As their cash costs continue to rise, banks will be under increasing pressure to manage their cash operations more effectively. Although internal improvements can bring significant benefits, outsourcing produces even greater savings—as well as higher risk exposure. Collaboration enables banks to cut costs considerably while minimizing
risks. In Australia, Finland, and Austria, jointly owned cash supply chain management providers have successfully brought down the cost of cash while maintaining security and confidentiality. Such initiatives also give the banks more bargaining power over suppliers and leave them less vulnerable to single-point-of- supply failures.
Booz & Company