Fiserv iCom

The solution iCom on inventory management of cash in the organization. Thanks to its implementation it is possible to reduce use of money for 20 – 40% that will increase efficiency of the organization in general and will reduce the different costs connected with transportation and storage of money.

NVision Group: calculation of economic effect of implementing solution for iCom cash management from Fiserv company

iCom is the solution for banks, ATMs, safes and devices on cash disbursement of means, and also for suppliers of collector services, allowing to optimize all logistics chain of transportation of cash and to reduce costs on service by 20 – 40%.

Efficiency analysis of the solution iCom was carried out by specialists of NVision Group and Fiserv on the basis of test operation of the solution iCom for four universal banks providing services in domestic financial market. In test operation, 89 ATMs were in total involved. The period of testing was from 3 to 6 months.

By means of the solution iCom the maximum limits of the actual expenditure of cash in ATMs were calculated. It allowed to determine necessary order sizes of cash for loading in ATMs. During test operation of the solution it was not recorded any case of exceeding of expenses of cash over the thresholds set to iCom. It allowed to lower order amounts of cash and to save in addition on decrease in the amount of insurance of ATMs, the cost of the return collection, costs on recalculation of cash, etc.

For an example the actual average week cost of collection for the ATMs participating in testing was 3,000 rub. The average week cost of expenses after optimization of the diagram of carrying out collections was 2,170 rub So expenses on one ATM managed to be cut down for 28% (830 rubles). When calculating for one calendar year, it makes 43,160 rub (830 rub x 52 weeks) on one ATM. Respectively for network of 100 ATMs economy makes already more than 4.3 million rubles.

The general amount of reducing costs of cash management, however, cannot be received simple mathematical addition of two independent results of optimization on separate ATMs. The general cost reduction from optimization of cash management during test operation of ATMs made from 19 to 31%. Thus, for efficiency evaluation of the implementing solution iCom from Finserv we use an average indicator of cost reduction in 23%

As foreign practice of implementing solutions shows, the data obtained as a result of test operation are rather exact in order that on their basis to make the qualified decision. With increase in ATM network proposed solution allows to achieve the most optimal cost reduction.

Calculations show that for the banking network consisting of 400 - 500 ATMs, the payback of the solution can be less than one financial year, taking into account time of the proposed solution spent for implementation. The payback of the solution for the network consisting of 100 ATMs is reached in two years. Thus the scale effect – the more ATM network is available, the economic effect is reached quicker.

Examples of the large implementing solution iCom in the world:

Bank of America. It is implemented in 2004. Economic effect of 22%

• 6100 departments
• 19000 ATMs
• 50 cash depositories

Banorte – Mexico. It is implemented in 2005. Reduction of the transported cash liquidity of-17%, reducing costs for collection - 20%, reduction of residual amounts in ATMs - 5%

• 950 departments
• 2080 ATMs
• 60 cash depositories

HSBC - USA. It is implemented in 2007. Total expenses on service of ATM network decreased by 24%

• 470 departments
• 600 ATMs