3 Ways Retailers Could Turn Their Cash Management into a Profit Center
Cash management is getting expensive. Equipment, labor, transit, bank fees, provisional credit…it’s a cost center that eats into retail revenue. Fortunately, there are new products and services, like the BANK IN A BOX system, that can help retailers convert their costly cash management systems from a money pit into a profit center.
Here are three ways upgrading your cash management can become something more.
You can recover cash management costs?
With traditional cash management systems, like brown-bagging or smart safes, money taken in just sits in the safe or register until it heads to the bank. Even the standard back office or under-counter cash recycler only cycles cash back to the registers for change.
But what if the store’s cash revenue could get to the bank digitally – the next day – while the physical cash gets recycled back into other cash-based transactions?
Enter BANK IN A BOX. This advanced program provides all of the benefits of a standard smart safe and cash recycler, including store deposits and register funds. But, rather than money sitting around, cash transactions are recorded in real-time and money is recycled out to store customers using the machine for ATM and other cash-based transactions. And store revenues are direct-deposited daily to the business bank account – where they can start earning interest and funding company growth.
It’s not just bank interest pulling in more money, either. The business pulls in revenues from ATM transactions a broad range of additional cash-based services. All of this revenue significantly offsets the costs of the equipment, software, and security – with the possibility of making enough to take that “red” cash management line on the books into the “black”.
How does a Cash Management system bring more value to your retail customers?
Quick! List every deposit-taking ATM you can think of! They’re all at banks or credit unions, aren’t they? So now you have this cash and you have to make a trip to a bank if you want to put it in your account to do almost anything – pay bills, top up your mobile phone, add money to a prepaid card, etc.
If you don’t have a bank account, you have to physically visit your service provider to hand over the cash. It’s all so incredibly inconvenient.
But wait…now your favorite convenience store or retailer has this machine that lets you do all of the things without going to the bank, heading up to the Verizon store, or going anywhere else? You just saved a gallon in gas – time to treat yourself!
But it’s not just the convenience of location, there are additional services a dual cash management/customer financial services system can offer that are hard to find anywhere else. Things like the ability to dispense money in up to six denominations, cryptocurrency, dynamic currency conversion, and integrations with a multitude of vendor applications.
Potential partnerships can boost foot traffic and revenues.
ATMs have long offered the benefits of branding and partnerships with financial institutions. Accepting cash from consumers makes your store locations more appealing for bank or credit union partners by helping them meet their deposit-taking requirements. This is especially helpful for the growing number of digital-only banks that lack a physical branch to accept cash.
But a system like BANK IN THE BOX, leveraging a fully flexible back-end system, can take partnership opportunities into a new realm, including fintechs, community services, and much more. Think person-2-person payment applications, local utility programs, loan businesses, online retailers, or lottery.
And application partners include your locations on their locators, advertising, and outreach to their customers – helping to drive foot traffic and transactions.
Cash management costs can add up fast. But now they don’t have to. Innovative technology is helping retailers offset their costs by reducing time to the bank, offering revenue-generating services, and providing partnerships and value that drive in-store traffic. So now the real question is, why would anyone settle for less?