Outline: Surviving Budgeting Season for Banks (Part I)
Keyword: Budgeting Season for Banks
Author: Jansen Imhoff
Publish Date: November 26, 2021
Target Audience: CFO and Branch Managers at Banks

Most people might say that the holiday season is the most magical time of the year. However, if you work in the financial world, you might say that budgeting season is the most magical. There’s just something about all the spreadsheets and ledgers that really lift the spirits, right? Maybe “magical” isn’t quite the word you were thinking. Here at Equips, we have compiled a series of questions that everyone should ponder come budgeting season that will make your approach easier and fill you with the spirit of budgeting.

Where can I cut equipment management costs in my budget?

We are often surprised by the number of maintenance contracts different banks and credit unions have when they begin working with us. Aside from having to manage an abundance of different renewal dates and billing methods, we often find that they are paying for coverage on equipment that they no longer own or use. Perhaps the first place to start when you are looking to cut Equipment Management costs is to audit your current maintenance contracts to ensure that you are only paying for equipment that is being used. Here at Equips, we have a team of Solutions Advisors that are happy to help you identify areas where you can cut costs.

Equips also offers an alternative solution—we believe that equipment maintenance should not require you to manage multiple contracts and billing methods. This is why we offer a single maintenance agreement for all of your equipment. With one agreement, you can also get great visibility into all of your equipment and providers, without having to change service providers.

ARTICLE: Budgeting for Financial Equipment Maintenance

What tasks should I delegate to a vendor?

Unless you are a larger organization with your own departments that focus on the maintenance and upkeep of your equipment, you probably are already using service providers to assist in various upkeep tasks, such as replenishing your ATM fleet with cash or repairing your damaged drive-up equipment. There are many factors that determine whether you should continue to use a vendor or bring the service in-house.  The biggest one is obviously cost—can you justify the cost of hiring, say, an ATM technician to repair your malfunctioning machines? Is there enough work to justify the hiring decision? If so, it might be cost-effective. If not, it would be wise to continue using a vendor.

We are often asked our thoughts on ATM outsourcing, and whether or not we think it is a good idea for banks and credit unions. The short answer, absolutely not. Here is why: when banks and credit unions choose to outsource their ATM fleet, they typically understand that they must forfeit ownership of the fleet. What they don’t always realize is the lack of control they inherit when they outsource. We often hear complaints that outsource agencies fail to perform maintenance and repairs in a timely manner, and customers are forced to go elsewhere because of this. For this reason, unplanned downtime is usually a big source of stress and frustration. Unfortunately, there is very little you can do after you sign a long-term agreement.

Luckily, Equips offers an ATM outsourcing alternative that keeps you in control of your fleet. Equips.com gives you the power to manage your own fleet using your preferred service providers. It’s simple—when you store all of your equipment data in Equips.com, you can place a service request for any piece of equipment or facility in as little as 15 seconds. When you combine Equips.com with our coverage, we handle the dispatch and billing for you so that you can worry about more important things.

ARTICLE: Vendor Due Diligence Checklist | Credit Unions & Banks

Where else can I reduce expenses this budgeting season?

The COVID-19 pandemic has certainly been stressful on all of us and has even changed the way that we do business. It hasn’t all been bad though—we now have new ways to reduce expenses. For one, it has now become commonplace to host meetings virtually. You can reduce travel expenses by only meeting in person when necessary. Secondly, with so many people opting to work remotely, you can downsize your facilities. This allows you to save on energy and utility expenses. If you do not own your facility, downsizing can allow you to save money on rent. Lastly, with so many people working remotely, it is much easier to share important documents digitally as opposed to printing. It might not seem like much, but you would be surprised by how much you can save by reducing the amount of paper and ink your branch uses.

ARTICLE: What to Do About Budget Cuts at Your Bank or Credit Union

I sincerely hope that this article has inspired you to tackle budget season. While this might not be your favorite time of year, remember that we are here to help. Should you have further questions about Equips and our cost-cutting solutions, don’t hesitate to reach out. We are in business to help you do your best work. Happy budgeting!

About Equips

Equips is revolutionizing how Banks and Credit Unions manage, maintain, and protect critical branch equipment. Leveraging a network of 500+ vendors, experts at Equips help Financial Institutions respond to equipment problems quickly in one place: Equips. Active management allows Financial Institutions of all sizes to improve operational efficiency, cut costs, and streamline equipment inventory and vendor management. Our groundbreaking solution provides clients across 45 states with better insight and transparency into their critical equipment and enables employees to do their best work. To learn more visit equips.com.

Related Articles