SmartCash Currency Processing

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1 SmartCash Currency Processing A Business Case for Burroughs Cash Automation SmartCash solutions produce gains of over 50 percent in teller efficiency. SmartCash empowers tellers to build deeper customer relationships by shifting focus from transactions to the client. SmartCash reduces branch cash inventory by upwards of 25 percent. SmartCash prevents exposed cash and ensures enhanced security. SmartCash is supported by a coast-to-coast maintenance organization. The Burroughs SmartCash family of teller cash dispensers and teller cash recyclers automates the cash handling process, thereby correcting the negative impact of cash handling in the retail branch channel and mitigating the negative effects on client relationships caused by this manual process. Cash dispensers accurately dispense cash and reduce the need for large amounts of cash in teller drawers. As a result, teller speed and accuracy are significantly improved. Currency recyclers take the automation process a powerful step further they automatically and accurately count currency, verify authenticity, and store it in a secure safe right at the point of transaction. By later dispensing the same cash to other customers, businesses can cut overall cash requirements in branches to dramatically save money on sorting and shipping currency and also to reduce security costs. The SmartCash solution is designed to specifically target the challenges of institutions handling currency in a retail branch channel. SmartCash offers both efficiency and opportunity gains.

2 Teller Efficiency The typical teller spends at least two hours per day counting cash. But with the SmartCash solution, only mutilated notes and unfit currency requires counting. By eliminating the need for manual counting, SmartCash allows users to reduce labor requirements through increased productivity. Now, instead of large, full and part-time staffing levels at branches, fewer SmartCash enabled tellers can staff a branch during peak hours or throughout schedules that are otherwise hard to accommodate. Table 1. Example Teller Productivity Improvements. Teller Activity Cash In Transaction ($150, 50 notes) Manual Process (Time in sec.) SmartCash Enabled Process (Time in sec.) 60 seconds 10 seconds Tellers count cash throughout the day during a variety of procedures. These procedures include accepting and distributing cash to customers during transactions, processing vault buys and sells, and balancing at the end of a shift or prior to leaving the branch during a break. With the SmartCash solution, tellers become over 50 percent more effective when handling cash in their day-to-day activities as illustrated in Table 1. Cash Out Transaction ($150, 50 notes) Vault Buy ($500, 100 notes) 50 seconds 6.25 seconds 2 employees, 180 seconds each 1 employee, 20 seconds In addition to the timesaving benefits realized by automating manual teller counting functions, efficiency is improved by achieving greater accuracy. SmartCash eliminates the human element to ensure an accurate and reliable journal of every cash transaction processed through its marketleading note counting and verification technology. Financial institutions must ask this question: If tellers were not focused on counting cash, what could they focus on? Vault Sell ($500, 100 notes) Cashbox Balancing ($10,000, 750 notes) 2 employees, 180 seconds each 15 minutes (teller in balance) 1 employee, 12.5 seconds 30 seconds (process buy or sell) SmartCash allows users to reduce labor requirements through increased productivity. 2

3 Creating Powerful Customer Experiences Consolidation of financial institutions in the United States has led to a markedly competitive environment. To remain competitive in a market with many options, banks and credit unions must offer a variety of products and services in an environment that promotes a powerful customer experience. Thus, large organizations have adopted a sales culture that focuses on retail and encourages all employees, including tellers, at the branch level to sell additional products and services. Financial institutions seek to deepen customer relationships to help insulate against customer attrition, which historically has a negative impact on branch banking. By shifting teller focus at the point of transaction away from counting cash and toward the client, financial institutions not only have greater opportunities to cultivate customer loyalty while offering premium services, but they also save money while increasing revenue potential. The benefit of acquiring new relationships is far greater than merely retaining current customers. Better service and more personalized account solutions help customers avoid unnecessary fees thereby reducing account turnover. Additionally, the sale of new products such as home loans, auto loans, and investment accounts helps increase overall profitability. Table 2. (DDA) Acquisition and Retention Costs ($) (based on customer survey information). Financial Institution Size Tier One Tier Two Tier Three New Account Cost $115 - $130 $100 - $125 $100 - $125 Monthly Account Maintenance $15 - $40 $15 - $40 $15 - $40 Cost of Closed Accounts $50 - $75 $50 - $75 $50 - $100 Attrition Rate / (%) of Single Product Relationships 75% / 85% 70% / 85% 65% / 80% 3

