The document discusses conducting a cash optimization analysis for a financial institution. It would involve analyzing 90 days of transaction data from 90 ATMs and 10 branches to determine current cash management levels. It would then simulate cash levels if optimized tools and processes were used. A report would compare key metrics like ending cash balances and availability to optimal levels and industry benchmarks to quantify potential improvements. This would help the bank assess benefits before a potential cash optimization solution implementation.

1. Where Business & Technology Converge
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CASH OPTIMIZATION

2. 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.

3.  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:

4.  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

5. 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

6. •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 )

7. APPROACH

8. APPROACH (Cont’d)

9. 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

10. 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)

13. 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

14. 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

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