How CASHINTEGRITY Can Make Commercial Clients More Profitable

QDS’s CashIntegrity program is a great tool for FIs to use for growing commercial deposits among business clients. Not only does remote cash capture allow your FI to partner with clients outside your branches’ limited geographic reach, the structure of the CashIntegrity program also grants you the ability to control the prices you set for your clients and leverage the profitability of your business partners.

Creating a fee structure that best accommodates your FI’s needs and the implementation of an optional provisional credit feature gives your institution control over interest rates and margins. With CashIntegrity, your institution can leverage these two things to profit from your clients in ways that benefit all parties involved.

ESTABLISHING A LENDING RELATIONSHIP

Our CashIntegrity program helps FIs form holistic relationships with their clients. By reducing armored car’s involvement in your FI’s smart safe program, we give you greater control over your safes so the armored car companies can do what they’re best at: transporting cash. Remote cash capture makes your FI more accessible to its business partners, putting your FI in a better place to serve business clients and form lending relationships with them.

Rather than armored car services setting your prices, CashIntegrity gives your FI the flexibility to develop and control fee structures that reflect this relationship-based lending. With the custom fee structure and provisional credit feature, you can ensure your FI doesn’t lose profit when investing in commercial clients and that both parties mutually benefit from CashIntegrity.

The optional nature of the provisional credit feature enables you to assist a variety of clients. Some clients may not need the daily cash credit your FI can offer and won’t need to pay the fees, because they don’t need the daily deposit credit to cash flow their business. Another commercial client may have a chain or be a franchisee. Many chains like having the daily cash flow hit their balance sheet to drive inventory purchases from stores on a daily basis. By implementing provisional credit with these client ­types, you create a better flowing cash system that allows them to take advantage of cash deposits daily even though the physical cash may only be picked up once or twice a week.

COST REDUCTIONS

Remote cash capture gives FIs the ability to gather deposits inexpensively, giving FIs flexibility to control margins and gain profit.

Remote cash capture makes it less expensive to process cash. Remotely processing cash through smart safes eliminates a need for cash handling in physical branches. This cuts some of the FTE, equipment, and infrastructure costs necessary to keep a branch operational. FIs can easily expand their deposits and grow their branches through remote cash capture. By remotely collecting the $20-$30 million in deposits the FI needs to break even, institutions can profit from what’s collected without having to pay labor and equipment expenses they would expend in a branch.

It’s possible that commercial accounts that process a lot of cash transactions will only create a single digit margins for their financial institutions. After utilizing remote cash capture, that margin can increase by around 25-30 percent, making these clients two to three times more profitable.

MITIGATING RISK

We understand that some of your clients may operate within areas with higher crime or robbery rates that can pose a security risk to your clients’ finances and upset profit margins within your financial institution. Many FIs struggle with money service business clients especially. Reducing financial risk within your institution is likely a priority in your FI. CashIntegrity gives your FI control over risk-based pricing to compensate for such revenue disruptions. This might help your institution better handle clients with a higher risk who are likely to create compliance challenges.

CONCLUSION

CashIntegrity is a tool FIs can use to grow their deposits and revenue and better lending relationships with commercial clients. By establishing a customized fee structure that serves you and your clients, you can better organize how your FI handles relationship-based lending in a way that benefits you and your partners, creating a win-win relationship for you and your clients.