By Beverly Shwarzer, President
Technology is in place for a reason: to unlock greater efficiencies and eliminate manual processes from every aspect of your daily life and professional functions. The past couple of decades have lead to major transformations in digital technology, especially within the business world, where efficient and user-friendly experiences have become the new norm, not the exception.
This cannot be said for commercial banking operations, specifically for cash services, where customer deposits are written on paper, calculated manually, and logged with minimal digital backup. The existing processes create costly errors, missing deposits, and labor-intensive steps for banks and for their commercial customers. Moreover, banks and CIT providers have invested in their own siloed technology that has made it difficult to track deposits, thus creating a fragmented cash supply process for all parties involved. Cash handling remains important to financial institutions, as cash continues to be the most frequently used consumer payment method in the US.
While the evolution of the banking industry may be underway in the electronic payment space, banks need to rapidly embrace technology for their cash services offerings in order to enhance operational efficiency and keep up with their customers’ demands for more modern services. Here’s why:
Creating a Competitive Advantage
Commercial banks that aren’t enhancing their inefficient, manual processes for cash services are at risk of being left behind. Their competitors and their own customers are all embracing and investing in technology. The “Millennial” generation accounts for roughly 40% of the working-age population and they’ve grown up using mobile technology to expedite and optimize all aspects of their personal and professional lives with data accessible at their fingertips. Today’s commercial banking customer is fully aware of the power of digital automation and they expect it to be incorporated throughout their banking experiences for real-time cash information and analysis. If banks don’t offer up-to-date services, companies will be more inclined to centralize their services with existing banks or move to new banks.
Investing in the right technology and digital procedures will help banks significantly enhance the customer experience. The right technology will also help serve as a differentiator in acquiring new customers and retaining existing ones.
Partnering with Fintechs
Partnerships with financial technology (fintech) companies offer banks a fast and simple way to develop and launch innovative services without having to revamp their costly IT systems. Investing in the right technology will provide long-term cost savings by eliminating many of the inefficiencies and time-sensitive tasks associated with banks’ existing cash handling processes.
Banks already have the essential assets in place to seamlessly integrate with fintech companies. They use application program interfaces (APIs) and barcode technology for many of their everyday operations and can easily leverage this technology to exchange information and offer third party fintech services through their branded web portals. This provides banks with a valuable opportunity to enhance their product offerings and increase brand loyalty, all while avoiding the costs and time associated with IT development.
Banks need to conduct their research and invest in the right fintech partnerships that help them create better, faster, and cost-effective services.
SureTraxx Cash Management Systems plays a leading role in the digital transformation of the financial and cash handling industry. Instead of replacing major components of the bank’s operations, we provide simple and agnostic digital processes without the need to invest in expensive software or updates to legacy infrastructure. Please contact our team of experts, if you would like to schedule a consultation to see how we can enhance your cash management services.