BS/2 launched a series of “Cash Solutions 2023” seminars, covering Azerbaijan, Georgia, Kazakhstan, and Uzbekistan. The first event took place in Baku and was attended by over 50 top-level experts from 24 financial organizations.
Why are cash payments still popular?
According to a survey conducted by the European Central Bank, despite the active development of digital payment methods, cash transactions remain popular.
The increase in the volume of cash in people’s wallets and bank vaults has been influenced by:
- Restrictions during the pandemic : many people saved extra money for the future
- Unstable geopolitical situation: foreign currencies are used as a financial cushion in case of market shocks
- Energy crisis: payment infrastructure can fail in the event of power outages and internet disruptions, but cash payments can be made independently of technical barriers
- Demand from certain social groups: elderly people, rural residents, migrant workers, and visually impaired individuals may prefer cash
- Bank fees for non-cash transfers
- Insufficient number of payment terminals that accept cards
Why is it so crucial for banks to optimize cash circulation?
Today, there are almost 3,000 ATMs operating in Azerbaijan. Therefore, it is crucial for banks to plan the cash requirements for their self-service devices. Inadequate funds in ATMs can lead to client dissatisfaction and damage the brand’s reputation.
Banknotes age, become dirty, tear, and gradually become unusable, losing their legal tender status. Therefore, it is important for banks to properly sort and count banknotes. During recounting, old banknotes are often discovered and need to be removed from circulation and replaced with new ones. This is a time-consuming process, and it is better to use specialized equipment.
The Azerbaijani manat is less frequently counterfeited than foreign currencies like the US dollar or euro. However, the Central Bank of Azerbaijan (CBA) identified 452 counterfeit banknotes last year, mainly in 100-manat denominations. On average, there is approximately one fake banknote for every 660,000 genuine ones, which makes it imperative for banks to verify their authenticity. While a basic detector may suffice for a small retail business, banks require specialized equipment to verify all of the machine-readable security features on banknotes.
What modern cash management solutions were presented at the seminar in Baku?
At the recent seminar in Baku, BS/2 presented cutting-edge cash management solutions that are highly relevant for the banking industry today.
One of them is Cash Management.iQ, which was specifically designed for analyzing cash circulation and optimizing the distribution of cash at points of receipt and dispensing. This platform offers a range of additional functionalities, including:
Monitoring the status of ATM cassettes and collection bags in ATMs
With this feature, banks can keep track of the amount of cash in ATMs and perform timely replenishment or replacement of cassettes and bags when necessary. This ensures the availability of cash for clients and prevents situations when they are unable to withdraw the money they need.
Control over the loading of ATM bags and cassettes by orders placed in the system
By using this system, banks can accurately identify which collection bags and cassettes should be present in the ATMs at any given time. This helps reduce the time required to prepare them for collection operations and also enables the bank to hold specific individuals responsible for any discrepancies in the process.
Counting and accounting of cash from various sources, including ATMs, kiosks, and ADMs (Automatic Deposit Machines)
This feature enables banks to verify the accuracy and authenticity of cash, detect excesses and shortages, and quickly identify the root cause of any error.
During the seminar, the participants were also shown demonstrations of cash counting and processing machines, including:
- CPS X5500 and CPS X2300 cash sorting machines that have the ability to check the authenticity of banknotes and detect worn ones
- Tresmer TSB-1000, a high-quality banknote leveler from a Swiss manufacturer
- Scan Coin SC 303 coin counter with a high counting speed of 2700 coins per minute
- Henkovac T3 vacuum packer of banknotes with a BUSCH pump from German manufacturer
- Integrated physical access control for safes S&G A-Series with remote control
- Oberthur CC 6000/12000 cash case for transporting cash with millisecond ink staining speed
When will the next event take place?
BS/2 will host its upcoming Cash Solutions 2023 seminar in Tbilisi on February 24, 2023. The event will feature speeches of representatives of the National Bank of Georgia, TBC Bank, Basisbank, and EUROCASH1, a security and collection services company.