Pub. 12 2017-2018 Issue 4

WWW.NEBANKERS.ORG 28 F OR YEARS NOW, THE LARGER BANKS have been realizing the benefits of outsourcing cash manage- ment to a Cash-In-Transit (CIT) or armored car carrier, while commu- nity banks were left to handle all cash management tasks internally, often with an increase in risk and operation costs. But that is changing as more com- munity banks turn to outsourcing to reduce liabilities and improve operational efficiencies. Within the last few years, the trend of outsourcing has been on the rise. In 2014, Mark Lowers, founder and CEO of Low- ers Risk Group, explained in his article, “Understanding the Relationships in the Cash Industry,” that a need to control cost and risk are the driving forces behind this recent change. “The CIT system serves banks, including the Federal Reserve, by providing the transportation, stor- age, processing, accounting, and other services that financial institutions need to ensure the right amounts of cash get to where they are needed,” stated Lowers’ article. “With the extensive geographic dispersion of branch banks and ATMs, it is no longer cost-effective for each and every bank to provide all the cash management services it needs. Today, third-party businesses in the cash man- agement system can support multiple banks, including providing a level of risk management the industry demands.” Better Technology, Better Access Improved technology also has played a role inmore community banks adopting the option of using an armored carrier for more than just secure transportation. As technology improves so does the opportu- nity for community and regional banks to tap into all the benefits outsourcing offers. With the development of more secure sys- tems and standardized file transmissions between armored car carriers and their WALENTINE O’TOOLE, LLP When time is of the essence, experience counts. Walentine O’Toole blends confidence, experience and knowledge with the personal attention you can expect from a regional law firm. www.w alentineotoole .com 402.330.6300 11240 Davenport St . • Omaha, NE 68154-0125 OUTSOURCING CASH VAULT MANAGEMENT GAINS TRACTION AT COMMUNITY BANKS Tracy Dreessen, Manager of Customer Service & Sales Coordinator, Rochester Armored Car banking customers, smaller banks are now in the position to take full advantage of an outsourced cash vault. Often that in- cludes access to a secure web portal with the ability to review real-time activity, monitor inventory levels, alter orders, and access a variety of robust reporting tools. Banks like Omaha, Neb.-based, Amer- ican National Bank have seen firsthand how outsourcing can change day-to-day operations. Scott Logsdon, vice president of American National Bank, said manag- ing simple tasks like changing ATM loads is now done online through a secure web