Banks have many options to choose from when it comes to managing money. It is not usually advised to manage their own money when the number of staff in the bank is relatively smaller. Maintaining ATMs requires a fair amount of resources that financial institutions like these cannot afford on their own. In such cases, it is only practical to seek help from a third-party service provider. Even for banks with a large number of employees, not managing their cash in the ATMs might be the best option to increase profits and reduce costs. Here we will look at the options available for banks when it comes to cash management.
In-House Management
Banks can, if well-equipped for it, deploy their staff for this purpose. Instead of using their regular employees, larger banks could properly maintain a section dedicated to ATM networks. Benefits of in-house cash management include increased security since the decisions you make stay within your company. But this option tends to be a bit more expensive than bringing in outside parties. There will also be a chance of incompetence among the employees since they did not practice and gain expertise in this specific field, unlike the staff that works at an ATM service provider. The bank will have to evolve its ATM services according to the latest technology available, and they might find it a bit difficult to do on their own.
Commercially Developed Software
When using a software dedicated to this purpose, most of the cash management processes will be carried out automatically. This option is also less expensive when compared to the others. The software will dole out the requirements for each individual ATM and requires only a manual approval from an employee. This method ensures even better security than the previous ones since a software does all the work and produces regular reports.
Outsourcing
Outsourcing cash management helps reduce the amount of money and time a bank must dedicate to this process. All the complex operations will now be carried out by a team of professionals dedicated to this task. They will also be experienced from having worked with other financial institutions. They maintain the ATMs and provide upgrades according to the laws.
These third-party vendors will provide the bank with various cash management solutions that will provide multiple benefits, including customer satisfaction. The banks will have an advantage over their competition with the latest technology and good customer support provided by these ATM managing services.
A drawback of employing third-party vendors is the necessity to place your trust in a team outside the company. This loss of control over its own ATMs often creates hesitation in bank owners when they try to partner with a vendor.
Combinations
Some banks tend to opt for combinations made from the three options given above. This is not generally advised since different parties managing different ATMs will result in a few ATMs being more efficient. The other machines will lag due to a lack of technology and proper upkeep. If you have one particular tool or team to manage all your ATMs, it would be a simple matter to expand and add more machines.
To Sum Up
Banks can choose a particular method of cash management by looking at how efficient each one would be for them. The practicality of each option is subjective and depends on various factors, including the size and available resources of the bank. If it seems to be the most efficient one, they can even opt for a combination of several. While outsourcing leaves the firm free to deal with other concerns, keeping it in-house increases the security of the transactions.
