Vault Forecasting-as-a-Service: A competitive advantage for cash-in-transit
For banks and credit unions, notes and coins are not just a physical asset but also a silent expense. The costs associated with maintaining excess cash include not only the logistics and security of storage but, more critically, the lost potential income from investments or loans.
As interest rates climb, the opportunity cost of idle cash becomes more pronounced, highlighting the need for precise cash management. This is where vault forecasting technology comes into play, offering a strategic solution to manage inventories effectively and reduce the financial burden of cash inventories.
Enhancing cash efficiency
Vault forecasting uses historical transaction data across multiple lines of business, including branches, ATMs, commercial customers, and smart safes, to predict future cash demand accurately. This predictive analysis forms the basis for strategic recommendations on cash orders or deposits to the Federal Reserve or central bank by denomination, ensuring that institutions maintain optimal cash levels to meet customer needs without incurring unnecessary costs.
The role of CIT companies
CIT companies can play a crucial role in this ecosystem by offering vault forecasting as a service to bank and credit union customers. They can both deploy the technology and incorporate CIT-specific knowledge that might affect cash usage, such as regional events, and cash transportation schedules into the recommendations. In doing so, they strengthen their competitive edge, for themselves and their clients.
How can NamSys help?
NamSys' Currency Controller offers a proven vault forecasting module that has demonstrated success in helping organizations decrease and effectively manage their cash holdings across various vault locations. This product comes pre-integrated and utilizes existing transaction data from cash vaults, ensuring immediate cost savings for users. Contact NamSys today to learn more at sales@namsys.com