By : Neill Malcolm Harris
December 15, 2015 08:30 AM
Cash recycling is taking off as banks find it will enable big savings, drive revenues and deliver better customer satisfaction. Recycling means ATMs can accept, validate, sort and store banknotes easily and safely. One of the biggest advantages for banks is that notes are reused or recycled which means large reductions in cash replenishment and cash-in-transit costs. Cash recycling also has an impact on the branch. If all cash transactions are handled by the ATM, then tellers can focus on other things, such as performing more revenue-driving activities. Security is another major benefit as tellers no longer handle cash, reducing the scope for attacks. Customers benefit as they can enjoy 24x7 access at the ATM. Errors are reduced, meaning dispute conflicts are less common. The benefits are simple, but it’s a more complex set-up than meets the eye. Recycling has to comply with market-specific legislation around things like money laundering. So, for example, the recycler has to be able to recognize fake banknotes and deal with them accordingly by taking them out of circulation. But the challenge goes beyond mere compliance issues. All the benefits of cash recycling can often only be fully realized when the bank optimizes its broader cash management processes. Deploying new hardware on its own is simply not enough to achieve all the possible benefits of cash recycling. A complementary suite of solutions including the right cash management software, branch consulting services and hardware will ensure the bank is maximizing the cost savings and revenue-driving potential. Branch consulting services not only help the bank understand consumer flow and behavior but also help to establish the right mix of hardware, allowing banks to migrate transactions away from the teller line and, in turn, enabling tellers to be put to better use. This varies for each bank and each branch, of course. The software must meet the needs of the bank and gel with other systems already in operation. So for example, it's important banks work with their ATM provider so they can make data available from the ATM - such as log files and status information. That enables the bank, on an ongoing basis, to further optimize the system. For instance, to maximize the reduction in cash-in-transit costs, the software, hardware and branch teams all need to be working together in harmony to optimize the performance of the cash replenishment process. Cash recycling is a great boost for banks, but it also requires a thoughtful approach to implementation.