Al Rajhi Bank
Background
The largest bank in Saudi Arabia approached Zafin Labs to address a specific and very costly problem the bank was experiencing related the management of its physical cash. After initial analysis the bank realized that it was maintaining large amounts of idle cash in its network resulting in higher interest costs on idle funds. The Bank selected miCashOptimizer to apply a new, more sophisticated approach to manage physical cash within their bank and to significantly reduce idle cash.
Key areas addressed:
- Manual cash management processes
- Idle cash while still having high cash outages in many cash points
- Decentralized processes and filling company management.
- Limited access to actionable transaction data
Actions Taken
The first step in the project was to ensure accurate data was available for use by the miCash solution to ensure the optimization and filling automation capabilities would deliver significant costs savings. Upon completion the follow key actions were taken:
- Build of customer data adapter to obtain accurate transaction information from bank source systems
- Trained optimization model based on 24 months of bank data history
- Created bank specific models to address unique rural and urban cash points
Value Delivered
- Significant reduction in cash out situations
- Savings in interest costs with optimized cash loadings
- Fully automated process with alerts and reports to ensure streamlined operations with minimal manual interventions