To ensure enough cash for business, one needs to purchase the money from the primary source in the state (Croatian National Bank, for example). However, cash is expensive because of the connected costs that include transport, insurance and costs of internal manipulation. Indirectly, this also includes the loss of profit from short-term loan because the liquidity is actually being immobilized in vaults. The money should be rationally managed because good planning and the efficient use of the money supplies are prerequisites for achieving savings in the banking industry.

In face of these challenges, COMBIS offers Cash Management solution, which serves as a tool for managing money at different points of access, such as ATM’s, bank branches and vaults.

The system is used for optimal distribution and transportation of cash, which includes: 

• servicing ATMs,
• cash forecasting and planning of the optimal amounts of cash in bank branches
• forecasting the outstanding cash orders.

By using the Cash Management solution, the need for cash is reduced along with the cost of transportation and human resources, which results in concrete savings for the bank.

It is necessary to provide the optimal amount of cash on every 'Cash Point' (bank branch, ATM or vault) at minimum cost. To ensure this optimal amount, it is necessary to reduce the average level of cash in the local treasury, but at the same time, ensure that the Cash Point does not remain cashless. This is why the solution includes a system for prediction that determines when and in what amount an individual Cash Point has to be supplied.   

Minimal expanse can be achieved by reducing the number of loadings and unloadings, and by optimizing the routes when transporting the cash. That is why the solution consists of a system for optimizing transport which postpones or quickens the transport and connects the transport of all Cash Points that are geographically near.   

COMBIS ensures the possibility of connecting the systems for prediction and transport optimization with the existing IT systems in the bank, and can also deliver the module for data analysis and simulation of prediction and transport. 

Systems by which the bank manages the cash flow are:

• front-office systems at counters and analytical applications according to the types of transactions
• general ledger
• application for treasury
• storage vault application in central, regional and local offices
  - the structure of cash is based on the material accounting
  - the sum of cash is financially recorded on the principle of analytics

Managing the channels of distribution (transactions)

• terminal-Management systems for managing ATMs and other self-service terminals
• applications for advance notice of cash requirements and for transportation orders
• reporting systems for analyzing liquidity and managing limits
  - maintaining liquidity inside the limits
  - recording transactions of customer is the source for data collection on the dynamics of demand/supply

Advanced technology solution from COMBIS is based on expert rules and allows the prediction of cash requirements in real time, for each 'Cash Point' by denomination structure, currency and with transport optimization.

Upgrade of the existing business information systems of the bank with expert system for cash management, is an advanced integration that combines all the existing components into a meaningful whole. It allows for better overview and management of grants and reduces operating costs through:

• reduction of the average amount of allocated cash,
• reduction of costs and number of transport.

Advantages of ComCash solutions:

• the user is able to perform advanced methods of analysis of cash movements,
• timely issuance of orders for transport
• connects and automates all the tasks related to the management of grants and surpluses,
• optimizes the cost of transportation and of human resources,
• the user has the possibility to update rules and perform simulations of the behavior if business rules and limits change.

Reference

• Zagrebačka banka d.d.