By Barry Ellison, Director of Digital Marketing
Over the last decade, we have seen a steady and progressive adoption of digitalization and automation in the financial services industry. However, the push towards adopting new solutions has been predominately on the consumer side, and much less on the commercial side. More specifically, when it comes to cash management for businesses, there is a remarkable slower pace of adoption for new technology.
This is important to highlight from an end-user experience because we expect the same level of service as both a consumer and commercial user of banking services; ease of use. For retailers, there are no exceptions; cash handling and deposits fall among the daily routines of managing a business that create pain points throughout the cash handling journey. We’ve outlined three of the most common impediments below:
Pain Point # 1 – Wasted Time From Manual Intervention
For retailers using traditional paper deposit slips and procedures, time means money. Razor-thin operating margins place an enormous amount of pressure on retailers to maximize efficiencies in store operations. In fact, a research report by the IHL Group shows that the real cost of cash handling for retailers is between 4.7% and 15.3%. That could mean significant but unnecessary costs for business owners.
Pain Point # 2 – Lack of Clear Logging, Reporting and Visibility
Another important point that causes some discomfort for retailers is that they are faced with making business decisions on bad data. Without a clear view on the flow of funds and deposits, decisions can only be made on assumptions.
According to Forbes, businesses need information and reporting based on the three “R’s”; reliable, readable, and regular. In other words, is the data trustworthy, easy to understand and up-to-date.
Inaccurate data leads to workarounds, more manual entry, and the addition of ad-hoc data, finally leading to a complete lack of visibility into the health of the business.
Pain point # 3 – Potential Theft and Errors in Cash Handling
Cash management affects the entire business and the potential threats to the flow of funds should not be taken lightly. Poor cash management makes a business a prime target for internal theft and although we may think it’s unavoidable, it can certainly be minimized considerably. In fact, a report by the Loss Prevention Media Group indicated that employee theft is far more common than customer theft.
Honest errors in cash handling are also common. Mistakes happen because of human error, which makes the reconciliation of funds difficult, costly and time consuming. However, technology and automation can significantly increase cash handling accuracy and prevent theft.
Opportunities For Change…
With a lack of visibility on operational procedures, it proves difficult to build a business case for change. However, there are opportunities today, where an increasing number of financial technology companies (fintech) and enterprise software providers can help evolve the ecosystem by creating user-centered services and simpler and more convenient solutions for banks and their clients.
How SureTraxx DT Can Help
With SureTraxx DT, you can manage cash deposits at every stage and at all levels across the organization. This is possible with the use of digital deposit tickets with barcode technology that eliminates the need for manual, handwritten notes. You can follow the real-time flow of funds online with the precise visibility and detail of each deposit due to the richness of the reporting capabilities; from data capture, storage and exchange1. This allows the end-user to quickly identify errors and potential employee tampering. It will also provide a clear view on additional banking fees associated with the mismanagement of funds.
Through digitalization and automation SureTraxx DT simplifies cash handling, which saves you time and money. Also, because the SureTraxx DT program is system agnostic, so there is no need for costly IT investments or integration into current legacy systems.
Want to take the next step? Do you want to spend more time on your business rather than in your business? Please contact our team of experts to schedule a free consultation and see how we can enhance your operations with SureTraxx DT.
1Retailers can use SureTraxx DT without their bank or armored carrier being integrated with the program. Retailers can expect to receive many significant benefits regardless of their partners’ involvement. However, for retailers to receive status updates along the supply chain, their bank must be integrated with SureTraxx DT.