Writer Safeguard

1. India’s Top Banks 2015 Writer Safeguard Suneel Aiyar CEO in optimization of cash in circulation. Many initiatives have been taken by the banks to reduce the logistic cost and it has reached a stage where further reduction seems difficult rather with the expanding network of banks and ATMs into Tier 3, Tier 4 cities and increasingly putting pressure on the costing. However in the cash optimization space, slightwork has happened in driving efficiencies through algorithm based softwares and just in time inventory planning for supply of cash to branches and ATM. WSG offers a suite of services which includes end to end cash forecasting ,optimization and creating a logistical network to drive Just in time inventories. We propose to optimize and bring in efficiencies in Cash in Circulation ranging between 20 - 40% through our uniquely designed customized solution. What measures do you expect should be undertaken by RBI to strengthen the Cash Management industry? Kindly Safeguard’s key achievements in the recent past. brief us about Writer With the increasing incidents of looting at ATM and hijacking of cash vans, Cash Management companies identified the need to have regulation for the industry. In view of the same, WSG along with other major Cash management companies initiated forming an Association – Cash Logistics Association (CLA) with the objective of discussing relevant issues with authorities. CLA did a detailed study and identified the reasons causing certain issues like lack of prescribed minimum eligibility standards for the existing Cash companies and the new entrants, delay in issuance of arm license which resulted in cash transportation without armed security guards, no direct agreement between banks and the CRA’s, delayed dispute resolution and payment settlements. Basis on the study conducted a detailed list of recommendations were presented to RBI to enable them to issue guidelines to the bank while outsourcing their cash related activities. We firmly believe that issuance of certain guidelines will help the industry to have standardized operation in a safe manner. This would also ensure security for the people who handle cash. It will benefit all the parties involved, i.e. Cash Management industry, Banks and their deposits as the cash in transit is public money. Over the past few years, we have made a significant progress in expanding our portfolio of products and services. We have grown by almost 50% in managing the ATMs and by about 40% in the Retail Cash Management as compared to previous year. We are half way through our ATM deployments forend to end deployment and management of the ATM network for a leading public sector bank thereby moving up the value chain in the payment space. We have also made in-roads in operationalizing cash processing centers for some of our partner banks in the private sector. Apart from this, we have invested heavily on the technology and network expansion projects over the past year. Presentlywe have a significantly larger footprint across the country with presence in over 800 locations in comparison to 350 locations couple of years back. On the technology front, we have setup and operationalized our 24X7 command center operations. We have successfully extended our hand held technology from Retail cash management to ATM operations and endeavor to complete full roll out before the end of this financial year. management According to you, what are the opportunities available in the Indian banking industry? How are you planning to tap these opportunities? We are very optimistic on the future outlook of the industry as newer opportunities and opening up in the banking industry. Both Private and Public sector banks are outsourcing their Cash Processing centre operations, requirement in the market for improvement of cash efficiencies and reduced cycle time for cash circulation, automation in the branch banking space through automation of Cash deposits, Cheque processing kiosks , Cash recyclers etc. There is significant opportunity for growth and expansion in the Cash logistics, cash processing, cash optimization, cash forecasting and payment processing space. avenuesare increasing What are the major challenges faced by the banks in terms of cash management? What role has been played by the cash management solution providers to overcome these challenges for the banks? One of the biggest challenges that the banking industry is facing is the increasing cost of Cash. Currently, the cost of cash is distributed across logistics cost and built in inefficiencies Experts’ Speak 3