of branch cash management: Reducing Cash equals Optimal Cash Levels While cash is central to banking operations, most financial institutions (FIs) carry too much of it (about 20-30% more than what they actually need) and unwittingly bear the direct and indirect costs of carrying excess cash. When banks and credit unions find out that they’re carrying too much, they often reduce their cash levels by a flat percentage across the board and assume that they’ve addressed the issue and solved ...

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Topics: Branches and ATMs, Cash Limits, Cash Management, Vault Cash, Cash Usage

Recover Your Federal Reserve Balance and Improve Profitability within 60 days... Here's How!

Depository institutions, such as banks and credit unions, can significantly reduce their reserve requirements and eliminate balances held at the Federal Reserve Bank by implementing retail sweep (aka Deposit Reclassification) programs. Freed-up balances can then be used to boost lending and increase profits. It is best for depository institutions to implement a tried and true retail sweep solution because their sweep percentages optimize non-reservable balances and maximize earnings potential.

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Topics: Vault Cash, Profitability, Federal Reserve, Deposit Reclassification

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Top Three Challenges & Solutions for Branch Cash Management

With interest rates poised to rise in the coming quarters, financial institutions (FIs) must seriously undertake cash management initiatives that identify and minimize non-earning assets (such as un-needed or excess cash in ATMs, cash dispensing machines, teller drawers and vaults), optimize cash inventory and redeploy excess cash profitably through loans and investments. While most FIs “think” they manage cash efficiently, data shows that cash is often managed up - to limits, not down - to usag...

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Topics: Cash Limits, Cash Management, Vault Cash, Cash Usage

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The Biggest Pitfall of Branch Cash Management - Managing Up to Limits

  Financial institutions (FIs), such as banks and credit unions, set limits on the maximum amount of cash they can carry in their branches and ATMs. These limits reflect cash needed to maintain insurability, regulatory compliance and risk management, and to meet fluctuating customer cash withdrawals. And that’s all well and good. But most cash is managed up to this maximum cash limit, and this is the biggest pitfall of branch cash management today.

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Topics: Cash Limits, Cash Management, Vault Cash

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The State of Cash Management in Today's Banking Environment

The aftermath of 2007 led to extreme risk aversion and excessive cash hoarding by financial institutions (FIs) over the past decade. But today’s economic, interest rate and regulatory environment is much more cheery, so FIs must get back to aggressively managing cash assets by reallocating reserves, optimizing cash holdings and boosting lending.

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Topics: Analytics, Cash Limits, Cash Management, Vault Cash

4 Common Branch, ATM and Vault Cash Management Mistakes

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Topics: Cash Management, Vault Cash