ATM Cash Forecasting

A Cash flow Management Solution for ATMs

The Customer

Our customer is a multinational bank and the largest commercial bank in Pakistan, in terms of assets. The company, which is headquartered in Karachi, Pakistan, provides consumer, corporate and institutional banking as well as treasury services. As of 2018, the bank has more than 1750 branches, with presence in over 25 countries spanning across four continents.

The Problem And The Solution

The bank has more than 2000 Automated Teller Machines (ATMs) all across the globe and wanted a solution to predict the cash-flow management for those ATMs. They chose us to develop this cutting edge solution because of our experience in developing innovative technology solutions and expertise in enterprise systems. Based on the bank's requirements and suggestions, we crafted a sophisticated solution that out performs others in market predictive solutions. The solution offers an approach which resolved the overall problems faced by the Bank, in terms of the cash flow management for ATMs and resulted in the ATM management profits to increase up to 6%.

Key Features Of Our Solution

Availability

ATMs have brought a significant change in the way banking transactions are performed every day, availability of the correct amount of cash in every ATM machine is a major cause of concern for all banks. By predicting the appropriate amount, which also fulfills the guidelines of the central bank, is essential for commercial banks that are required to maintain a minimum amount of cash in their ATMs to maintain customer satisfaction; our solution helped the bank to effectively overcome this concern.

Optimization

This solution directly answered the optimization aspect of cash flow management for ATMs, as it addressed the problem of availability and optimization of ATM cash management. We crafted a sophisticated solution which outperformed other existing predictive solutions and increased the ATM management profits up to 6%. The system also helps the bank in avoiding both, out of cash and over stock situations.

Automation

When it comes to commercial or corporate banking, time is of essence and valuable to the utmost extent. Our system effectively provides automated analysis of past transactions in order to predict the required amount of money for individual ATMs. This automated solution also offers notifications and timely reporting in order to predict the trend and pattern of cash withdrawal from specific ATM locations.

Customer Satisfaction

In this era, when consumers have many choices, customer retention is a key factor in the eventual success of any business. Therefore, the variation in the cash demand and forecasting is very crucial for banks, specifically in relation to providing up-time services for ATMs which can result eventual customer satisfaction.

Forecasting

Banks endure various costs, including the insurance and administration cost for cash under the machines. Forecasting the cash flow with patterns/trends and real-time data makes the solution accurate and cost effective. It is a per-ATM cash outflow predictor that proposes LSTM-based deep learning models on time-series data.

Thanks to the efforts of Folio3 and our partner Fidel AI, the solution of ATM Cash Forecasting has enabled the bank to substantially improve its overall cash flow management for ATMs, while meeting the stringent security requirements demanded by the industry.

Technology used: Scikit-learn

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Frequently Asked Questions - FAQs

Cash models are categorized on the basis of timeframes.
  • 1. Daily Cash Forecasting The daily cash forecasting model is for short term liquidity management. Companies use cash forecasting tools to manage day to day cash requirements.
  • 2. Weekly Cash Forecasting It is cash forecasting model which gives a medium term view of upcoming cash positions.
  • 3. Monthly Cash Forecasting The monthly cash forecasting model is for long term planning purposes. It follows the budgeting processes and is a logical extension.

A direct cash ATM management system is a revolutionary solution for banks. It completely automates the ATM cash management process, minimizing the chances of human error while optimizing the management based on optimal cash demand. Using an advanced forecast and cost optimization algorithm, the software helps banks save up to 30% on ATM operational costs. It strengthens the management of cash in an ATM. It streamlines all the processes, helping banks find out new cost saving potentials and even assists in enhancing the cash availability.

Times Series and Neural Networks The time series and neural networks is a cash forecasting technique which helps in reduction of financial costs. It uses the historical ATM data for effective forecasting and decision making. Time series are observations that are collected sequentially over time. The factors of consideration include the day of transaction, working day or not, month, and year. Neural networks is used in machine learning applications and time series forecasting is one of them. It is based on simple mathematical models of the brain. These two work in combination to identify the relationship between several factors of cash demand which then predicts the daily cash demand. Exploratory Data Analysis The Exploratory data analysis makes use of visual methods for data analysis. It summarizes the main characteristics and it shows data that showcases information that is beyond formal modeling.

If proper mediums are not used, ATM cash forecasting can be a subject human error and result in loss. With an ATM cash management software in-depth analysis of transaction history is possible. Banks can categorize terminals by seasonality and variability patterns. It helps them mitigate risk and prevent loss.