ATMs have a great impact on banks that regularly receive large cash deposits from customers. They allow for quick deposits and develop a means to handle customer concerns quickly and efficiently. These days, developing new ways to transform physical branches is a top priority for banks, as the industry itself changes significantly over time. ATMs can help with the addition of new systems that are helpful in changing the way tellers do business. One additional method that can aid these institutions is cash recycling, which can make the process of handling currency much less expensive for branch managers.
Cash recycling is not an entirely new concept. Basically, instead of delivering a large stack of cash to businesses that need the money every day, recycling takes the cash deposits and sorts them in preparation for use in the machines after being taken out at the end of the night. Essentially, the process allows cash to be placed back into the bank's circulation, without completely requiring new bills.
Cash recycling has immediate benefits for bank branches, according to ATM Marketplace. Once a bank figures out an average of how many cash deposits it receives on a daily basis, it can lower the amount of cash it needs in an ATM per day. Lowering the amount of cash handled effectively brings down its cost both in terms of security and labor. Overall, it creates savings opportunities for banks without having to cut corners. In addition, by having less cash on hand on a daily basis in an ATM, insuring the machine from robbery and other incidents costs less than before.
More importantly, cash recycling remains essential due to an increase, not a decrease, in the use of hard currency in daily transactions. As payments expert Richard McMurdo notes, the volume of bills in circulation has increased around 5 to 10 percent per year in countries like the United States and Canada. More importantly, there is a large portion of the population that is underbanked or unbanked, around 10 percent. These people have to use cash as the primary way of performing transactions and payments. With this in mind, cash recycling becomes far more useful, both in banks and in other businesses as well. Technology has created a greater need to use these recyclers as a way to ensure that cash on hand at any given business remains consistent. ATMs gain the most from this, but other places stand to get a lot of help from that service.
April 1, 2015