Cash processing is not only time consuming but fraught with security challenges (and associated high costs of dual custody, surveillance, etc.). The astounding success of remote deposit capture of checks has prompted interest in remote CASH deposit services.
Bankers are attracted to the ability to serve customers in areas where
they do not have branches (much the same appeal as remote check
deposit) and merchants receive faster availability and are able to tap into cash that is otherwise unavailable or "trapped in the system."
BofA and Fifth Third Bancorp are experimenting with specialized safes that allow customers to receive immediate credit for funds that have not left the customers' store locations.
Fifth Third Bank
- Fifth Third Bank is partnering with Brinks to service an unnamed fast food chain and has 400 safes in use nationwide (and expects to have over 500 deployed by year end).
- The product is called "Remote Currency Manager" and has been available since the second quarter.
- The bank does not assume liability until the funds are delivered to the bank by Brinks.
- The bank charges a monthly user fee for the safe as well as a cash servicing fee.
- So far, BofA is piloting with Chick-fil-A, a restaurant chain in Atlanta, but intends to test with five other companies, including a major department store chain and a boutique retailer. BofA says it will offer the service widely in the first half of next year.
- BofA accents responsibility for the funds once they are in the safe.
- Merchants are able to "withdraw" currency from the safe when they need cash.
- BofA has not determined fees for its as yet unnamed service.
Remote's Next Capture: Cash
Fifth Third, BofA eyeing business deposits
Tuesday, October 23, 2007
By Will Wade