ATM Cash Management: Should I Outsource?

As the institutionalized banking industry continues to rely heavily on outsourced cash management services, Independent ATM Deployers (IADs) are taking note. 

While keeping overhead low is important to all small business owners, selecting reliable third parties to handle more risky, mundane, or tedious tasks may prove beneficial.  It is important to weigh the costs and assess the rewards while determining if outsourced help would benefit your bottom line.

While outsourcing a cash management service is not a necessity, there are many reasons why transitioning to this model helps an IAD.

Outsourcing Cash Management Allows You to Keep More Cash on Hand

When IADs utilize their own cash to stock their ATM fleet, they are tying up business capital that could otherwise be allocated elsewhere.  This limits growth potential. By using a vault cash provider, IADs may be able to free up liquid capital and expand business more quickly.

Cash Management Providers Can Help Maintain Optimal Cash Levels

If even just one ATM in your fleet runs out of cash, your ability to make any profit from that machine dies. An ATM must be operating in order to bring in profits and keep customers.  A cash management service will ensure that your machines are stocked and will typically run forecasting to ensure that each machine remains operable until the next cash refill. Proper forecasting reduces costly trips to replenish ATMs, and improves customer satisfaction at your terminals.

Cash Management Services Can Manage Armored Carriers

Outsourcing armored carrier management to a third-party provider can help to ensure a reliable and safe cash delivery.  Many armored carrier companies also provide data to help improve forecasting

Outsourcing Claims Management Can Save You in the Long Run

Researching and verifying every ATM claim can be time-consuming for small business owners.  Outsourcing this more drawn-out task can free up time to do other work like researching placement for an expanded fleet of ATMs, or better protecting your terminals.

Ultimately, like any outsourcing, determining if a cash management service is right for you is determined by a number of factors.  Most importantly, consider how hiring help will affect your day-to-day ability to profit from your ATM business.