Managing the Cash Cycle

Identifying – and Using – Potential.

Apart from security, cost reduction is another reason for introducing a cash management solution. There is substantial optimization potential in the paying-in offices of retailers, as the Swiss retail group Coop has shown. Cash from the Coop paying-in offices is now directly counted by Wincor Nixdorf’s iCash systems, put into cassettes and recorded. All of the processes are simple, swift and secure. For a back-office automated solution, we estimate a return on investment (ROI) of between 12 and 24 months, depending on the size of store.

With Shell and Postbank, we plan to go one step further. In 2009, Postbank customers will be able to withdraw cash without a fee at Wincor Nixdorf cash recycling (Glossary)  terminals in the Shell service stations under an agreement between the oil company and the retail bank. The terminals located at the checkout points will be equipped to accept cash, store it in a safe and recycle it for dispensing. In addition to improved security for service station personnel and additional services for consumers, the solution avoids having CiT companies frequently collect cash that piles up from steady deposits.

Sinking Costs Simply.

A glimpse inside banks also shows huge potential for reducing cash-handling costs. One simple step is to transfer staff-attended counter payments to self-service terminals. Costs can be reduced by a factor of three, according to Wincor Nixdorf experts.

With its cash recycling technology, Wincor Nixdorf is able to shorten the entire cash management and reduce costs significantly. Banks can achieve savings of between €40,000 and €100,000 per year and per branch with a system that validates banknotes, checks their “fitness” and makes them available for dispensing. One large German bank has been able to reduce both the number of CiT trips and cash provisioning costs by around 30%.

There are still other reasons for well-planned cash management. For example, cash stored in ATMs and safes does not generate interest. On the other hand, empty ATMs annoy not only users but also banks that cannot collect fees. To help avoid problems like these, Wincor Nixdorf has developed analysis software that calculates optimal replenishment amounts and times for all cash points operated by a bank. This information can also be used to determine the best routes for CiT drivers.