Case Study Summary

A large US Bank operating in multiple states with cash holdings excess of three quarters of a billion dollars needed to better grasp the operational issues affecting the currency inventory levels and associated cost.

The Client

Top 20 US Bank with a substantial business focused on cash-based treasury products.

THE CHALLENGE

With the continued increase and expansion in currency-based treasury products, the Bank needed to better manage the usage and cost of currency between the various lines of business while addressing the unique needs of the users. The increased use of teller cash recyclers and remote capture safes was creating different usage patterns for cash that need cross-departmental analysis.

THE SOLUTION

DIG completed an in-depth data analysis of the Bank's currency usage for ATMs, Branches, Cash Vaults - both internal and external. We also performed a peer benchmark analysis of the Bank’s currency levels. Choosing appropriate peers for benchmarking is always difficult given the regional, product, and distribution variables embedded with each institution, however it proved critical in measuring performance.

THE RESULTS

We recommended policy and process changes that would decrease currency holdings by $75 to $140 million and net annual savings of $4 to $7 million annually for other non-interest earning programs.  With the proposed enterprise-wide currency strategy, DIG outlined infrastructure to define accountability, generate monthly reporting, and monitor performance, in the form of a 4-step program.