News

Chinese FI aims to take ATM cash management savings network-wide

After saving 20 percent on cash management costs in a limited pilot, ICBC Zhongshan is rolling out NCR Aptra OptiCash to its entire 600-unit network.

August 24, 2015

NCR Corp. and the Industrial and Commercial Bank of China Zhongshan Branch have expanded their agreement covering NCR Aptra OptiCash software. According to a press release, ICBC Zhongshan will begin using the platform across its entire network of 600 ATMs.

ICBC Zhongshan launched a pilot of the cloud-based OptiCash service platform across 200 off-site ATMs in January, and by April had realized more than 20 percent year-over-year cost savings on cash management services with high ATM availability, the release said.

Before adopting NCR cash management solutions, ICBC Zhongshan relied heavily on short-term data forecasts and the experiences of certain staff members to manage cash and schedule ATM replenishment.

NCR Aptra OptiCash forecasts individual requirements for each cashpoint in the network, analyzing data directly from the ATM or existing infrastructure sources in order to generate a replenishment strategy for every cashpoint, taking into account cost factors, servicing constraints and capacities.

"China is a country with intensive cash in circulation and banks are bearing a very high cost in cash management," said Gary Miao, president of financial services for NCR Greater China. "In view of the interest rate liberation, banks in China have to transform the traditional manual approach of cash management to improve operational efficiency. ... It is imperative for financial institutions to understand the value and cost efficiency that an effective cash management strategy brings."

According to the ATM Industry Association, cash management accounts for nearly 30 percent of an ATM's annual expenses. The association also estimates that effective cash management strategies can save a financial institution from $3,000 to $10,000 a year within a branch.