8/12/2019 Consultancy Assignment Large Us a Commercial Bank

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CONSULTANCY ASSIGNMENTS

Business Process Re-engineering and Business Performance ImprovementClient: Large United States Commercial Bank

The Business Challenge

The need to deliver greater shareholder value, and eliminate non-essential costs, is apressure commercial banks and other cash handlers face worldwide. In the UnitedStates, considerable effort is being made to reduce non-earning assets, of which cashheld in branches, ATMs and vaults often make up a large component.

In the U.S. the introduction, and now widespread use, of retail sweeping programs hasenabled many financial institutions to reduce significantly their required reserves. Vaultcash, once held to meet reserve requirements, is now often excess to needs, and isconsidered a non-earning asset on their books.

One immediate solution is to regularly deposit surplus cash with the Central Bank, theFederal Reserve. Rules such as their Uniform Cash Access Policy (UCAP) and crossshipping and currency recirculation polices, the logistics and cost of regular securetransportation, and mounting pressure to recycle cash at the commercial level, havenecessitated a more complex and integrated approach to cash reduction initiatives.

De La Rue was engaged to assist the bank with improving its cash processingprocedures, as well as preparing the bank for the implementation of new cashprocessing hardware and software.

Our Approach

De La Rue started the assignment by conducting a detailed operational review. Usinghighly experienced consultants, familiar with commercial vault operations,De La Rue was able to review quickly the various cash handling activities. Comparisonof the operating practices between vault locations highlighted some variations inoperating practices. External reviews often enable operational differences to beidentified and can help clients establish best practice and consistent procedures acrosstheir organizations.

8/12/2019 Consultancy Assignment Large Us a Commercial Bank

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8/12/2019 Consultancy Assignment Large Us a Commercial Bank

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