Easier Way to Manage Fixed Assets of Bank: Asset Management System

A bank, where we deposit our money or the institution that lends us a loan. Those financial institutions that accept deposits from the public and creates credit.

According to Wikipedia, a bank performs lending activities either directly or indirectly through capital markets. The banks are regulated in most of the countries because of their financial stability in a country.

According to Global Findex, the stats say that -

1. There are 1.2 billion adults have obtained their bank accounts in 2011, including 515 million, since 2014.
   
   
2. From 2014 to 2017, the share of adults who have an account in a financial institute (a bank), raised globally from 62% to 69%.
   
   
3. The same share raised from 54% to 63%, in developing countries.

There around 25000 banks around the world, amongst the Top 10 Largest Banks in the World includes,

• Industrial and Commercial Bank of China, China Construction Bank Corp., Agricultural Bank of China, and Bank of China, China holds Top 4 positions in the world with their Total Assets of worth $13.79 trillion.
  
  
• Mitsubishi UFJ Financial Group, Japan at 5th position with Total Assets of worth $2.81 trillion.
  
  
• JPMorgan Chase & Co., the United States at 6th position with Total Assets of worth $2.62 trillion.

Also Read: What is Cloud-based Asset Management? What are its Benefits?

What are the Fixed Assets of a Bank?

Fixed assets are the tangible assets or property, plant, and equipment that are purchased for long-term use and are not likely to be converted into cash easily.

Banks includes general asset just like any other industry, a bank can have a different type of assets, including physical assets or fixed assets such as equipment and land.

These physical assets or fixed asset of a bank will include:

• Building
• Land
• Vehicles
• Furniture
• Office Equipment
• Computers
• Fixtures and Fittings
• Plant and Machinery
• Audio/Video Security
• Automated Teller Machine (ATM)
• Cash Deposit Machine (CDM)
• Self Service Passbook Printer (SSPBP)
• Queue Management Equipment
• Cash Counting Machine/Money Counter

What is Fixed Asset Management?

Fixed asset management is an accounting process that involves tracking of fixed assets to fulfill the purpose of financial accounting, preventive maintenance, theft deterrence, etc.

The process is a systematic way to develop, maintain, upgrade, and asset disposal in the most cost-effective manner including all costs, risks, and performance attributes.

It assists in increasing the asset's life at all stages. It also improves the quality of the asset and enhances the process of managing fixed assets of the bank.

The fixed asset management process keeps the details and records of each asset in order to maintain it. Moreover, it is beneficial for providing more control over the banks' fixed assets.

How Asset Management System makes it easier for a bank to manage its Fixed Assets?

Fixed asset tracking is the method which enables real-time tracking over the movement of IT devices, equipment, and machine of a bank regardless of where they are located or placed.

Fixed asset tracking is an important aspect of fixed asset management.

The tracking software can scan the entire bank for the management of its fixed asset and keep its records in the database of the organization. Some of the tasks performed by fixed asset tracking software are:

• Inventory Management
• Tracking of Assets
• Maintenance Management
• Streamline the daily operations of an organization

Also Read: Effective ways to control movement of assets in and out of facilities

Importance of Fixed Asset Management System for a Bank

1. Accurate Asset Information

The asset manager can access all the information of all the fixed assets of the financial institution. They can tag all the assets with RFID tags, BLE beacons, etc. and track them from wherever they are located or placed to whomever (the branch) it is assigned.

2. Real-time Information

All this information about the bank assets is visible in real-time i.e., at what time where they are present and whom they are assigned to. So that the asset managers can take better decisions and inform the employees accordingly. This way you can know the exact location of each asset & minimize asset loss or theft.

3. Scheduled Maintenance

Scheduled maintenance is one of the most important benefits and features through which you can know about any unexpected breakdown. These breakdowns can be very dangerous and can make the bank, as well as the public, suffer a lot. However, the asset management system can assist you, avoiding these types of mishappenings.

4. Automated Transfer of Assets

With the software, the asset managers get automated access to the transfer of assets. This transfer of assets can be from one branch to another or in between different departments within the same branch.

5. Eliminating Paperwork & Human Error

Since everything is managed on cloud-based software, there would be less paperwork that will avoid human mistakes. Digital documents can be searched & stored easily. They are faster to fetch and when every document is online there is no chance for misplacement.

6. Quick Asset Information via Mobile

The asset managers will receive all the data on their computer systems or on their mobile. As all the data is on the cloud-based platform, it is efficient and easy to manage all the assets. The reach for the banks' assets in increase with the mobile application of the software.

7. Automated Depreciation Calculation

The asset management software will help the asset managers to generate compliance accounting reports. With the help of the software, proper depreciation of assets for their useful life can also be calculated easily.

8. Maximum Return on Assets

An asset is monitored continuously with the help of an asset management system to increase its life and when an asset works properly it obliges to give an increased return on investment. Therefore, the software will help the bank authorities to not only keep track of their fixed assets but also results in enhanced profit.

Also Read: How self-audits can ease asset physical verification

Conclusion

Banks or financial institutions include several fixed assets under them, whether they are purchased or procured. These assets can be monitored and tracked from their movement to their maintenance and their audits.

Asset management is a useful software from every aspect which is fully-fledged with features that assist in gathering all the details and data of all the fixed assets on one platform.