2024

The use of cash is on the verge of extinction.  In fact, for Germany in particular, it can be said that coins and notes have a future. Almost 60% of transactions at the checkout are paid for in cash. However, to ensure that this trend continues, cash players need to rethink their approach towards modern cash management. With this in mind, CashCon invited participants to examine current challenges, tangible developments, and profitable solutions.

Cash at the cutting edge

How do financial institutions and retailers handle cash processes today and tomorrow? How do you create more efficiency and security? How can costs be reduced? And do new ideas and solutions deliver what they promise? The CashCon conference, hosted by GS1 Germany and the EHI Retail Institute in cooperation with ALVARA | Digital Solutions, provided a platform for participants to explore these questions. The conference took place in Cologne from 23 to 24 January 2024.

Managers and specialists from the banking sector, retail and cash-in-transit companies attended the event to exchange ideas, discuss hurdles and find solutions for the challenging cash logistics – successfully, in our opinion.

ATM Demolitions – Security Potential and Automation

The title of CashCon is also the program and it was only logical to address the topic of ATM blasts. Attacks on ATMs have steadily increased in recent years. Various speakers presented innovative approaches to deter perpetrators. Gerrit Stehle from Elephant & Castle Capital GmbH, for example, presented the so-called digital colour bomb. A security net is created by processing tracking information into serial numbers, which is invisible to attackers and surrounds the cash. This ensures that the cash is protected from theft. Our CIT solutions and ALVARA ICC provide support with automated and integrated interfaces.

Although structural specifications and technical security measures are the main countermeasures against ATMs being blown up, digital approaches are also justified. Software can be used as an efficient tool to protect ATMs. It offers automated alerts and risk classifications based on heat maps.

Cashback in Retail – A Rising Trend

During the presentation by Niko Korakianitis (REWE-Zentralfinanz), the sales representatives were particularly interested in the experiences and challenges of cashback in retail.  It was noted that cashback continues to gain importance, leading many retailers to offer this option as an alternative to financial institution ATMs. The high fees on transactions were identified as a critical issue from the customer’s perspective. The topic sparked a lively discussion with the audience.

The concrete implications for retail are still speculative. However, it is likely that this development will also affect cooperation with cash-in-transit providers. On one hand, the amount of money collected may decrease as fewer banknotes will remain in the branch. On the other hand, if cashback continues to grow, it may increase the demand for banknotes, which could lead to a change in supply requirements. For instance, smaller notes may need to be ordered. We are always pleased to gain practical insights at trade fairs and congresses, which help us to adapt and improve our solutions.

We organise our annual BargeldDialog Handel, an expert meeting specifically for representatives of retail companies, to facilitate this. This year’s meeting will take place on 25.04.2024 in Karlsruhe. Find out more here!

Sustainability – Solutions at a Glance

The discussion on sustainability in the cash industry centred around optimising logistics and reducing packaging.  Loomis, a cash-in-transit company, is currently working on reducing packaging waste and CO2 emissions by piloting the use of reusable safebags instead of disposable ones.

The European Central Bank (ECB) has been prioritising environmental sustainability for several years. In its study on the ecological impact of euro banknotes, it identified the main factors as electricity consumption of ATMs, transport, consumables, paper production and other factors. Gerrit Stehle used this as a starting point and presented an innovative proposal to reduce Bundesbank’s transport by using banknote serial numbers.

Conclusion

The two-day event covered a range of exciting topics. The presentations and discussions were enjoyable, and it was clear that digitalisation, automation, and sustainability are becoming increasingly important in their respective areas. However, it was noted that the availability of numerous solutions is not always recognised. ALVARA Interactive Cash Control provides modern cash control solutions for cash-in-transit companies, retailers, and banks.

The platform also offers flexible integration with cash recycling processes in both front and back office operations. ALVARA ICC and the ALVARA Smart Monitoring Platform are designed to keep cash management up-to-date with the latest trends.

Cash processes can be made easier with digital software solutions. Let’s discuss your options together.

They usually come at night, cause considerable damage to buildings and equipment, and steal millions in total. We are talking about criminals who attack ATMs. The figures for the last two years show that these are not isolated incidents.

Negative records for ATM explosions

3, 2, 1, bang – and the ATM goes down. It is easy for experienced criminals to steal the inside of an ATM. Using a crowbar and an explosive charge, they can gain access to the valuable contents in just a few minutes. What sounds like something out of a thriller is increasingly becoming reality.

In Germany, the Federal Criminal Police Office (BKA) recorded around 496 attempted and completed ATM bombings in 2022. This is the highest number since records began in 2005. The picture for 2023 is hardly rosier. A survey by the German newspaper Handelsblatt of the state criminal investigation offices showed no significant decline in the number of attacks last year.

If you break down the figures, there are attacks on ATMs every day in Germany. According to the BKA, the losses amount to a good 30 million euros.

ATM removal – faster than ever before

These costly attacks on machines, and in some cases branches, are certainly a reason for banks to reconsider one or two ATM locations. But only one. The slow decline of bank branches over the years is also contributing to the rapid decline of ATMs.

In 2022, the number of ATMs fell for the fourth year in a row – more than ever before. The decline of just under five per cent calculated by Barkow Consulting meant the end of a good 2,500 machines. Speculation about the future is already rife. Handelsblatt, for example, reports that experts believe the rate of decline could accelerate in the future.

Traditional cash supply secure – but changing

There is no end in sight for cash itself. Even though the number of ATMs is decreasing, their popularity is not diminishing. This is shown by the Deutsche Bundesbank’s Monthly Report for January 2023, which we summarise in our blog post “Cash supply secure – and efficient!”. In addition, more and more shoppers are taking advantage of cash withdrawals at checkouts.

So there is no need for citizens to worry about these developments: The cash supply in Germany is still secure. However, we need to look further afield and include the situation of cash stakeholders such as financial institutions, retailers and cash-in-transit companies in the ongoing discussion. After all, cash management can be expensive, time-consuming and challenging. Retailers and cash-in-transit companies should therefore adapt to the changing cash processes.

Embrace digitalisation!

The fact that digitalisation can, as it so often does, provide a remedy comes as no surprise to most managers. But what is stopping them? In 2023, for example, the retail sector in Germany was a good 30 points below the average digitalisation index. One reason for this is the relatively high proportion of smaller companies. But transformation in general, and software solutions in particular, also offer opportunities for them, most of which can be implemented with little effort.

Intelligent POS systems such as our ITR POS, for example, are a sensible first step on the much-needed road to digitalisation, overcoming current hurdles and, above all, delivering efficiency gains. They help retailers to cope with the changes in cash processes and enable them to deliver at the checkout. Time savings, transparency and security are also provided by another solution: our Interactive Cash Control (ICC). It maps the entire cash cycle and ensures optimum control and documentation of all processes, regardless of whether hardware-based cash processes are in place in the retail stores or not. In this way, the cash supply can be secured – efficiently and in line with the times.

 Looking for optimised cash processes? Let us work together to find the right solutions for your business!