Fanera ltd cash optimisation
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Transcript of Fanera ltd cash optimisation
Where Business & Technology Converge © FANERA LTD. All rights reserved
CASH OPTIMIZATION
When considering cash optimization, the
Financial Institution usually completes a
number of phases of assessment. In most
cases, the first phase of assessment is to
determine the potential benefit from the
implementation of sophisticated forecasting and
cash supply chain management applications.
This benefit is estimated by comparing current
key performance indicators to global best
practice standards.
The simulation will show what the current cash
management levels are compared to what they
should be if an automated approach and
streamlined processes were in place. It also
indicates the margin of error in cash forecasting
and allocation compared to best practice.
To assist the with this phase of assessment, it is
proposed that we conduct an analysis of
transaction history from the ATM and Branch
network, and a quick review of cash handling
processes.
The business opportunity report offers an
excellent analysis of potential cash and related
expense reduction throughout your enterprise.
Upon completion of the analysis, we will provide
a report detailing any potential benefit that could
be achieved through optimized management of
the branch and ATM network.
How much cash to allocate to branches/ATMs in the
periodic plan ?
What is the cash replenishment level?
When to order cash ?
What is the utilization level compared to industry
averages?
Which processes can be streamlined for improved
efficiency?
What tool will be used to determine daily cash limits?
What tool will be available to centralize the monitoring
and management of cash balances and demand ?
How to Improve availability levels?
How to control the cash inventory ?
How to reduce subjective decision making ?
How to optimize cash within the cash reserve ratios
mandated ?
We help the bank answer the following:
Location analysis and optimization
Strategy/positioning
Business Plan
Service Levels
Profitability
Value proposition ( e.g. 24/7 )
Number of ATMs in operation and expansion plans
Customer Experience Management
Priorities and resource allocation
Customer satisfaction
Regulatory Compliance
Competitive environment
ATM Cash cycle
Forecasting
Ordering
Cash Reorder point
Replenishment/Scheduling ( Branch/Offsite )
IT Helpdesk
IT support
Branch
Cash Centers
CIT
Reconciliation ( Manual/Automated)
Uptime calculation
SLAs
Escalation
Reporting
FLM
SLM
Availability
Cash
Transaction types
Utilization
Withdrawals
Performance at peak
Historical trend
Seasonal trends and public holidays
Incidents
Cash Out
Technical
Float
End Balance
Excess
Network/region/machine
Trends
Cost of funds
Replenishment
Scheduled
Unscheduled
Scope
Business Process Data
The scope is focused on conducting an analysis of transaction data from
selected ATMs and branches; this is run through a cash optimization solution
to determine the degree of improvement that would result if such a solution is
implemented in the Bank. The scope of this phase includes:
•Data required is from 90 days consecutive transaction history
•Transaction data from 90 ATMs from representative types and locations
Through the Wall
Standalone
Standard Option
CDM/ CAM (Cash Accepting Machines)
Central/Eastern/western region
Busy areas (high withdrawals), city/rural area, mall/station/government
office, etc.
•Transaction data from 10 branches from representative locations
Central/Eastern/western region
Large/Small ( in terms of deposit/withdrawal volumes )
SCOPE
•Process to be reviewed include:
IT helpdesk
Monthly cash allocation planning
Reconciliation
Replenishment requests ( Planned/Unplanned )
Cash loading entries
Corrective entries
CIT reconciliation
Cash outs
Escalation procedures
Setup of cushion
Re-order point
Returns
Bank / CIT Interface
Current automation
SLAs Replenishment scheduling process
SCOPE (Cont’d )
APPROACH
APPROACH (Cont’d)
Recommended roadmap for implementing projects to address
gaps
Analysis of the current state Identified opportunities for closing gaps in current state
DELIVERABLES
Cash balances vs. optimal ending cash balances
Average amount per order vs. average amount per optimal order
Cash allocation as is compared to simulation
Availability
Comparison with industry average (and/or acceptable level as specified by Bank & SAMA)
Cost of downtime*
Float
Cost of Funds
Process rationalization
Areas for improvement in operational efficiency
Suggested Quick Wins: to optimize cash balances and processes with recommendation for a long term solution to maintain at required level
Quick wins
Long term requirements and roadmap
Actual Ending Balance vs. Optimal ending balance
The Phase I report will highlight what the bank has done in cash management over the 90 day period in
comparison to what the results would have been if the solution was in place. This will enable the Bank to
assess the measurable areas of improvement before moving into the next phase. The report with
highlight:
•Average Withdrawal amount per ATM/branch vs. Average Optimal & Actual Ending Balance
•Average ending cash balance vs., the average optimal cash ending balance ( see sample above)
Week 1 Week 2 Week3 Week 4
Track 1 Bank approval/Team
mobilization/Data Request
Data Extraction
Data Analysis
Track II Process review
Key areas for process
improvement
Final
Report
Findings and discussion with
Sponsor in Bank
TIMING
About FANERA A Cyprus-based company that provides business & technology services to financial
institutions in CEMEA
Our team includes a number of bi-lingual professional bankers and IT professionals with
experience at international and regional banks combining industry best practices with local
and regional culture and approach to assure success in all related initiatives.
Our approach to consulting is practical. We provide simple, implementable solutions and
participate actively in implementing our recommendations to assure maximum value for our
clients.
FANERA’s Services deliver direct impact on business improvement and ROI realization by
matching business targets with best-of-fit IT solutions.
Our services include:
Cash Optimization
Cards and payment systems
Mobile Payments and Remittances
Customer Experience Management
ATM/POS
BPR
Channel Optimization
Capability Assessment
Sales Acceleration
Cost Management
Cyprus-Headquarters
1, Poseidonos Street,
LEDRA BUSINESS CENTRE,
2406, Egkomi, Nicosia,
Cyprus
Athens, Greece
44 Kousianosfschi
Neo Psychiko
Athens 11515
P +30 690 9542288
Amman, Jordan
8th Circle Business Plaza
P.O. Box 140359
Amman 11814
P+962 79 6644424
FANERA Offices