We provide Intelligence to ServicesForecasting Optimization Bussines Intelligence Software Solutions

FOBISS Cash Management Enterprise for ATM networks and Branches

Executive Summary

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FOBISS (www.fobiss.com ) supplies advanced automation and intelligent control systems, as well as technologies and software to the continually evolving banking industry

FOBISS solutions are highly specialized to help solve service delivery and management problems, improve retail banking cash supply.

FOBISS Cash Supply Chain Management is built to provide banks, CIT’s, ISO’s with the most advanced tools to manage, improve and optimize cash supply chain, cash logistics, ATM and Branch cash management (forecasting, planning and optimization).

With FOBISS products Banks or Cash Management stakeholders can save up to 40 – 50 % of cash logistic related costs. We can help to optimize business by increasing profit and overcoming losses of resources and customers.

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Main Benefits of FOBISS CM Enterprise Reduction of cash related operating costs by up to 40 – 50%;

Automation of the existing procedure;

Improves quality of service;

Prevents and minimizes out of cash incidences up to zero;

Helps planning management time;

Simplifies training programs for new managers;

Individual real time self-learning of historic and momentous demand factors and constrains based on patterns at each particular cash point;

Cash demand forecast of each particular cash point;

Enables speedy data comprehension and decision making by operational management;

Controls and monitors management performance.

Cash Cycle Management of ATMs and Branches using single personalized artificial business intelligence system

Managing the Cash Cycle

The challenges of managing the cash cycle involve two key distribution and delivery channels to customers: in the branches and via ATMs.

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Average annual ATM operation costs

According to ATMIA, annual average operational costs per ATM are USD 15000*. Statistically, approximately 40% of ATM costs are related to cash FOBISS CM product helps saving up to 40-50% of ATM cash related costs.

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Actual numbers of specific ATMs may differ

5

13%

11%

10%

9%9%

2%2%

15%

9%

9% 8% 3%

OCCUPANCYDEPRECIATION1st LINE MAINTENANCE2nd LINE MAINTENANCECOMMUNICATIONCONSUMABLESSECURITYCENTRAL SERVICESINTEREST ON CASHCOST OF CASHCITINSURANCE

44 % of the total costs are directly linked to handling cash

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Big headache for a banks planning department

Heads of department responsible for planning have no transparency into the processes of cash logistics and have difficulties to forecast the optimal amount of cash required in each ATM and bank branch.

How to ensure ATMs and Branches are supplied with the optimum level of cash? It is a costly task.

It takes up much of the management time to supervise stocks and make decisions in relation to future supply consignments, etc.

It is difficult to forecast cash demand in different areas, at different time, in different denominations and etc.

Cash level in ATMs & Branches is usually too high... But what is the “optimal” level when the circumstances change too fast?

Dormant Cash must be “employed’’.

It would be great to have “Tomorrow’s newspaper”

today…

Current surveys estimate dormant cash levels: in ATMs at 30 to 60%

In Branches at 15 to 30 %

Dormant cash or why does cash sleep...

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Banks are not aware of their cost of holding currencyThere is no clear visibility of supply networkSometimes, control of cash replenishment is outsourced to third parties

Banks frequently treat currency as a commodity Excess amount of cash is held to satisfy unknown customers demand With no reasonable forecast of currency demand, banks simply follow their risk

departments’ upper limits

There are still many banks globally which have not yet centralized the process of currency management

20 - 40 % of cash logistics costs is related to cash handling

Why banks frequently have weak negotiating position against external service providers?

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Simple fact: 20 - 40 % of cost in cash logistics is related to cash handling.

Third party Supplier Negotiation Banks frequently have no clear visibility of their cash logistics needs

This puts them into a weak negotiating position vis-à-vis service providers Order execution and management

Cash logistics is not optimized “the way you need” by third party providersBanks still face the lack of automation and integration of the cash management services (i.e. manual service matching with invoices etc.)

Current market responses

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There are cash supply chain management solution providers globally which offer their soft ware to solve the problems of a centralized ATM network and/or Branches cash management, but:

Some of the systems are developed just for one hard ware manufacturer or heavily depends on it;

Some of the systems are developed just for the ATMs or just for the branches;

Few cash management systems forecasting cash demand use more than one method/technique

NONE of them uses intelligent methods.

Why is it so crucial to use them?

The advantages of Artificial Intelligence

Artificial business intelligence engines as developed by FOBISS performs like a giant human brain. It enables to set take into account a very high quantity of business constrains customized to Cash Point individually. This allows to upgrade the Cash Cycle management into new business level.

It is self-learning

It assumes

It adopts

It finds typical and untypical behavior of each

Cash Point

It predicts

FOBISS uses state-of-the-art technologies employing Artificial Business Intelligence engines. This makes FOBISS CM system extremely accurate and brings its user the greatest savings compared to other similar solutions currently available on the market.

