Whether you’re a bank or a Cash-in-Transit (CiT) business, you’re continually competing for retail business. You’re likely competing for retail clients by offering the lowest interest rates or service fees. But what happens when you’re not the cheapest game in town? What can you do to win on more than just price? And while you’re at it, how do you increase profits on your retail accounts?
All retailers have the same basic problem – managing cash is inefficient, increasingly expensive and it can’t be used for working capital until the cash is deposited into an account.
“Managing cash in stores remains a major challenge for retailers. Cash is expensive to process and secure. In addition, trapped cash hinders working capital management: When cash sits in registers and in cash rooms, it is unavailable for investment, debt repayment or business expansion,” Joan Brancaccio, product management executive at Bank of America told Banking Technology.
Why should financial institutions and Cash-in-Transit companies solve cash management problems for retailers?
Because helping your retail customers manage their cash more efficiently may be your key to a long-term (and more profitable) relationship. Retailers can enjoy the same benefits of cash handling technology as banks. If you can offer an end-to-end solution to address their cash management woes, you’ll stand out from the competition and have a customer who trusts you for other financial needs.
How does that help me cross sell?
If you supply retail customers with recyclers or smart safes, those devices are transmitting daily deposit information to your institution. That detailed cash data translates into powerful information you can leverage for other profitable endeavors. Additionally, being able to forecast incoming cash collections helps you better manage the cash inventory in your branch. And with insight into daily cash averages for a particular retail customer, you have the information you need to determine if you can give them a credit line increase or offer a better interest rate. More insight into cash patterns and volumes for a customer, helps you predict their needs and offer more relevant services.
If you are a Cash-in-Transit company and you’ve secured a long term contract with a retail client, you have years of opportunity to offer other security services in your portfolio and leverage cross selling opportunities that are targeted and relevant to the client.