ABOUT THE CUSTOMER
Major Australian Bank with more than 900+ branches across Australia, New Zealand and the world.
As part of their dedication to continuous improvement, a major Australian bank faced the ongoing challenge of increasing efficiency and staying ahead of the trends, to improve service delivery across their entire branch and ATM networks, along with reducing cost.
One of the keys to this is for Armaguard to provide more efficient and optimised servicing with branch and ATM cash management at a reduced cost.
Armaguard submitted a RFP proposal to the bank in 2015 that encompassed a complete cash, ATM and Branch management solution. This RFP response was successful for Armaguard and utilising its currency management and vast footprint, Armaguard was able to manage the bank’s ATM services more effectively: reducing ATM services, rebanks and cash-outs providing savings to the bank.
The first part of the complete solution was Armaguard Vault Management.
Cash traders use Armaguard’s in-house system ARM-Vault to forecast cash levels at all Armaguard depots. The ARM-Vault system is heavily integrated with Armaguard’s Vault Management System (VMS) that is used to manage the physical packing, processing and transportation of cash. ARM-Vault enables analysts to view forecasts up to 20 days in advance which allows traders to be pro-active and make decisions to prevent cash shortages and optimise cash holdings in the most efficient and effective way.
The second key part of the solution was Armaguard ATM and Branch Cash Management. As the cash traders actively manage the bank’s vault requirements, the Armaguard ATM and Branch cash management team similarly manage the bank’s ATM and branch cash management requirements.
Integrated cash management software is used to manage bank branch orders, clearances and cash holding as well as forecasting the ATM cash requirements for the bank’s ATM network.
Since taking over the bank’s branch and ATM cash management in April 2017, Armaguard has reduced the bank’s branch cash holdings by 10%. The ATM re-bank percentage has reduced by 5% from 22% to 17%. This reduction in re-banks has not impacted the cash-out downtime, which remains consistently low at 0.06% of the network, well below the SLA of 0.10%.By introducing Just-in-time (JIT) variable scheduling servicing to most of the bank’s ATMs, Armaguard has overachieved the guaranteed ATM servicing cost savings. Armaguard guaranteed an annual saving of $1.4m in ATM service costs compared to the baseline rates of 2015.
In the first 12 months of cash management, Armaguard has exceeded our own guaranteed saving by $270k, resulting in a total of $1.67m p.a.