Sponsored by Loomis
2009 was the last year physical bank locations increased. There were nearly 100,000 branches across the U.S. Now, there are fewer than 80,000. In 2023, an additional 1,409 bank branches in the U.S. closed according to S&P Global Market Intelligence data. The COVID-19 pandemic accelerated bank closures because of the push to decrease face-to-face interactions, and since then, physical bank locations have continued to decline.
Merger and acquisition activity has been another factor driving bank branch closures with bank deal value surging to a 15-year high in 2021. As financial institutions merge, redundant branches are closed leaving many local businesses in cities and rural areas alike in the lurch.
Operators are tasked with finding workarounds and new solutions. That might mean never going into a branch at all.
“It’s forcing operators to either drive further to make their bank deposits or open up new accounts with different banks,” says Lenny Evansek, the senior vice president of retail business development at Loomis. “The result is more relationships to manage, more administrative work to sift through, and potentially higher fees by having smaller but more bank relationships.”
Each bank account comes with its own set of statements, transaction fees, and customer service requirements, which means more paperwork and complexity. The accumulation of fees across several accounts can erode profits, especially for smaller businesses. The complexity of managing multiple relationships can lead to errors and oversight, which can negatively impact a business’s efficiency and financial health.
To manage cash-handling tasks more efficiently, Loomis offers an automated system. SmartPoint is a cutting-edge smart safe that securely stores and validates cash until it’s ready for deposit. With the bundled solution, operators gain access to trusted cash transportation services, convenient change order capabilities, and detailed reporting tools.
“Loomis gives customers the ability to virtually work with their banks,” Evansek says. “They can deposit their money whether their bank is within 10, 100, or even 1000 miles. This enables them to consolidate their bank relationships from many down to one.”
Loomis SmartPoint also provides significant operational advantages that can lead to cost savings and improved efficiency. “It potentially saves on labor,” Evansek says. “It can help operators schedule more efficiently by not having to schedule an extra employee knowing someone has to leave the restaurant to go make a bank deposit.”
Operators using SmartPoint can manage all their information under one platform using their mobile devices or laptops, bringing consistency to their finance and accounting departments. “They can see their cash deposits and cash positions for all their restaurants at any given time,” Evansek says. “It enables them to troubleshoot any issues that might be out in the field when it comes to balancing. It saves operators a significant amount of time by being able to do all this remotely rather than calling each restaurant individually or sifting through many different bank portals and reporting solutions.”
Loomis’s innovative approach helps businesses save on labor, streamline operations, and improve their financial efficiency, proving essential in adapting to the new norms of banking and cash handling.
Ready to transform your approach to cash handling? Visit loomis.us to learn more.
By Olivia Schuster