4 Enhanced Security Each SmartCash currency processing device comes with a standard UL 291 safe. This means that rather than storing cash drawers in under counter steel accessible by lock and key, operational cash is housed in a steel safe rated for overnight storage of currency by Underwriters Laboratories. By housing cash centrally in an automated safe, cash exposure during branch hours is all but eliminated. Rather than exposing the contents of a cash drawer to a customer during each cash transaction, tellers rely upon the security of SmartCash to safely store the cash they need. In addition to reduced cash exposure, SmartCash comes equipped with several duress functions that promote safety during a robbery situation. By triggering a series of hot keys, tellers can engage the silent alarm through their software platform while engaging a predetermined robbery-dispense mix from the device. Similar duress capabilities exist on the door lock and door alarm to ensure that tellers can follow an easy-to-remember, repeatable process aimed at protecting staff and customers alike during a hold-up. Reduced Cash Inventory Having cash stored in a Burroughs cash dispenser or recycler allows branch staff to better judge how much cash should be sold or ordered each week. By storing cash centrally as opposed to various cash boxes, denominational cash positions as well as overall branch cash totals are readily available. This allows cash inventory to be more efficient, reducing the amount of currency housed at the branch while at the same time cutting the number of courier visits on average by 50 percent. In some cases, SmartCash technology has resulted in cash inventory equilibrium, thus entirely eliminating the need for cash shipments involving the branch. Why Burroughs? Burroughs has been an industry leader in financial systems and solutions for over 100 years. From pioneering efforts to automate check processing to today s distributed branch and merchant capture initiatives, Burroughs has provided financial service providers and organizations around the world with an array of services and products that fuel the industry. SmartCash devices are part of a total branch solution that includes Burroughs SmartSource check scanners the most advanced check scanners in the industry. 4

5 TELLER LABOR COST CALCULATION For Salaried Employees > Average Annual Salary $25,000 Common Labor Burden Costs Basis Amount Wage Base for Calculation Labor Burden FICA Regular pay to max. 7.65% $25,000 $1,913 FUTA Regular pay to max. 0.80% $7,000 $56 SUTA Regular pay to max. 2.70% $15,000 $405 Workers Comp Regular pay 14.75% $25,000 $3,688 G/L Insurance Regular pay 4.00% $25,000 $1,000 Health Lump sum per year $9,600 $25,000 $9,600 Vacation Hours per year $25,000 $1,625 Holiday Hours per year 48.0 $25,000 $650 Picnics, Parties Lump sum per year $100 $25,000 $100 Supplies Lump sum per month $10 $25,000 $120 Sick/Personal Days Hours per year 24.0 $25,000 $325 Company Meetings Hours per month 2.0 $25,000 $325 Training /Education Hours per year 40.0 $25,000 $542 Facilities Lump sum per month $100 $25,000 $1,200 Miscellaneous Lump sum per month $25 $25,000 $300 Profit Share/Pension/401k % of regular pay 6.00% $25,000 $1,500 Additional Bonus $ per year $400 $25,000 $400 Total Labor Burden $23,748 Annual Gross Wages $25,000 Annual Fully Burdened Cost $48,748 FICA Wages Limit $102,000 Labor Burden as a % of Wages 95.0% FUTA Wages Limit $7,000 Cost per Billable Hour $26.73 SUTA Wages Limit $15,000 Billable Hours 1,824 5

6 Return on Investment A Green Alternative Financial institutions that implement currency processing into their business operations drastically reduce courier visit requirements and contribute to an overall reduction in pollution caused by fossil fuels. In addition to being environmentally responsible, reducing the number of cash-in-transit visits yields better cash inventory management and reduces the cost of armored services. Unparalleled Service Expertise No one knows Burroughs currency processing devices better than our support service analysts and engineers. Thousands of customers favor Burroughs over third party vendors for greater knowledge and faster resolution of issues. Burroughs offers a flexible array of support service plans designed to maximize the efficiency of SmartCash devices. Conclusion Burroughs SmartCash solutions change the way financial institutions handle cash. By adopting technology aimed at improving teller processes, financial institutions can realize both cost savings and new revenue generation. It is easy to see why customers across the United States are choosing Burroughs to help them focus on the transactions that matter most. Burroughs offers a flexible array of support service plans designed to maximize the efficiency of SmartCash devices. 6

7 For more information about the entire line of Burroughs Products and Services visit or call BURROUGHS ( ) Burroughs is a registered trademark licensed to Burroughs, Inc. in the United States and other countries. SmartSource is a registered trademark of Burroughs, Inc. All other brands and products referenced in this document are acknowledged to be the trademarks or registered trademarks of their respective holders. Specifications are subject to change without notice Burroughs, Inc. 8/12 PS