Cash Optimization SOLUTIONS

Cash Distribution Network Optimization

Correctly managing the cash supply chain in your ATM and Branch network, and accurately forecasting cash requirements can be difficult, time consuming, error prone and expensive. Before you embark on an expensive and time consuming “cash transformation” project, consider Perativ. This dynamic, automated SaaS platform will eliminate data lags, provide you with enhanced cash data, dramatically reduce your idle cash and give you visibility into all the components of your cash ecosystem and positioning you for further cash transformation thereafter.

Ensuring adequate cash in ATMs and Branches to meet customer demand cannot be compromised.  However, to achieve this cost effectively is very difficult.  In order to optimize cash in a bank’s distribution network, two things must happen. First, float must be minimized by eliminating idle cash. The cash buffers throughout a bank’s cash supply chain are one of the main reasons costs of handling cash remain so high. The second necessity for cash optimization is automation and integration of the four core functions at the heart of cash distribution that exist within the bank. The data lags that exist across these interrelated, yet unintegrated  functions help to drive cash processing and distribution costs up.

Most banks use cash forecasting software and set at least 3 key cash forecasting objectives:

1. Avoid cash out situations - Ensure enough cash at each distribution point
2. Minimize CIT costs for loads and returns
3. Minimize idle cash required to deliver forecasted cash

However, these cash forecasting objectives CANNOT BE ACHIEVED BY CASH FORECASTING.

Cash forecasting is just one of the four core operating areas within the bank that are necessary to achieve these objectives. Optimizing cash forecasting alone will help but it cannot bring cash supply chain network costs down substantially. To achieve breakthrough results and achieve these objectives, banks’ cash management software should address the entire cash cycle, automating and integrating the four core functions: load compliance, treasury reconciliation, cash forecasting, and bulk cash ordering. The Perativ cash optimization solution automates and integrates these functions, supporting your teams and creating a synergistic system.

The Four Core Functions at the Heart of Cash Distribution Networks

Load Compliance

OBJECTIVE:   Track CIT load compliance to ensure right amount of cash delivered on right day.

Achieving breakthrough cost reductions in cash distribution starts with automating load compliance.  Typically, an accounting/operations functions, this is usually well done within banks and is completed within days of the scheduled CIT visit.  However, those days to complete, which have always been fine, are fine no longer.  They are a data lag. Your cash forecast and bulk cash order are not informed daily about compliance.  Your treasury reconciliation cannot be done until load compliance is complete creating additional data lags that are not informing your forecast or cash orders. 

Perativ’s cash management software for banks supports your team by automating load compliance. Our 6-point matching system means that 100% of compliant loads are system matched and never need human intervention. Only the exceptions, the non-compliant loads are routed to your team for prompt resolution.  Perativ’s diagnostic and automation tools are there to help your team quickly resolve these exceptions. Detailed reports by CIT and vendor are also provided to facilitate active and close management of your CIT relationships.

PERATIV IMPACT: Less Work. Improve Data Speed and Accuracy. Facilitates Daily Treasury Reconciliation

Treasury Reconciliation

OBJECTIVE: Reconcile cash returns and vaults.

Monthly or weekly, your treasury team will reconcile the cash float and they are likely doing a good job at it.  This is typically a compliance function to track the existence of the cash in float on a regular basis.  This process can only start once the load compliance team has completed their work for the period in question.  The float is regularly balanced using a suspense or in-transit account that is reconciled later or may reverse in the following periods.  The results of the treasury reconciliation do not impact the daily cash forecast or daily bulk cash orders.  Having this compliance function completed monthly or weekly and using a suspense account to balance has always been fine, but it is fine no longer.  Having this time frame, and using a suspense account makes it impossible to inform your daily cash forecast and bulk cash orders with the full value of your data. This data lag forces your teams to forecast and order cash without real time and projected cash balances and results in material cash buffers throughout the system keeping your costs stubbornly high.

Perativ’s cash management system for banks supports your treasury team by (i) eliminating the waiting period for completion of load compliance and (ii) automating treasury reconciliation with ~98% of treasury items system reconciled.  Only the exceptions are routed to your team for prompt resolution and Perativ’s diagnostic and automation tools are there to help your team quickly resolve these exceptions.  With Perativ, your team can achieve daily, not weekly or monthly treasury reconciliation and eliminate the suspense account, providing enhanced cash data supporting their compliance role.  This enhanced cash data is now also available daily to your cash forecasting and bulk cash order teams, providing them accurate daily information on cash commitments and locations at all times. 

PERATIV IMPACT: Less Work. Eliminates Data Lag. Eliminates Suspense Account. Informs Cash Forecast and Bulk Cash Orders Daily.

Cash Forecasting

OBJECTIVE:  Predict the optimal amount of cash for the ATM or branch to mitigate idle cash but have enough cash.

Cash Forecasting is a critical area for cash distribution network management.  If your bank already has a strong cash forecasting process you are happy with, we can simply integrate that forecast into the Perativ system and you can access the breakthrough savings and enhanced cash data now available.

If you are looking to upgrade your cash forecasting solution, there is no better choice than Perativ’s cash forecast.  Perativ’s cash forecast leverages our proven machine learning forecast engine, our pre-emptive alert generator, and the real time enhanced cash data from daily automated load compliance and treasury reconciliation. Perativ will provide your team with an accurate dynamic AI cash forecast that further reduces the need for manual adjustments for date shifts or recurring events.  Our advanced pre-emptive tracker mitigates emergency loads and maximizes cash uptime with minimum amounts of cash float.  

PERATIV IMPACT: Accurate Informed Forecast. Less Work. Less CIT.

Bulk Cash Orders

Perativ’s impact is proven: 42% reduction in cash float; 50% reduction in ECLs; 15% reduction in RCLs; significant reduction in workload (see cash study here).

Perativ is safe.  We never have your customer personal data.  You provide only relevant cash data on a secure reporting/log server.  Perativ is SOC2 and SOC3 compliant and has partnered with the Microsoft Azure Cloud for operations. 

Perativ enhances data and reduces workload.  Our comprehensive reporting suite provides you with reporting tailored to your bank and your needs.  Your teams will see their workload and stress levels drop while they deliver enhanced data and accelerated results.   Together with Perativ, your teams will breakthrough current barriers and drive down the cost of cash distribution significantly and sustainably.  

Ready to transform your cash distribution network? Let Perativ’s cash optimization system be your solution.