Enabled analytics to optimize cash planning & usage for a fintech
The Client is a South African company that has partnered with the Reserve Bank to collect all new banknotes and coins for distribution.
60% reduction in cash planning costs and penalties through data analytics
Challenge
- The client was facing disorderly and manual handoffs of cash. This created inefficiencies in collection & delivery timelines leading to cost implications
- There was no consolidated view of cash across ATMs and branches. Hence the management was not able to optimize the cash rotation
- The client wanted to increase the customer base by increasing cash capacity in branches
Solution
- Defined a process for cash handling (collection and delivery) across branches and enabled the IT systems to utilize the data collected
- Architected a data lake to create a single source of truth for cash positions across the bank branches
- Developed multiple reports & dashboards like cashflow reports, daily cash held overs, penalty costs, ODP firming to enable the leadership (Branch Managers, Area Managers, POM, and Central) to make proactive decisions related to cash and drive the HCV strategically
- Developed branch-specific cash position reports to enable branch managers to use cash efficiently and sign new customers
Benefits
Relevance
The real-time cash position data enabled the client to optimize cash planning and make the operations more efficient
Resilience
The datalake developed was able to scale up for multiple branches and provide cash related insights at all levels of management
ROI
The client was able to reduce cash planning costs by 30%-60% and at the same time reduce the penalty costs of delayed cash payments by 50%-80%