Cash inventories/ cash holdings
All time correct inventories for cash points are essential for advanced cash cycle management concepts, including cash forecasting, just-in-time delivery of cash shipments, “note held to order” (NHTO). All concepts aims to reduce cash holdings and linked capital within the cash cycle or for each cash point, e.g. ATMs, vaults, branches, cash centers.
Optimization of cash holdings needs mainly process adaptations in logistics at wholesale cycle and branch cycle level in conjunction with adequate software tools for planning and controlling of inventories.
Following concepts are in practical use:
- Cash optimization for ATM networks with functionalities for cash monitoring, forecasting, planning and just-in-sequence delivery
- Cash optimization for cash center/ branch networks, incl. “notes held to order” inventories for arrangements in which retail banks or CiTs manage cash on assignment or on behalf of Central Banks
- ECI program: Initially introduced by the Federal Reserve Bank to optimize US currency holdings worldwide and to reduce connected investment costs for cash vaults. The currencies are transferred to the accounting system of the Central Bank, but physically held by a financial institution within its secured facility.