CASH RECYCLING TEN THINGS TO KNOW ABOUT CASH RECYCLING TECHNOLOGY

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1 CASH RECYCLING TEN THINGS TO KNOW ABOUT CASH RECYCLING TECHNOLOGY

2 TEN THINGS TO KNOW ABOUT RECYCLER ATMs If there s one thing we can thank the new millennium s gig economy for, it s a steady increase in freelance and short-term workers being paid in cash which they then have to deposit into their bank accounts. Since 2011, cash deposits have seen a steady uptick each year, with Retail Banking Research highlighting a 55% increase in ATM cash deposits between 2011 and Despite the availability of ATMs with intelligent deposit modules that can accept notes or cheques directly into the ATM, many financial institutions and ATM deployers are still using envelope deposit ATMs. To see even further benefits from their ATM channel financial institutions around the world are investing in cash recycling technology, but before you take the leap into replacing your ATM fleet, let s think about some of the questions you might have.

3 1. HOW DOES CASH RECYCLING WORK? Cash recycling allows financial institutions to deposit and dispense from the same cassette in a recycling ATM. The cassette in a recycling device is more advanced the mechanism is adjusted so it can dispense and deposit cash to and from a single cassette, allowing financial institutions to make the cash-in-transit cycle longer. For a financial institution, it means efficiency, cost saving and security.

4 2. DOES ATM LOCATION MATTER? It does, but the important thing here is to get accurate data about how your ATM is being used. NCR is the only vendor in the market that offers a consultancy-led partnership and thorough data analysis of your ATM network to help you understand if this investment is right for you. As long as there s a need for both dispense and deposit functionality for the specific ATM location you re considering, it should be a good candidate to upgrade or replace with a cash recycler. Financial institutions should think very carefully before introducing cash recycling in high cash dispense-only locations this function can be better served by a cash dispenser. Therefore, it's important to carry out an on-site assessment through detailed transaction data collection and analysis.

5 3. DO FINANCIAL INSTITUTIONS AND INDEPENDENT DEPLOYERS NEED TO CONSIDER DIFFERENT THINGS? Faced with the twin challenges of aging technology and a more demanding consumer, deciding where to start when creating an effective cash management operation can be overwhelming. By following three simple steps, financial institutions and independent ATM deployers can minimize the risks associated with the required changes, and develop a more profitable ATM channel. These steps are: Preparation Pilot Ongoing life cycle management All of these steps should be supported by ongoing performance data analysis. Read our cash recycling white paper for more information about these steps.

6 4. WHAT ARE THE BENEFITS OF IMPLEMENTING CASH RECYCLING ATMs? Cash recycling means financial institutions and independent ATM deployers can offer their customers larger deposit and dispense amounts, depending on the hardware deployed. It is all about offering a premium customer experience and increasing customer satisfaction through the self-service channel. Financial institutions also continue to demand higher availability, improved performance, increased security and service efficiencies. To be successful (and reduce the need for maintenance calls), cash recyclers must be able to handle lessthan-perfect note quality, a mix of polymer and paper notes and new ATM security features all while remaining compliant with the latest ATM security standards. Operational efficiencies coming from cash recycling are extremely important and play a strategic role in branch transformation initiatives. Financial institutions should consider that cash recycling ATMs can cater for the needs of small business enterprises, offering secure access to merchant service-based facilities.

7 5. HOW DO RECYCLING ATMs DELIVER ROI? This varies, but FIs and IADs can save on cash-in-transit costs sometimes by as much as 50%. But the real win for branches is that they can increase their ratio of sales to fulltime employees; as staff reduce the time they spend processing and handing cash in the branch, they are freed up to focus on delivering great customer service and revenue generating activities.

8 6. CAN ATMs BE RETROFITTED FOR CASH RECYCLING, OR IS REPLACEMENT ALWAYS REQUIRED? Depending on the ATM currently in place, NCR offers both full-function cash recycling ATM replacement, or an upgradeable module that simply requires a cassette-swap as and when a bank is ready to roll out cash recycling functionality. This approach ensures we give customers choice and flexibility that helps them future-proof their investment.

9 7. IS CASH RECYCLER MAINTENANCE MORE EXPENSIVE THAN ATM MAINTENANCE? Cash recycling is a more complex technology, but costs to maintain can vary depending on: ATM configuration Transaction volumes Consumer behavior Note quality Service contract

10 8. HOW DO I ADJUST MY CASH MANAGEMENT SOFTWARE FOR RECYCLING ATMs? The combination of recycling technology and the latest cash management forecasting software is essential for a successful deployment. Make sure your software is flexible and can be adjusted as your ATM network grows or changes.

11 9. WILL CASH RECYCLERS BECOME LESS COST EFFECTIVE IF CASH USE DECLINES? The rise of digital payments has caused a decline in consumer cash payments in some countries, but cash in circulation is still growing. Consumers want choice, and cash will remain part of the wider payments ecosystem. It s not going to disappear anytime soon. As long as financial institutions are expected to provide convenient access to cash, cash recycling ATMs will continue to provide a cost-effective way for financial institutions to differentiate themselves from their competition.

12 10. IF I'M CONSIDERING CASH RECYCLERS FOR MY FLEET, ARE THERE ANY RECENT INNOVATIONS I SHOULD BE AWARE OF? To benefit from cash recyclers, FIs need to fully understand and analyze their deposit and withdrawal transaction flows and volumes. Data-driven analysis will allow them to make informed decisions on how to configure their machines. To support this, NCR has established a Cash Recycling Excellence Team of experts who can work with clients to help analyze the data and provide recommendations for their ATM fleet.

13 WHY N C R? NCR is a leading global technology company that brings unexpected value to every interaction between customers and businesses. The company behind the world s #1 ATM SelfServ brand and ranked #1 globally for ATM multi-vendor software, we power 8 of the 10 highest-ranked banking apps with digital banking solutions used by 15M+ consumers. Digital first but not digital only, our software, hardware and services help financial institutions bridge their digital and physical operations. From banking apps to branch transformation, our future-proofing technology runs the entire bank, delivering customized, secure, anytime, anywhere experiences that create more value for FIs and their customers. ncr.financial@ncr.com