The COVID-19 pandemic has increased the focus of banks on the impact of fixed costs. The unfortunate axiom is that even though the volume of banking activities has decreased, fixed costs remain constant regardless of volume.
Post the 2009 financial crisis, banks have done a good job at reducing fixed costs by relying on trusted partners. For example, banks have reduced the number and amount of staffing in brick-and-mortar branches, leveraged third-parties to eliminate internal operations, adopted various digital processes in lieu of physical processes, and now the majority of banks buy their applications and outsource their data centers rather than staffing to write and maintain code.
In the current crisis, have these measures been enough? What other business processes that carry fixed costs can banks eliminate while simultaneously improving service to their customers?
Here are a few solutions:
Cash Automation with Remote Cash Capture Managed Services
Many banks provide end-customers with smart safes to help them automate cash handling and deposits. However, this is an example of a high fixed cost operation. In offering this service, banks must open and maintain vaults resulting in vault fees, annual audit fees, dead cash, and other operational costs. To eliminate these costs, banks should consider a solution provider that offers a managed remote cash capture solution including vault services. Remote cash capture solution providers enable banks to eliminate the need for vaults and dead cash, provide armored carrier management, and reduce their operational burden.
ATM Managed Services
By implementing an ATM managed service solution, banks can easily extend their brand without needing to fully invest in every aspect of an ATM program. ATM solution providers can procure and install ATM’s, provide cash forecasting, optimize load frequencies, manage armored carrier relationships, deliver device maintenance, and streamline processes to open new markets and extend their commercial footprint.
Armored Carrier Managed Services
Armored carriers are vital to the cash logistics process yet managing armored services can be costly and labor intensive. Armored carrier management service providers who have created deep carrier relationships and scalability are able to negotiate better rates and service levels than individual banks can on their own. Armored carrier management as-a-service enables banks to reduce vault and armored carrier expenses, streamline back office operations like cash reconcilement, tracking cash pickups, carrier branch coordination, decreased staff costs, while remaining equipment and carrier neutral.
Cash Connect is a leading national provider of ATM and Smart Safe Cash Logistics. Since 1998, it’s provided cash management services to financial institutions and independent ATM deployers, and its commitment to innovation helps its clients stay at the forefront of change. A division of WSFS Bank, Cash Connect supports over 32,000 devices in all 50 states.
Visit cash-connect.com for more information.
A Division of WSFS Bank.
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