Banks Can Make Money If They Save Retailers Money
Banks that service small retailers can tailor their services to significantly reduce cash management expenses for the retailer, particularly smaller mall or shopping center retailers. Saving retailers significant sums can, in turn, promote loyalty to the financial institution.
A modest increase in the bank’s fees to manage this new service will be acceptable, since any new charge will be less than the savings realized. Both bank and retailer become more profitable and efficient.
The Scenario
Instead of armored carriers picking up a retailers large daily deposit, each retail employee will instead create a smaller deposit from his or her own till when going off shift (or more frequently, if needed). Each small deposit contains at least the checks and any large bills not useful for making change. At the end of the shift or day, a final deposit may be made combining the balance of the till.
These smaller sums are deposited at the bank ATM closest to the retailer’s location in the mall. The ATM’s location, the small amount of each deposit, and normal mall and ATM security, address any security concerns.
Armored carrier services pick up the deposits from the ATM at no cost to the retailer, and the deposits are verified centrally at the normal rate per ATM deposit, plus any surcharge for the special services. The retailer may realize further savings by reducing or eliminating the need for a cash room on the store premises.
Special fee-based services banks can offer include:
By processing mall retailers’ deposits through the ATM deposit processing system and eliminating armored carrier bulk pickups at end of day, banks can greatly benefit their retail customers while improving the own fee income.
A modest increase in the bank’s fees to manage this new service will be acceptable, since any new charge will be less than the savings realized. Both bank and retailer become more profitable and efficient.
The Scenario
Instead of armored carriers picking up a retailers large daily deposit, each retail employee will instead create a smaller deposit from his or her own till when going off shift (or more frequently, if needed). Each small deposit contains at least the checks and any large bills not useful for making change. At the end of the shift or day, a final deposit may be made combining the balance of the till.
These smaller sums are deposited at the bank ATM closest to the retailer’s location in the mall. The ATM’s location, the small amount of each deposit, and normal mall and ATM security, address any security concerns.
Armored carrier services pick up the deposits from the ATM at no cost to the retailer, and the deposits are verified centrally at the normal rate per ATM deposit, plus any surcharge for the special services. The retailer may realize further savings by reducing or eliminating the need for a cash room on the store premises.
Special fee-based services banks can offer include:
- Consolidating deposit verification information into a daily sales activity report or file with daily analysis of variances by employee, auto-faxed or auto-emailed to the store or regional headquarters.
- Offering interfaces to the retailer’s host systems, including sales audit and general ledger.
- Assisting in consolidating deliveries of cash orders for many retailers in each mall, so that delivery costs for cash orders can be rationalized.
- Providing consulting assistance in all aspects of this arrangement to the retailer.
- Optical deposit envelope readers such as Postal Technologies, for improved verification efficiency, with interface to deposit verification system.
- Interfaces from verification system to ATM controller and DDA.
- Ability to process and properly credit all contents of cash register, including as needed foreign currency, food stamps, checks, credits, coupons, traveler’s checks, etc.
- Use of high speed scanners and sorters to speed the processing of each deposit.
By processing mall retailers’ deposits through the ATM deposit processing system and eliminating armored carrier bulk pickups at end of day, banks can greatly benefit their retail customers while improving the own fee income.