FRESNO, CA, Feb. 21, 2024 (GLOBE NEWSWIRE) — via NewMediaWire – Operational Security Solutions (“OSS”), the premier provider of full-spectrum risk management services with specialization in secure cash management and logistics, compliance services, security consulting, and facility hardening, today released highlights from 2023 operations and its expansion roadmap for 2024 as the company eyes further market saturation on the East Coast and new sector offerings.
With the rapid growth of emerging markets including fintech, cash-intensive, and other high-risk industries, OSS has aligned itself with these industries by expanding their facilities and services in line with demand.
Last year, OSS made significant strides in further establishing its presence as a predominant player on the East Coast. Highlights of those efforts include the opening of a new secure vaulting and processing facility strategically located in Philadelphia, enabling cost-effective service to emerging states like New York and New Jersey, as well as additional market research and onboarding and subsequent training of new staff. These efforts resulted in additional revenue growth from dozens of new East Coast accounts from throughout the region and on average two new Financial Institution relationships added per month. Beyond these new relationships, OSS was able to leverage existing FI and client relationships from its West Coast operations to further bolster its East Coast business.
“While the growth of our East Coast business has been significant – regulatory setbacks and other legal issues, specifically with the rollout of New York’s business licenses, resulted in delays in realizing all of the revenues from some of our new East coast clients,” said Scott Solomon, CEO of OSS. “That said, the work we have done to establish our business on the East Coast, from the research necessary to navigate these new high-risk markets, to the infrastructure we have put in place through the region, we are more than prepared to scale operations in an efficient and profitable manner – keeping to our commitment of the highest quality service for our clients.”
Beyond regulatory obstacles on the East Coast, the entire cash-based service sector experienced additional pricing constraints from larger companies attempting to retain clients and push out competition. Many ancillary financial businesses, including CIT providers, were faced with pressure to continuously reduce prices to maintain their client bases – or go out of business. Despite these noteworthy macro environmental factors, OSS experienced a 47% increase in FI partners and a 45% increase in active accounts during 2023 versus 2022, effectively meeting the fiscal goals proposed by the OSS Board of Directors set at the end of 2022.
In order to support new service offerings on the East Coast, the Company increased staffing by 200% with a large influx of former state and local law enforcement officers. This geographic service expansion paired with the several new service offerings launched by the Company, aided in sustaining revenue throughout 2023. These new services and corporate programs include Bitcoin ATM sweeps, tax payment services for cash-intensive businesses, and secure records storage services. Beyond these, the Company focused on further sales and marketing efforts and expansion of existing West Coast accounts.
Additionally, the Company saw an increase in the number of commercial supply, faith-based organizations, and sports entertainment accounts coming onboard in 2023. Just as what occurred on the West Coast when OSS launched in 2017, new operators working in high-risk industries on the East Coast expressed a need for security consulting, something OSS has long offered as a core service. Accordingly, the OSS Security Consulting division experienced heavy demand for assistance at the beginning of 2023 that gradually tapered off by the end of the year. As a result, calendar year 2023 was another intense year of cash pickups, processing, and depository activity that elevated the total dollars moved by OSS to more than $5 billion with zero loss since corporate inception.
While the growth in OSS client accounts and services offerings was remarkable, market competition and declining prices compelled the OSS executive team to implement several efficiencies to sustain profitability during a period of significant internal investment for East Coast operations. For example, OSS implemented new software that optimized route planning and staff assignments, further solidifying its ability to process all client funds and deliver them to the Fed Reserve within 48 to 72 hours. OSS also streamlined internal operations by outsourcing critical sales and marketing duties in a manner that actually expanded outreach, media presence and the ability to close sales. These actions gave OSS the ability to continue to expand service areas while controlling fixed costs.
Additional Operating Highlights for 2023 Included:
- The secure vaulting and cash processing facility in the greater Philadelphia, PA area gained new financial institution accounts and dozens of new clients throughout the region
- OSS expanded its ATM cash management services to further diversify its service offerings, including traditional ATMs, Bitcoin ATMs, Smart Safes, and Cash Recyclers.
- In order to provide more opportunities to accommodate customers, OSS partnered with an electronic payment processor for both B2B and B2C transactions including a tax authority program that enables high-risk businesses to pay their taxes with cash
- OSS implemented new client relationship management web-enabled software that advanced route planning capabilities, along with a comprehensive online client portal that enables clients to seamlessly schedule and track cash movements, while OSS is able to provide on-demand reporting capability
- The company announced its exhibition at the EXCEL 22 convention in New York to network with credit unions and financial institutions and discuss breaking into banking for high-risk industries
- OSS attended CrossState Reconnect Annual Convention to meet with high-risk businesses, FIs and credit unions to discuss OSS’ solution-driven offerings
- The company exhibited and sponsored at the PBC Conference in Washington, DC in September where its CEO Scott Solomon was featured as a panelist on security, cash logistics and management, and equipment options to reduce the probability of theft. Subsequently the Company was recognized as a “Top Business Solutions” Company by the industry-leading conference
- OSS continued to be recognized by leading media outlets as subject matter experts on the evolving high-risk financial service sector such as: The Guardian, Benzinga, Corporate Compliance Insights, Greenway Magazine, and The Baltimore Business Journal.
Stated Goals for 2024:
- Expand the staff and supplemental equipment needed to service numerous new and existing contracts secured for NY and NJ clients that will go-live in Q1 and Q2
- Continue expansion of East Coast markets, with a focus on MD, WV, VA, DE, and DC
- Evaluate strategic partnerships that can enable new market penetration in regions not currently serviced by OSS. As appropriate, consider the establishment of new vaulting facilities and intermediate processing depots
- Maximize the benefits of new route planning software by streamlining service routes; shortening the time-to-deposit; and improving report generation
- Pursue new marketing opportunities by participating in more conferences and industry events – especially events that target security companies and the industries they serve
- Gain new partners and service offerings that support high-risk and cash-intensive industries and their ability to conduct commerce
- Recently, OSS has partnered with the Federal Reserve Banking system as a key player in their e-manifest program aimed at streamlining branch deposits and withdrawals, as well as moving away from paper documentation. OSS plans on expanding participation during 2024 in order to help further expand the new digital system.
- OSS plans to pilot a SmartSafe program specifically for Financial Institutions that sources machines, installs them, connects them to compliance platforms, and integrates them with OSS’ CIT service. The program also offers OSS-funded financing and leasing options.
OSS offers industry-leading security offerings, cash intensive and high risk-specific financial service solutions and relationships, connecting highly regulated businesses that struggle to get banking services with financial institutions that have specific programs designed for the industry or organizations that are unable to be serviced by certain banks. Notably, OSS is the only risk management company specializing in secure Cash-In Transit services that boast a no-loss record to date. To learn more about OSS visit www.opsecsolutions.us.
About Operational Security Solutions
Operational Security Solutions (OSS) was assembled in 2017 by professionals that have spent their previous careers in law enforcement, federal service, and military special operations — but have now founded a security and risk management company that supports compliant relationships with financial institutions and their high-risk and cash-intensive clientele.
Public Relations Contact:
Kyle Porter
Virgo PR
oss@virgo-pr.com
