Transforming ATM Networks with Modern Cash Management System

There is a lot of pressure to protect free access to cash in the community. However, as we know, there is a cost to handling cash that banks and ATM operators need to control.

For some time, experts have discussed the need for leaner, more efficient cash management processes and more predictive inventory systems. For example, as long ago as 2018 a McKinsey report highlighted that nearly half of banks rely on manual calculations to forecast cash needs for branches and ATMs.

The McKinsey report showed that there were many manual processes and a need for human intervention in fragmented systems. Since then, of course, the use of cash has declined but it remains popular across Europe according to the European Central Bank. But the costs to manage cash have not fallen however because of the rise in labour costs among many other factors.

Therefore, to maintain free access to cash via ATM networks it is even more about striking the right balance between improving service levels for customers and reducing costs for banks. This is where the innovative technological solutions for cash management, such as those provided by Auriga, come into play.

The Challenge of ATM Network Management

While a widespread ATM network is undeniably beneficial for customers, it poses significant challenges for banks. These include the high costs associated with cash handling, management, and security. Each ATM represents a complex chain of operations that involve multiple cash transfer operators. Without efficient coordination, this complexity can spiral into costly inefficiencies.

The answer lies in taking a more holistic approach. What is key within this is a data driven strategy to managing complex ATM networks more efficiently and to address the rising cost of access to cash. The advantages of continually collecting, analysing and producing actionable insights from how cash is being processed in individual ATMs and across networks generally are:

•  Strategic Planning Becomes Possible: By monitoring real-time data, banks can devise customized strategies for individual branches or regions. This tailored approach ensures optimal cash flow management and reduces unnecessary cash loading orders.
• Operational Transparency: Stakeholders have immediate access to both accounting and operational data relating to cash supply chains. This transparency allows for proactive interventions and modifications, as needed.
• Enhanced Customer Experience: A data-driven strategy minimizes ATM downtimes, ensuring customers have access to cash whenever they need it.

This data-first approach is exemplified by Auriga’s WWS Cash Management solution, which has been operational for Auriga’s customers for several years now, enabling them to improve customer experience while controlling the costs of access to cash in today is dynamic and challenging markets.

Here is how it works:

• Predictive Analysis: By anticipating the cash requirements of different organisational units, Auriga provides counting rooms with accurate demand and cash flow forecasts. Their predictive model accounts for variables such as seasonal peaks, public holidays, and daily usage patterns.
• Automation & Monitoring: Many banks still rely on manual processes or basic mathematical functions for cash management. With Auriga’s Cash Management software, banks can automate these processes, enable real-time monitoring and a more efficient intervention planning. Including reducing waste related to unnecessary order management costs by 25%. This not only reduces errors but also streamlines operations.
• Optimised Cash Transit Management: Through predictive analytics, banks can schedule cash resupplies effectively, minimising the chances of ATMs running out of cash and thus enhancing customer experience.
• Data-Driven Decision Making: With access to a comprehensive dashboard, banks can generate up-to-date reports and monitor key metrics such as cash availability, number of banknotes withdrawn, and order lifecycle. This rich data source allows for more informed and strategic decision-making. The orders generated by the AI system guarantee a reduction of the remaining cash stock in the cashpoints by 40%.

The financial landscape is changing, and banks and financial institutions must adapt and innovate to keep up. Traditional methods of managing cash are not only becoming obsolete but can also lead to inefficiencies and increased costs.

Leveraging modern, data-driven solutions such as those provided by Auriga is not just about keeping pace with technology; it is about strategically positioning a bank for future success. Adopting such technologies ensures streamlined operations, significant cost savings, and, most importantly, a superior customer experience.