Cash ManagementFrancis M. TalloChannel Management PreSales

Today’s topics

The business case

Why sell Cash Management?

Customer use cases

Needs to:• Modernize processes

• Introduce technology

• Optimize costs

Inefficient cash distribution

NEW BANKNOTES DEPOSIT WITHDRAWAL

Opportunities to save

#1

Cost of Cash

#2Transaction Processing

#3Device

Maintenance

Why sell Cash Management?(You can select more than one option)

POLL OPEN

1. The high cost of cash is a major predicament for banks and financial institutions.

78.57%

2. Manual cash processes are hindering growth, scalability, and efficiency.64.29%

3. There is virtually no competing product in the SEA market.0%

4. There is a need to improve and innovate customer experience.50%

Managing cash is much more

FUTUREEVENTS HISTORY DEMAND

FORECAST

Anticipated demand is generated from historical data & future events

1

ORDER

Balancing competing costs gives a cost optimized order schedule2

#1 Quantifiable savings

ATM

SAVINGS

VAULT

SAVINGS

STAFF

TIME

$1000 per ATMper Year

$120K-$500K per Vaultper Year

Up to 15% reduction in

time

Up to 90% reduction in

cash outs

CASH

OUTSCASH STOCK

Reduce cash holdings by

up to 30%

BRANCH

SAVINGS

$2000 per Branch

per Year

#2 Supports all stakeholders

Channel

OptiCash OptiNet OptiVault

@Branch Vault Logistics

Cash forecasting & cost optimizing of the retail network

Advanced device & multi denomination support

200+ configurable parameters

Centralized & decentralized cash management

Dynamic scheduling of branch & cash devices

Branch interactive application

Denomination & quality based forecasting & optimizing

Dynamic scheduling between cash supply centers & the retail network

Vault inventory balancing

Validation & cost control of CITs

CIT route management & optimization

Carrier web interface

Interactive Analytics & Reporting

Logistics

#3 Integrated channel view

Branches ATMs

ConsumersCommercial Customers

RecyclersBusinesses

Core Banking Applications

General LedgerOther systems

Cash Operations

Branch staff

Systems Management

XFS Cash/Item Counts

Cash Management

Intra-day data

Hosted Services

#4 Deployment options

Managed Services

Customer commits the business to an SLA

Customer owns business & the infrastructure

Customer owns business NOT the infrastructure

License SaaS

Managed On-Premise

#5 25+ years of experience

Launched Branch add-

on to Cash Management

Launched OptiTransport for Route & network optimization

Pulse Banking for Cash Smartphone dashboard

Launched OptiVaultVault / Cash Centre optimization software

Migration to Web-Based J2ee architecture

Vault Sorters & Teller Verification

Launched OptiCash add-on of Virtual Analyst

Advanced Device support

LaunchedInvoice Validation

Launched Operational Control enhancements

Launched OptiCashFirst deployment of Cashpoint optimization software

1992 2001

Central Bank Note Circulation

(NCS)

2003 2005 2011201020092008

Enhancements to support

Integrated Channel

Management

Intra-day totals

2013

LaunchedCiT interface & portal:

CarrierWeb &real-time Vault Balance inventory view

Enhanced recycler support

2014 20152002 2007 2016

Further enhancements to Advanced Devices

User selectable languages

+

SW

Ro

ad

ma

p

OptiCash OptiVault Logistics portfolio

OptiNet

2017

Expanding to Retail

Cash Management

Information is available 24/7

Maintenance Transaction Cash Management Location

Number of open tickets by device

Hours of “unavailability” Failure rates Bad actors Common part failure

Cash out frequency Denomination demand Replenishment costs Number of deposit &

withdrawals Total recycled notes

ROI by location & demographics

Seasonal & event driven changes

Demand driven by unforeseen events, i.e. weather

Number & type of failed transactions (Trx)

Hourly performance by Trx

Total TrX duration by type Most common TrX Failure reason codes

How do we sell Cash Management?(You can select more than one option)

POLL OPEN

1. Sit down and discuss the customer's requirements.33.33%

2. Immediately perform a proof-of-concept and charge the customer some fee.

16.67%

3. Arrange a solution demo in accord with the customer's desired workflow.

16.67%

4. Do a data trial and show results no matter how bad the provided data is.

33.33%

The sales process

Be more involved

Costs

Actual Deliveries & Returns

Recommended Deliveries & Returns

Before & After Modelling

History Events Contracts

Daily Withdrawals & Deposits

Historical data, costs and contractual data Anticipate

withdrawals

Balance competing costs

InputsOutputs

NCR will produce a summary report. An analysis of costs for Balance (holding), Carrier and Dead Money. Usually takes 2-3 weeks from start of project.

NCR DeliverablesNCR Modelling / simulation analysis

Historical data is imported to generate forecast and baseline cost model. Ensure that the data is consistent and events are properly identified.

Retroactive recommendation processes run to simulate operational timeline. Baseline vs. Model savings is measured.

As our partner, project management is crucial in closing deals!A positive data trial result shortens the sales process – so, how can you help?

AEON - ThailandValue in low interest rate counties

• Inability to forecast cash for RECYCLERS • Dead money & transport costs extremely high• Customer was ordering cash based on experience

with a high staff turnover• Needed capability to support complex ATMs &

business model

FI Issue • NCR spent much on-site time to work with the

customer and build a trusted partnership• Demonstrated abilities to support 360° cash

management solution covering all aspects of retail & wholesale banking

• OptiSuite: OptiCash, OptiNet

Solution

• DataOne in country competitor did not have same relationship with customer• Integrated and complete NCR solution for advanced devices and cash management• Setting expectations up front with a detailed Data Trial leading to proven results during PoC• Local professional services solution expert provided unlimited support & guidance throughout project• Demonstrated tangible savings at 24%

• Estate size : 15,600 cashpoints (11,8K ATMs; 3.8K Branches)

Bringing Value

Balance24%

Carrier68%

Dead money8%

24%Total Cost Reduction

BCA - Indonesia

• Bank was still processing manually despite implementation of FISERV’s iCom

• Costs from CiT partner to hold, process, & managing cash, were excessive

• Prohibitive amount of manual labour – lacking system credibility

• No control over costs & inventory

FI Issue • Complete order automation process from wholesale cash to

Indonesia’s Central Bank and out to every cash order & collection manifest

• Resource relief allowed re-focus on planning & managing network changes

• Full support of advanced devices, Vaults, Branches• Reduce Cash-outs by 59% • OptiSuite: OptiCash, OptiNet, OptiVault

Solution

• Ability to delivery implementation and show forecasting results in short timeframe• Free from the prohibitive workload of manually planning and ordering cash and correcting iCom’s forecasts, cash operations

staff can now focus on planning and managing network changes, resolving exception conditions and utilizing the enhanced management information to better manage their CIT vendor SLAs.

• Integrated and complete NCR solution for advanced devices and cash management

• Estate size : 15,590 with planned expansion to 25K ATMs, 1,062 Branches, and 55 outsources vaults

Bringing Value

Picking up where others fell short

Partnerships built on “cash”

Thank You!Questions?

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What’s Next?

Break till 3:50pm- Financial Services Partners return to Riverside Ballroom