Cummins Allison Examines How New Regulatory Costs Could Make Financial Institutions Place an Emphasis on Efficiency

MT. PROSPECT, IL (August 20, 2013) — New regulations may cost financial institutions a significant sum, and they will likely need to revise their processes to ensure they are in compliance. This means many branches may need to increase their customer retention strategies and attract new business by providing the most efficient services possible.

Cummins Allison, the leading innovator and provider of coin, currency and check handling solutions, explains how financial institutions (FIs) can offset these changes by streamlining processes and improving efficiency.

Regulatory Costs Could Present a New Challenge for Financial Institutions 
While the Dodd-Frank Wall Street Reform and Consumer Protection Act was initially intended to protect individuals and prevent another financial crisis, it had several unintended consequences. One of the significant impacts is the cost of implementation in order to remain compliant. However, it appears unclear exactly how much the reforms will impact FIs.

A new research report from the Federal Deposit Insurance Corporation (FDIC) revealed few banking professionals or politicians seem to understand what costs will be associated with Dodd-Frank compliance and how these rules will take effect. Even the FDIC was unable to determine what impacts the legislation will have in the long run, citing in the study’s executive summary, “The study tried to examine how regulatory costs for community banks have changed. Measuring the effect of regulation remains an important question that presents substantial challenges.”

Streamlining Processes Even More Essential 
As banks and credit unions are required to adjust processes in order to comply with Dodd-Frank regulations, they may find it increasingly necessary to implement the most efficient and updated processes that can help them cut costs, enhance their reputations and gain new customers.

Innovative check and currency scanning equipment can improve efficiency and reduce operating costs by streamlining the deposit process. By using technology that brings check, currency and deposit item processing together, branches can image items and count currency right at the teller line or back counter, maintaining a branch/distributed capture model, while also counting currency on the same equipment.  FIs can record an entire deposit using a single machine right at the point of presentment.  This keeps the deposit intact, decreases exception item processing, and minimizes risk. Single-purpose equipment purchase and maintenance costs are minimized, and training is significantly reduced.

High volume currency processing equipment can be used to process ATM deposits and audit ATM cassettes on-site and create bulk currency for ATM replenishment. These same currency sorters can also be used to recycle large volumes of cash at the branch. This allows branch employees to more efficiently manage cash inventory levels and reduce the amount of cash that needs to be ordered for the teller line. Customers benefit from fewer accountadjustments, faster moving teller lines, transactions that are balanced at the teller, and deposit amounts that are verified instantly.

Employing New Strategies to Ensure Compliance
Hiring compliance officers is one way banks are taking the initiative to update processes and guarantee they abide by all regulatory requirements. By having an executive or department dedicated to compliance, a financial institution can ensure it doesn’t miss anything. Staying abreast of Dodd-Frank and regulatory updates is also essential. Banks that are in the process of updating processes to comply could find that a slight rule alteration renders their progress insufficient and could make them noncompliant.

As FIs grapple with the latest regulatory changes, now is the time to invest in advanced cash management technologies. Cummins Allison has made it easier than ever to deploy the industry’s fastest, most reliable money counters. FIs now have the opportunity to trade in competitive equipment or upgrade existing solutions, for more information about Cummins Allison’s summer JetScan iFX promotion, visit

About Cummins Allison
Cummins Allison is a global leader in developing solutions that quickly and efficiently count, sort and authenticate currency, checks and coin. With a heritage of leadership in technology and product innovation spanning more than 125 years, Cummins Allison serves the majority of financial institutions worldwide, as well as leading organizations in retail, gaming, law enforcement and government. Ninety-seven percent of our customers recommend our products and services. CA holds more than 350 U.S. patents and invests double the industry average in R&D. Our world-class sales and service network includes hundreds of local representatives in more than 50 offices in North America, 4 wholly-owned subsidiaries in Europe and is represented in more than 70 countries around the world. For more information, visit

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