Self-service Cash Collection: How to use Automated Deposit Machines in banking and retail

It is no secret that for many retailers and financial institutions, the quest to create the optimal cash circulation model in the organization is a real headache. The problem is to deposit the cash surplus accumulated at retail outlets or bank branches during the working day.

The solution could be the automation at the self-collection points when representatives of various organizations (credit, banking) and trade enterprises make deposits through special devices, which automatically and instantly reflected on their bank accounts.

How do self-collection and automatic deposit machines work?

The main advantages of self-collection are simplicity and safety. Automatic deposit machines, where the funds are physically deposited, must operate reliably and do not cause difficulties for ordinary employees of the bank branch or the outlet, who need only minimal training to work with cash. Such a decision is most suitable for those institutions that are working with large amounts of cash. In this case, the need for frequent collection and the relatively high cost of CIT service can be a driving force to use electronic cashiers of this type everywhere.

Due to the high speed of handling the banknotes and relative technological simplicity, ADM is the optimal solution for reducing the time costs (and hence human resources) for recalculation, validation, processing, storage, and cash collection. The certified safe, similar to that used in most ATMs, allows storing the cash within a few days before the CIT brigade’s arrival. ADMs should be installed in back offices, where only authorized employees of the organization or the collection service have access. The device allows depositing cash at any time of the day and instantly transferring funds to the customer’s bank account. Thus, the responsibility related to storage or transportation goes to the bank since the money in the legal sense is already in the bank account.

Why do you need it?

The largest private bank of India, ICICI Bank, and ATMs offer its customers services of more than 1200 automated deposit machines, comparable to 10% of the total number of self-service devices. The bank analysts estimated that the introduction of ADM saves up to 20% of the client’s time when depositing funds to the account while increasing the convenience and security of the operation, which is directly relating to amplified customer loyalty. However, the most important advantage of using such devices was the redistribution of customers’ flows, which did not require a bank employee’s assistance to make a deposit. Individuals and representatives of small and medium-sized businesses got the opportunity to make various payments at their own convenience. Other banks are eyeing the implementation of this already approved solution, especially because of the global trend to cut traditional branches of credit and financial institutions in recent years. Given the relatively low cost of deposit machines compared to ATMs, for emerging markets, it really looks like a worthwhile compromise and a solution to improve customer service while optimizing costs.

Advantages of using ADM:

– Decrease in operating expenses. Collection optimization through more effective planning, less time, and staff costs (cashiers, operators, staff collectors).

– Increase the level of security while cash depositing. ADM automatically conducts cash validation and recalculation, excluding the possibility of operational errors on the part of the contributing employee. Devices are counting bills at a rate of 10 or more per second, equipped with sensors, and can reject counterfeit, dilapidated, and suspicious notes. Money transfer to the client’s account occurs instantly, minimizing all the risks of criminal nature for the depositor.

– Development of self-service channels. By expanding the ADM network, banks increase the independence of their clients. Besides, at these self-service points, customers can be provided with other services (for example, the organization of various payments), which leads to additional commissions.

Self-collection for retailers

Large retail chains introducing automatic deposit machines win the competition for many reasons. The following operational advantages are available to them:

–          Instant money transfer to the current bank account without loss of time for transportation, validation, and recalculation.

–          Filing of revenue at a convenient time without the need to adjust the organization’s schedule with the bank’s working hours.

–          Optimization of staff time and reduced operational errors due to automatic recalculation, validation, filling of accompanying documents, and preparation of cash for collection.

–          Improving the security of deposit operations because the funds placed in ADM are considered accepted by the bank.

Technological solutions for self-collection can be used by large retail chains and insurance and travel companies, car dealerships, construction, wholesale stores, and other institutions.

Solution for cash collection service

CIT services can also significantly simplify and optimize part of their operations by introducing automatic deposit machines. Decisions to implement ADM becomes an opportunity to make more flexible business proposals to small, medium, and large businesses. The general advantages for cash collection services are:

–          Cash collection from several companies at one point (shopping malls, distribution centers, large stores, etc.).

–          Expense optimization due to rescheduling of superfluous drives (reduction of transport and personnel costs).

–          Increase the cash storage security.

–          Additional income from rental devices and maintenance.

An excellent example is the partnership agreement between the Dubai-based bank Standard Chartered Bank and the collection service Transguard Group, which offers its customers “smart” ADM machines. Transguard Group provides full outsourcing of cash collection for the bank: from installation and maintenance of equipment to planning and optimizing cash collector teams’ departures.

“The main advantage for our customers is the improved quality of money circulation,” said Abdullah Al-Hashimi, Transguard Group CEO. “When funds are deposited using our solution, they are automatically credited to the client’s account in real-time, and do not wait for collection, delivery to the bank, and validation.”

According to Al-Hashimi, the bank is not liable for cash since it is placed in a so-called deposit box, virtually eliminating the possibility of theft or loss. Besides, “smart” ADMs really help reduce the number of visitors in the bank’s branches since the clients directly address the self-service points. This allows the bank to increase operational efficiency and abandon some traditional branches, thus reducing costs.

The company BS/2 is offering integrated self-collection solutions for financial institutions and retail chains—Specialized system SmartSafe.iQ allows managing the work of ADM and receiving comprehensive analytical reports. System integration with CashManagement.iQ solution allows creating a single processing infrastructure of the cash flows data at all CIT points.  Ask our specialists to get detailed advice on how to introduce automatic deposit machines in your organization.