Key Facts About Cash 

Problems of traditional cash management: High cost, low productivity and losing customer.

The usage of cash is rising in large scale and will continue to do so in greater volume, despite the fast growth of many cashless payment forms i.e. electronic banking, mobile payment.

 

However, businesses around the world today still very much relying on traditional ways to manage cash. Worldwide annual cash handling costs more than US$ 300 billion and the entire value chain is suffering.

 

1. Retailers spend tremendous cost and time in cash handling. Having valuable people do low-value-add activity and scheduling frequent armored-car pickups is very expensive. In addition, retailers suffer enormously in cash shrinkage (in year 2015: shrinkage costs US$ 123.4 billion to retailers globally with average global retail shrinkage rate is 1.23%). 

2. Banks pay very high cost to move cash around. In year 2015, it costs Bank of America Corp US$1 billion a year to shuffle papers around and transport money in armored trucks. In addition, banks cannot capture the deposit of their retail customers if there is no physical branch or have to pay very expensive services for armored-car pickups.

3. Armored-car pickups (cash-in-transit) companies facing their operational costs keep rising and cannot acquire more business due to resources constraint. Also their traditional services are lack of competitive differentiation.

CA$H is still the most popular way to pay

 
Fact 01

 

 

Cash volume is expected to grow 1.7% per year in the next 10 years.

Source: Economic Letter: What is Your Wallet? The Future of Cash by Jeremy Gerst & Daniel J. Wilson Oct 24, 2011

Fact 02

 

 

Worldwide annual cash handling costs more than US$ 300 billion.

Source: White Paper, New solution concepts for cash management at banks and retail companies, page 2

Fact 03

 

 

Top-2 problems in cash management: Handling cost and security.

Source: Understanding the cost of handling cash in Asia Pacific: Building an integrated cash supply chain to improve cash handling efficiency, Asian Banker Research White Paper  (page 3), Jun 2013

Fact 04

 

 

Labor is the most costly component.

Source: Understanding the cost of handling cash in Asia Pacific: Building an integrated cash supply chain to improve cash handling efficiency, Asian Banker Research White Paper  (page 3), Jun 2013