In the blink of an eye, 2019 is more than halfway behind us. Although we still have a few more months to go until 2020, the year has already seen several notable cash management trends in banking that need to be on your radar.
Advancements in ATM functionality and mobile payments may have continued to drive growth across the cash management side of your business, but we’ve pulled together four trends that have taken off, evolved, or waned in the year to date that will only continue into the year ahead.
Thinking the end is near for cash-facilitated transactions in the United States can be tempting, but the data is not quite there to support that claim. In fact, according to a 2018 study by the San Francisco Federal Reserve, cash is still used regularly for small-value purchases. Additionally, the average consumer in 2017 carried about $60 on their person.
What does this mean for your banking business? Consumers will continue to look to their financial institutions for easy and secure ways to access their cash.
Between the dramatic rises and falls of the bitcoin market, and Facebook’s announcement that they were exploring their own digital currency, the Libra, 2019 has been a dizzying year for digital currency.
Throughout the year, bitcoin, the world’s first and largest digital currency regularly saw dramatic fluctuations, including a 10 percent drop one day in July that marked a 25 percent drop total since earlier in the year. Combined with increasing concern from U.S. lawmakers and rallies fueled by Facebook’s June announcement of their own impending global currency launch.
Long story short: Although cryptocurrency isn’t quite ready to be a household payment method, the topic of it is becoming more of a challenging policy matter for governments and businesses.
Whether it’s driven by a need for more internal controls, efficiencies in cash handling, or a stronger grasp on cash flows, many more businesses and financial institutions are turning to cash recyclers for help managing their capital.
In addition to handling basic cash management functions like accepting, dispensing, and securing cash, these devices can do so much more for your organization. From driving operational efficiencies—from facilitating audits to speeding up deposits or cash withdrawals—to increasing cash security during the business day, recyclers are now available in many different sizes to fit the needs of your business and customers.
Much like recyclers, banks are beginning to take advantage of innovations in smart safe solutions to mitigate the stresses and risks around cash management. Although smart safes continue to serve their traditional purpose of keeping cash on-site safe, these devices are now capable of joining a larger cash management ecosystem within your financial institution.
Managers are able to view real-time cash levels at each retail location in your network, reduce unauthorized access to cash, and speed up transactions with accurate counts and currency authentication checks. Ultimately, this frees up more of your staff’s time to serve customers while increasing the fidelity of your cash-flow data.
Cash continues to be a major part of the United States economy, but 2019 has proved that your financial institution needs to continue to monitor broader market trends to stay in tune with your customers and technological advancements.
To learn more about how your business can take advantage of these new technologies and be prepared for what 2020 has in store, reach out to the experienced team at Burroughs.