Webinar examines cash automation, recycling

Handling cash is a major challenge for any organization, especially financial institutions with multiple ATMs. In addition, overall transaction numbers are on the decline, while cash deposits are rising. With these factors in play, banks need to be able to maximize the efficiency of its cash management tools. Cash automation and recycling are two methods to do this, as panelists discussed during a webinar entitled " Cash automation: Top trends and tips for a successful cash recycling strategy" hosted by ATM Marketplace and sponsored by Diebold Nixdorf on May 12.

Bradley Cooper, editor of ATM Marketplace, moderated the discussion with panelists Simon Powley, head of global advisory services at Diebold Nixdorf and Matt Dunlap, director of pre-sales banking hardware, Americas, Diebold Nixdorf.

First, Powley discussed some of the four steps of cash automation within branches beginning with teller cash recyclers which can automate 90% of teller transactions. The next step is deploying self-service solutions such as multi-function ATMs with 24/7 deposit and withdraw features. The steps after that are recycling at the self-service channel and new partnership-as-a-service models such as ATM pooling.

One argument against recycling at the self-service channel according to Powley is that the note quality is often poor and no one wants to withdraw one dollar bills that they often deposit at ATMs; however, Powley argues that there are other factors at play here.

"Technology has advanced; we can provide greater capacities to deal with overflow notes and low quality currency," Powley said during the webinar. "Nine out of 10 banknotes are fit for recycling and about 30% of all terminals provide a cash in cash out ration that supports the recycling business case."

While some have pointed out that cash is dying so there is no reason for this technology, Dunlap presented data that dispute this claim. For example, only 7% of Gen Zers and 8% people in total said they would never use cash again, while 48% in total said they would use cash on the same level.

When it comes to actually determining which location to utilize cash recycling, the panelists offered a few tips including:

• Simulate self-service recycling.
• Develop a deployment plan based on expected impact.
• Estimate the financial impact.
• Look at transaction migration efforts, denomination selection capabilities or merchant campaigns.

Click here to listen to the webinar in full for free.