Diebold Nixdorf Eurasia Partners Summit: Cash Flow Growth and Customer Behavior Analysis

In 2018, the total global amount of cash grew by 0.7%, and the most significant growth was recorded in Europe (by 3.2%) and America (by 2.9%). Experts predict that the share of cash payments by 2021 will increase by another 2.6%, and the largest growth is expected in Asia (excluding China) – up to 4.6%. These and other most actual financial industry trends were presented at the annual partner summit of the banking and trade equipment world leader Diebold Nixdorf.

Cash turnover

During the conference, the company’s vice-president in Central and Eastern Europe, Joachim Struck, focused the attention on the banking industry development features in different countries. Globally, the number of bank branches in 2016-2017 decreased by 0.6%, with the most significant reduction in Europe, while in Asia it increased by 1.6%. These facts disprove banking services transfer into digital space and the massive refusal of cash payments.

Despite the growing popularity of non-cash payments, cash continues to hold its position. This is evidenced by the increase in the number of cash withdrawals at ATMs (compared with 2017 in the world by 0.7% and in Europe by 3.2%). The share of cash payments is more than 50% in 17 out of 21 European countries: in Malta – 92%, in Greece – 88%, in Spain – 87%, in Germany – 80%, in Lithuania – 75%, and in Latvia – 71 %. The lowest rates are in Estonia (48%), the Netherlands (45%), and the UK (42%).

Focus on customers

“We are watching the process of adapting the market to the consumers’ needs. Despite expert forecasts regarding the refusal of cash payments in favor of non-cash, the statistics of recent years show that it is too early to talk about this. The financial market is trying to adapt to client requirements and offers various electronic and physical payment options. Today, customer retention is one of the main business objectives. That’s why it is important to analyze consumer behavior and improve the quality of service,” says the Chairperson of the Penki Kontinentai Board, Idrakas Dadašovas.

The story of Uber (one of the most famous startups in the world) was highlighted at the conference as an example of its loyalty and flexibility. Uber, which only supported electronic payments at first, later offered customers to pay in cash to satisfy drivers and passengers’ demands. According to statistics, money receipts after the introduction of cash payment tripled.

Individual approach and direct marketing

During the panel discussion, the Penkių kontinentų bankinės technologijos (BS/2) Head of the Strategic Partnership, Kornelijus Šišla, said that in the modern world, it is not enough to be just an equipment supplier to retain the leading positions in the market. Companies must offer solutions that meet clients’ strategic plans; therefore, it is essential to know each of them’ specifics and needs. Kornelius Šišla noted the special importance of an individual approach.

The focus of the presentation by Kirill Solntsev, Deputy CEO of the Russian processing company MultiCarta, was directed to direct marketing in the financial sector. In his opinion, today, the client must feel constant attention and exclusivity. For example, when filling out an application to purchase a new car, the client is guaranteed to receive a special offer from a bank and an insurance company. According to Kirill Solntsev, the most important thing in the modern world is to use the existing methods of attracting customers correctly and looking for new ones that the consumers often offer.

Banking Digitalization

Joachim Struck noted that even the banks have not yet fully understood the meaning of digitalization at this stage of development of the financial industry. Whether it is an expansion of service range in the ATM (individual offers, new functionality, for example, currency exchange or additional payments), or the reduction in the number of bank branches and the transition to digital service is up for debate. However, a developed infrastructure is necessary to change service provision format, but it is premature to talk about service digitalization if it does not exist.

The Diebold Nixdorf Partner Summit is an annual event attended by 120 delegates from 30 countries, including a large delegation of the Penki Kontinentai Group. The event’s purpose is to discuss the results of last year and strategic plans for the future.