Mastering Cash Management, Part 1: The CIT Provider Dilemma

For many financial institutions, cash handling is a necessary but costly operational burden. Ensuring that branches, ATMs, and commercial customers have the right amount of cash on hand—while minimizing excess inventory—requires a careful balance. That’s where Cash-in-Transit (CIT) providers come in, transporting cash securely between vaults, branches, and retail clients.

At first glance, outsourcing cash logistics to a CIT provider sounds like a simple solution. But for banks and credit unions, managing that relationship is anything but easy.

The Challenges of CIT Management

1. Limited Pricing Transparency & Unexpected Cost Increases

CIT pricing models are complex, with fees tied to:

• Number of pickups/deliveries per week

• Distance from cash vaults

• Insurance and liability costs

• Fuel surcharges (which fluctuate unpredictably)

Financial institutions often find themselves locked into long-term contracts, only to see prices increase year over year without clear justification.

2. Inconsistent Service Levels & Performance Issues

CIT providers operate vast logistics networks, and service quality varies by region and provider. Financial institutions commonly experience:

• Missed or delayed pickups that leave branches with excess cash or ATMs underfunded

• Poor communication and customer service, making issue resolution a nightmare

• Inflexible scheduling, with little room for adjustments based on real-time cash demand

3. Compliance & Risk Management Headaches

Regulations surrounding cash transportation, storage, and insurance liability put financial institutions at risk if their CIT provider fails to meet compliance standards. Common concerns include:

• Chain-of-custody tracking – Ensuring accurate records of cash movements

• Liability disputes – Financial institutions frequently find themselves in disputes over missing funds, with CIT providers claiming no fault

• Security concerns – Armored truck robberies, employee theft, and fraud remain ongoing threats

4. Cash Forecasting Inefficiencies

Most CIT providers offer cash forecasting services, but these are often based on outdated models that don’t account for shifting consumer behavior, holidays, or unpredictable surges in demand. As a result:

• Branches hold too much cash, increasing insurance costs and idle funds

• ATMs run out of cash, frustrating customers and impacting brand reputation

• Commercial clients receive inaccurate deliveries, causing operational headaches

So, What Can Financial Institutions Do?

To avoid being at the mercy of their CIT provider, financial institutions should:

✅ Regularly audit CIT invoices – Ensure billing matches contract terms and push back on unjustified fees.

✅ Negotiate service-level agreements (SLAs) – Clearly define response times, missed pickup penalties, and dispute resolution processes.

✅ Implement smarter cash forecasting tools – Leverage data-driven models (like BCOS’s proprietary algorithms) to optimize cash levels and minimize CIT expenses.

✅ Diversify providers where possible – If one CIT provider struggles with performance, having alternatives can help maintain cash flow reliability.

How BCOS Can Help

Managing CIT relationships doesn’t have to be an operational burden. At BCOS, we help banks and credit unions optimize cash logistics, reduce CIT costs, and ensure service providers meet expectations—so you can focus on what matters most: serving your customers and members.

Ready to take control of your CIT operations? Contact us at info@branchcos.com to learn how we can help.