As businesses and financial institutions seek greater efficiency and security in handling cash, automation technologies are emerging as a critical solution. This article delves into the trend of cash automation, its benefits, challenges, and the future outlook for this transformative technology.

Cash automation refers to the use of technology to streamline and manage cash handling processes. Most of us are already very familiar with one of the original cash automation devices, the automated teller machine (ATM) which was introduced in the UK in 1967. However, the focus of this article will be on cash recyclers. These machines accept, validate, and dispense cash, effectively recycling currency within the system. They are commonly used in bank branches as well as retail environments to reduce the frequency of cash replenishments and cash counting.

Because cash remains a vital form of payment, we are seeing more and more cash accepting devices appear as an adjacency to card payment kiosks and food ordering totems, as well as many other self-service consumer devices.

While the drivers to move to cash automation are clear for a financial institution (cost savings, enhanced security, regulatory compliance, etc.), how does the consumer or employee benefit?

Consumer Convenience

Automation satisfies all generations with its ease of use.

• Provides a quicker and more reliable means of payment.
• Reassurance in knowing that money received has been systematically validated.
• Avoidance of teller queues for simple cash transactions, e.g. deposit of piggy-bank savings.

Staff Efficiency
Manual cash handling is labour-intensive and prone to errors.

• Reduce the time need to manually count and verify cash.
• Minimise the risk of human error while counting and moving cash between safes.
• Ensure compliance by maintaining accurate records and facilitating easy reporting.

The trend of cash automation is expected to continue to grow as businesses and financial institutions recognise the importance of its presence for their customer’s. By levering cash automation, and not just at an ATM, financial institutions are able to “bring banking to the customer” by positioning such services where consumers shop, dine, and are entertained. For this reason, ensuring that technology is not only reliable but also 100% operational, is an essential part of the transformation strategy.

Because cash automation is also impacting consumer behaviour, it is vital that financial institutions also invest in adjacent solutions that can not only properly maintain devices, but most importantly, ensure their operational availability for a positive customer experience. 

Maintenance and Upkeep
All mechanical devices require regular maintenance to ensure maximum performance. You wouldn’t pass up on your car’s oil change, would you? Doing so may lead to very expensive mechanical repairs. While the impact on cash automation devices is not so severe, having a maintenance contract in place provides peace of mind knowing your technology investment is appropriately maintained.

Look for a comprehensive maintenance agreement that focuses on prolonging your investment’s lifecycle through proactive service management.

Currency Integrity
Through timely and regular currency template updates, devices maintain their currency integrity by adhering to the latest in banknote recognition. This provides the consumer with reassurance, and financial institutions with a stronger brand image, as well as a reduction in time needed for processing cash.

Continue the road of proactive service management with the ability to manage devices remotely. Enabling remote device management, creates a vehicle to provide faster and more efficient updates through a secure environment. Without this capability, there may be additional costs to rollout in a timely manner, or a trade-off with updates against cost savings. The most efficient means of maintaining the integrity of devices is with an unlimited supply, and efficient execution of template updates.

Software Updates
Maintaining software is not a “nice to have”, but rather a “must have” in today’s cyber-volatile world. Quite often, regular updates can be over-looked due to lack of infrastructure and/or resource challenges for the frequent deployment of software. Making this a priority saves time, effort, and cost, in the long-term. 

While currency template updates are important in maintaining the device’s integrity, software updates will maintain its performance and security without the need for staff interruptions, onsite technician visits, unnecessary cash in transit (CIT) costs when dual custody is required, and most importantly, limit consumer disruption.

Cash automation is transforming the way businesses and financial institutions handle cash, offering numerous benefits in terms of efficiency, accuracy, and security. In the past, counting and processing cash was a manual task. With the introduction of cash technology, this is now a reportable automated process that reduces labour costs.

The future of cash automation looks promising, with advancements in technology and increased adoption across various industries, such as hospitality, food and beverage, cash management is increasingly becoming more efficient. As the trend continues to evolve, cash will continue to play a crucial role in our lives.

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