It analyses and suggests Its user the most valuable

decisions

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FOBISS CM functionalities (1)

Filter all ATMs/Branches in the network based on the volume of cash demand/supply;

Real-time view of cash status at each ATM/Branch. Automatic alerts (SMS; Mails) based on high, normal and

low level of cash; Statistics of cash demand/supply for each ATM/ Branch

(day, week, month); Real-time cash demand/supply plots together with

statistical averages.

Monitoring

Optimization by key parameters Market interest rates;

Cost of cash versus CIT visit volumes

Cash supply and logistics costs;

Insurance costs;

Physical constraints (min, max cash amount);

Any other user defined constraints

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Flexible adaptive artificial neural networks (ANN). ANN agent is employed for each Cash Point and learns complex relationships between input variables (constrains) and cash demand/supply.

Adaptive fuzzy expert systems (expert clone). Experts' knowledge is involved to form the initial cash demand/supply forecasting rules using user-friendly fuzzy logic interface.

Adaptive support vector regression. Support vector regression is special modification of support vector machine’s techniques dedicated to solve nonlinear regression problems.

Forecasting of Cash Demand/Supply

FOBISS CM functionalities (2)

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CIT services

Automatic Cash replenishment daily report orders for CIT

Cash replenishment delivery status monitoring reports.

Automatic scheduling based on user defined constrains, forecasting and current status

Intelligent analysis of ATM networks

Automatic identification of procedures in order to continuously supervise the ATM and Branch networks.

Intelligent analysis and early detection of the unexpected behavior of ATMs/Branches (or any other Cash Point) are crucial for efficient network performance.

FOBISS CM functionalities (3)

FOBISS CM Enterprise FOBISS CM SaaS

FOBISS Business Model – Enterprise or SaaS

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Case study of bank “X” (Europe)

Cash flow monitoring; Optimal cash load in predefined period; Optimal cash remainder; Optimal incasation time; Fast reaction to changes of interest rate or insurance cost or local events.

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Business Value of FOBISS CM Solution

Average costs (related to cash) per year per 1 branch

0

10000

20000

30000

40000

50000

60000 51954

41851

Branches Cash Related Costs Savings

Before After (using FOBISS CM)

Cash

rela

ted

cost

s

Average costs (related to cash) per year per 1 ATM0

500

1000

1500

2000

2500

30002692

1443

ATM Cash Related Costs Savings

Before After (using FOBISS CM)

Cash

rela

ted

cost

s

Before After (using FOBISS CM)0

100

200

300

218 196

897

Branches CiT Work Improvements

Planed Non Planed

Repl

enis

hmen

t Qty

per

yea

r pe

r 1 b

ranc

h

Before After (using FOBISS CM)0%

10%

20%

30%

40% 36%

13%

ATM Cash Back (Excess Inventory) Improvements

Cost improvements by 19% Cost improvements by 46%

* Costs related to cash (evaluated): Cost of Cash; Interest on cash; CIT and insurance (savings in EURO)

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FOBISS CM

ATM cash management working places

automationATM network annual savings $4.27 million

Bank service network size:

~5000 ATM'sCash daily value in Network

~$60 million

$4.27 million cash related costs* savings per year**

The cash replenishment costs are $208 per ATM each month.

* Costs related to cash (evaluated): Cost of cash; interest on cash ; ** based on historical data evaluation;

CASE study of bank “Y” (ASIA)

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Next steps for

FOBISS would like to schedule a meeting in the near future for a live demo and to get your feedback regarding our proposed solution

If you are interested to continue, we will propose a way to assess real benefits FOBISS CM can generate to the bank, by launching a pilot to test

our solution

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Next steps

FOBISS would be grateful for your feedback on the proposed solution, and would like to schedule a meeting in the coming weeks for a live demo

We also would like to assess real benefits FOBISS CM can generate to the bank, by launching a pilot to test our solution

Ahead of the meeting, we also could simulate your institution’s cash cycle processes at our test labs and prepare possible system saving reports of your ATM and/or branch network

For that we would just need:

1) Sign an NDA2) Provide minimum one year of transaction data from your [client]

ATMs/branch network (of course with masked identities) (~ 20 % network size is enough for the pilot)

3) Fill the Questionnaire (which we will send to you/your client once the NDA is signed)

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We provide Intelligence to ServicesForecasting Optimization Bussines Intelligence Software Solutions

CONTACTS:

Company visionTo make reasonable and smart, environment intuitive and adoptable provision of all services and goods in retail and retail banking sectors.

Company valuesInnovation is our company’s energy;The People are our company’s engine and most valuable resources;We bring science close to business and Practical realization;Constant Changes are our opportunities;Impossible Solutions don’t exist for us;We Know How tomorrow will look like;

Company missionHelp financial institutions, banks, retail companies to make more efficient use of their available resources and more efficiently provide services and sell goods by improving profit.

a.karampolas@sigmahellas.org