We provide Intelligence to Services
Forecasting Optimization Bussines Intelligence Software Solutions
FOBISS Cash Management Enterprise
for ATM networks and Branches
Executive Summary
 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
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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
3%
8%
13%
9%
OCCUPANCY
11%
DEPRECIATION
1st LINE MAINTENANCE
9%
10%
2nd LINE MAINTENANCE
COMMUNICATION
CONSUMABLES
15%
9%
SECURITY
CENTRAL SERVICES
INTEREST ON CASH
9%
COST OF CASH
CIT
2%
2%
INSURANCE
44 % of the total costs are directly
linked to handling cash
 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.
Actual numbers of specific ATMs may differ
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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?
It would be great to have
“Tomorrow’s newspaper”
today…
 Dormant Cash must be “employed’’.
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Dormant cash or why does cash sleep...
 Banks are not aware of their cost of holding currency
There is no clear visibility of supply network
Sometimes, 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
Current surveys estimate dormant cash levels:
in ATMs at 30 to 60%
In Branches at 15 to 30 %
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Why banks frequently have weak negotiating
position against external service providers?
 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 providers
Banks still face the lack of automation and integration of the cash management services
(i.e. manual service matching with invoices etc.)
20 - 40 % of cash logistics costs is related to cash handling
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Current market responses
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?
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The advantages of Artificial Intelligence
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 is self-learning
It assumes
It finds typical and
untypical behavior of each
Cash Point
It adopts
It predicts
It analyses and suggests
Its user the most valuable
decisions
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.
FOBISS CM functionalities (1)
Monitoring

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.
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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FOBISS CM functionalities (2)
Forecasting of Cash Demand/Supply

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 userfriendly 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.
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FOBISS CM functionalities (3)
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.
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FOBISS Business Model – Enterprise or SaaS
FOBISS CM SaaS
FOBISS CM Enterprise
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
Cost improvements by 19%
Cost improvements by 46%
Branches Cash Related Costs Savings
3000
51954
50000
Cash related costs
Cash related costs
60000
ATM Cash Related Costs Savings
41851
40000
30000
20000
10000
0
2500
2000
1000
500
0
Before
Average costs (related to cash) per year per 1 ATM
After (using FOBISS CM)
Before
Replenishment Qty per
year per 1 branch
Branches CiT Work Improvements
40%
89
7
30%
218
196
20%
Before
After (using FOBISS CM)
200
0
After (using FOBISS CM)
ATM Cash Back (Excess Inventory)
Improvements
400
100
1443
1500
Average costs (related to cash) per year per 1 branch
300
2692
36%
13%
10%
Planed
Non Planed
0%
* Costs related to cash (evaluated): Cost of Cash; Interest on cash; CIT
and insurance (savings in EURO)
Before
After (using FOBISS CM)
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CASE study of bank “Y” (ASIA)
ATM cash management
working places
automation
ATM network annual
savings $4.27 million
FOBISS CM
* Costs related to cash (evaluated):
Cost of cash; interest on cash ;
** based on historical data evaluation;
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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 NDA
2) 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 Services
Forecasting Optimization Bussines Intelligence Software Solutions
Company vision
To make reasonable and smart, environment intuitive and adoptable provision of all services and goods in retail and retail banking sectors.
Company values
Innovation 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 mission
Help 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.
CONTACTS:
a.karampolas@sigmahellas.org
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