Outsourcing vs. insourcing processing commercial deposits
Banks and Credit Unions Cut Costs by Insourcing Currency Processing with Multi-Pocket Money Sorters
In the past decade, financial institutions outsourced their commercial deposit and ATM processing as a way of standardizing business processes, leveraging outside expertise and saving costs. Most recently, however, they are bringing it back in-house. Let's take a look at why that is.
By bringing currency processing back-in-house, banks and credit unions can avoid paying high transportation and processing fees. With the armoured transport market dominated by a few key companies, prices are projected to increase even more over the next few years.
Sending cash off-site to be processed creates an inventory need at the branch. When funds are tied up in transport, they are unavailable so banks or credit unions need to issue cash orders or borrow money from other banks to continue with other operations, including loans. With deposits done on-site, deposits can be quickly processed and paid out as change orders or used to replenish ATMs.
Once the decision to insource currency processing has been made, the next step is to determine the right technology. Advances in today's currency processing equipment include multi-pocket currency scanners and sorters like the JetScan i400, that are faster, easier to use and more customisable than ever before, make it possible—and economical—to process cash-in-house.
In today's age of branch transformation, identifying opportunities for cost savings and productivity gains is top of mind. Insourcing currency processing can open to the door to keeping cash—and profits—inside your branch.
October 25, 2018