Banks & Credit Unions can offer Cash Management to their Commercial Clients

    Oct 11 2021

    Topics: Creative Banking Ideas

    Banks & Credit Unions can offer Cash Management to their Commercial Clients 

    Most financial institutions offer a range of commercial products to their clientele: lines of credit, cash processing, checking, financing, leasing, consulting services. The Big 12 (more than 1,000 branches) have begun to offer another product, cash management systems (“CMS”), which are made up of Hardware (cash recyclers and smart safes), Software, and Services (servicing of the Hardware and supporting the Software). To date only the Big 12 are doing this – and it’s proving to be very lucrative. 

    This doesn’t have to be the case, however. Any financial institutional can offer CMS to their commercial clients, and that includes credit unions and community banks. Why let the Big 12 control CMS? Any financial institution can get in on this lucrative business, and bring some real value to their clients.  


    Don’t Do It Yourself – Partner 

    The Big 12 have invested millions to create their own CMS offerings. That is probably not cost-effective for most financial institutions. Better to partner with a player in the CMS industry – CashTech Currency Products fits that bill. CashTech has the relationships with all the players needed to present a competitive CMS offering. These partners include the OEMs, software providers, hardware service providers, leasing companies, Cash-In-Transit (armored car) cash pickup providers, and consumable product lines. You’ll need all this – so why do it yourself.  

    CashTech offers a white-label option, as well. The client buys the CMS service from you, and CashTech delivers the offering. 


    The Value Prop 

    So what’s in it for you? Fair question. The answer is a great deal: 

    • Offer a new, unique service to your commercial clients. 
    • Create a new revenue channel (more about that below). 
    • Increase the connectivity with your clients. 
    • Reduce the service burden at the branch level (CMS means your clients are more efficient with their cash). 
    • Lower cash processing costs because your clients will optimize their deposits. 

    The Revenue Model 

    Another fair question – how does a CMS offering translate into profit? Here’s how: 

    • A percentage of hardware and software sales 
    • A percentage of the CIT fees 
    • Charge a fee for accessing the CMS service 
    • Cash Processing Fees  
    • Lease the hardware to your clients 
    • Offer provisional credit to your clients (more about that below) 

    Provisional Credit and Leasing 

    Provisional credit is credit offered to retailers who use a certified CMS. The software controlling the CMS is connected to your platform, so you know the exact cash position for each retail location. Since you know the cash is secured in hardware and controlled by software, you can confidently offer credit for that cash before it is formally deposited. This can be become a significant profit center in itself – and as noted above, why let the Big 12 control it.  

    Most retailers lease the hardware, typically for five years. Again, the leasing of the hardware is lucrative and another opportunity to bring added value and connectivity to your clients.  


    Give CashTech a call to find out more about this opportunity. The Big 12 make it tough to compete as it is. CashTech’s CMS program for Banks, Credit Unions and Community Banks levels the playing field – and it will add welcome profits to your bottom line.  

    Andrea Lombardi

    Andrea Lombardi

    Andrea joined the CashTech team upon its inception in 2003. Learning the business from the ground up, she now utilizes her expertise in account management, planning, and negotiation while managing the daily operations of CashTech’s sales, marketing, and logistics departments. Andrea holds a bachelor’s degree from the University of Western Ontario. She enjoys travelling and has a passion for personal fitness, including obtaining her kettlebell certification. Andrea lives in Toronto with her husband and two young sons.

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