Banking: controlled outsourcing cash operations

Insourcing or outsourcing Cash Centre operations
In different markets, commercial banks and central banks (or reserve banks) are looking for the most efficient solutions for the distribution of cash. These solutions often result in partly or completely outsourcing Cash Centre activities. To ensure that sufficient cash of a predefined minimum quality is available in the market, when outsourcing their activities, different central banks have defined strict cash circulation rules and regulations. When commercial banks outsource their Cash Centre activities they require strict reconciliations and reporting from professional Cash Centre Operators. Ivolvement has experience with both types of outsourcing projects.

Cash recycling schemes
Traditionally, central banks control the quality and quantity of cash within a national market. To make the cash logistic supply chain shorter, different central banks have outsourced the recycling and quality control of cash under strict regulations to commercial banks and professional Cash Centre operators.

Note Held to Order (NHTO) schemes
In certain countries commercial banks and Cash Centre operators are allowed to store cash on behalf of the national bank. Where the storage of cash is outsourced central banks have implemented NHTO schemes. In different countries around the world central banks are implementing cash recycling regulations, whereby each National Bank has its own methodology and ideas.

Our experience
Ivolvement has extensive experience with different types of cash recycling operations and NHTO methodologies. For the designing and implementation of these schemes we are the partner for central banks, commercial banks and professional Cash Centre operators. Ivolvement actively assists you with developing and implementing effective and efficient cash recycling schemes whereby local circumstances and legislation play an important role in the process design.

Cash handling and commercial banks
In the past, commercial banks owned their own Cash in Transit, ATM and Cash Centre operations. Now most commercial banks have outsourced their Cash in Transit operations whereby the commercial bank or an outsourcing partner controls the transport planning and scheduling requirements. Some banks have also outsourced their Cash Centre operations to Cash in Transit or specialised Cash Centre operators.

Outsourcing ATM management tasks
When commercial banks have outsourced their transport and processing requirements, the physical handling of cash for off-premise ATMs is mostly outsourced in the same time. The cash management of these ATMs mostly remains with the commercial banks. Together with partners Ivolvement can also assist in further outsourcing ATM management task, like forecasting and optimisation, maintenance aspects and such.

Cash logistics
Even when processes are outsourced, commercial banks frequently find the logistics around cash to be unsafe and expensive. With our extensive experience we are putting high quality and efficient operational and control processes in place at both the commercial banks and outsourcing partners. Key factors for the required improvements are:
• Improving Effectiveness
• Improving Efficiency
• Improving Controllability
• Improving Security