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Mfi 2

The document discusses cash management and demand forecasting for ATMs, highlighting the importance of cash flow and supply chain management in retail banking. It outlines key elements affecting cash demand, such as branch location, account types, and seasonal factors, while also detailing the structure of cash flow and the IT infrastructure involved. Additionally, it emphasizes the need for accurate demand forecasting methods and considerations to avoid stockouts and minimize delivery costs.

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Utkarsh Awasthi
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© Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online on Scribd
8 views17 pages

Mfi 2

The document discusses cash management and demand forecasting for ATMs, highlighting the importance of cash flow and supply chain management in retail banking. It outlines key elements affecting cash demand, such as branch location, account types, and seasonal factors, while also detailing the structure of cash flow and the IT infrastructure involved. Additionally, it emphasizes the need for accurate demand forecasting methods and considerations to avoid stockouts and minimize delivery costs.

Uploaded by

Utkarsh Awasthi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Todays Topic

Cash Management and Demand Forecasting in ATMs Cash Demand Forecasting ATMS Post and Pre installation ActivitiesActivities-

8/9/2008

Ssim mfi csk

Cash Management In Banks


In Retail Banking the major delivery channels for cash to the customers are bank branch and ATMs. Requirement of Cash Management Supply chain Management in cash flow

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Key Elements In CMS SCM


Product in SCM is Cash Players in Supply Chain are
RBI The Corporate Branch The Retail Branches The Delivery Channel Co-ordinators Co Out Sourced agents ATMs & ATM Vendors
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Key Elements In SCM


Cash Flow Information Flow IT Infrastructure

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Demand Drivers
Location Of the Branch/ATM Number Of Current Accounts Resident Accounts and Their Age Profile Number Of salary Accounts Seasonal Factors including weekends, Festive days

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Typical Structure Of Cash Flow in Banks


RBI

Corporate Accounts

Main branch

branch

ATM Out sourced agent


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Factors considered for cash requirement


Total Deposits of The Branch Total Advances Branch Location Number of salary accounts Corporate accounts Total Receipts and payments Other Subsidiary services
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Contd..
International cards Balance transfers Loans to doctors and nurses Loan to women entrepreneurs Loans to teachers Loans for professionals/ technocrats for improving their qualifications
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ATM IT CHAIN
Main server

Atm Switch

Atm

atm

atm

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Blocked arrow for cash withdrawal and credit card Arrow for info cash replenishment Line for mis from corporate office

Bank branch

Switch network

Delivery channel coordinator Outsourced delivery agents

Visa server Visa/master Server at corp office


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Link between the central server Atm and vendors

ATM

Cental server

Delivery Channel coordinator

Atm vendor

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11

Demand Forecast
Defining the Market For the Product/ Basket of products Dividing total industry demand into its main components Forecasting the drivers of demand in each segment and projecting how they are likely to change Conducting sensitivity analysis to understand the most critical assumptions and gauge risks to the base line forecast.
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Selection of forecasting method


The context of the forecast Relevance and availability of historical data Time period to be forecasted Degree of accuracy desirable Cost benefit or value of the forecast to the bank Time available for making analysis
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Points to noted
NO Stock Out situation Not much of Idle Cash Cost of delivering the cash must be minimized Lead Time to deliver is to be minimized Architecture of Supply Chain Location of branches/ atms Relationship with outsourced agents
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Methods for forecasting..


Time series Judgmental forecasting

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15

Time Series Analysis


Normal trend Seasonality factors Judgmental factors

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16

Next session
Innovations in products and services

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17

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