Essential Elements of Effective ATM Cash Management...• Recently acquired by BBVA (Banco Bilbao...

ATM, Debit & Prepaid Forum 2007

Essential Elements of Effective ATM Cash Management

October 5, 2007

Robert Shaw, Compass Bank Robert Malik, Pendum, Inc.

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ATM, Debit & Prepaid Forum 2007ATM, Debit & Prepaid Forum 2007

Agenda

• Using advanced forecasting and route scheduling capabilities to maximize the efficiency of cash replenishment at Compass Bank

• Reducing ATM downtime by keeping everyone who touches the ATM on the same page

• Safeguarding ATM cash, employees and customers to reduce fraud and theft

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About Compass Bancshares

• 34.2 Billion in assets • Headquartered in Birmingham, Alabama• Among the top 30 U.S. bank holding companies by asset

size• Recently acquired by BBVA (Banco Bilbao Vizcaya

Argentaria S.A.)

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ATM, Debit & Prepaid Forum 2007ATM, Debit & Prepaid Forum 2007 Source: Dun & Bradstreet 2005

Regional Banking in the Southwest

• 415 full service banking centers– 164 in Texas – 89 in Alabama – 75 in Arizona – 44 in Florida – 33 in Colorado– 10 in New Mexico

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ATM Presence

• 331 ATMs– 99 in Texas – 107 in Alabama – 63 in Arizona – 29 in Florida – 29 in Colorado– 4 in New Mexico

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Compass Cash Management Case Study

• In-house process before– Managing 583 ATMs with two staff members– Limited ATM system reports– Excel spread sheets– Multiple ATM vaults

ChallengeChallenge

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• Trusted ATM Partner– Efficiencies in replenish schedule– Safety and security– Maintain uptime standards

• Automated Process

RequirementsRequirements

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• Benefits of an ATM cash management Integrated Partnership– Reduction of cash– Emergency Cash replenishments

• Limited calls• No cost

– Streamline Federal Reserve cash orders

SolutionSolution

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• Compass Bank and Pendum, Inc. Partnership• Compass and Pendum signed contract in September of

2004 for ATM cash replenishment service• Initiated discussions to provide cash management

service in summer of 2005. Began pilot in October 2005 • Signed agreement for cash management in early 2006

PartnershipPartnership

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Pendum at a Glance

• 42 states, 50 metro areas • 2000+ customers• 100,000 ATMs and transaction terminals served• 72 armored branches / vaults• 500+ armored vehicles• 800+ maintenance technicians

Delivering The Value of OneDelivering The Value of One

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Cash Management Solution Considerations

• In Source or Integrated Partnerships – Size of business– Maturity of business– Your business strategy– Growing or stable

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Key Considerations

• Meet Compass Business Objectives– Maintain uptime standards– Efficiencies in replenish schedule– Safety and security

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Cash Management Tactics based upon Strategic Business Objectives

• Target Residual Based upon Program Goal– Efficiencies– Uptime

• Define Exceptions– Key markets– Key customers– Transaction volumes– Local events– Cash source– Remote locations

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Managing Exceptions

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Managing Integrated Partnerships

• Pre-determined Business Objectives– Maintain uptime standards– Efficiencies in replenish schedule

• Key Players – ATM Owner– Field Service Vendor– Armored Vendor – Cash Source

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Cash Management Cycle

• Integration of Systems – Analysis of historical data– Network Data Feed– Cash Management – Armored vendor

routing

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Daily Data Management

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Managing Trends

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Integration with Corporate Financial Systems

• Cash management tool • Settlement• Reconciliation• Exception reporting• Staffing

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Cash Management Results for Compass

• Immediately reduced cash vault by 12%• Ongoing reduction of residuals by 32%• No increase in emergency cash

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Responding to Evolving Business Needs

• Continual analysis of transaction trends• Adapting to changes in business conditions

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QuestionsQuestions

Thank you!Thank you!Robert MalikExecutive Vice PresidentPendum, [email protected]

Robert ShawVice President, ATM ManagerCompass [email protected]

mailto:[email protected]

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Essential Elements of Effective ATM Cash Management...• Recently acquired by BBVA (Banco Bilbao...

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