Your checklist when automating retail cash management

With more than 84% of all transactions made with cash and over R136 billion in circulation in South Africa alone, cash demand is increasing more than three times faster than economic growth rates, according to a global cash demand study published by the ATM Industry Association last year. 

The United Kingdom reported that the number of bank notes will increase by about five percent between 2016 and 2026, and with various other examples for the demand for cash around the world, the bottom line is, cash is here to stay – in fact for the next 200 years at least.

According to Richard Phillips, joint CEO of Cash Connect Management Solutions,“Automated Retail Cash Management should be the solution of choice. It saves money and time, enhances efficiency, greatly improves the store’s risk profile and allows one to focus on core aspects of running the business.”.

An automated cash management and payment solution is up to four times faster than a manual cash handling system. Business owners can save up to 50% of their business day, as they no longer have to count the cash, spend hours on recons and preparing bank deposits.

Here are a few important factors to consider when automating your cash management processes:

1. Business efficiency

Bill Gates once said that the first rule of any technology in business, is that automation applied to an efficient operation must magnify its efficiency.

Automated cash management, without question, improves efficiency.  It’s fast, accurate and error free.  It addresses all staff touch points associated with manual reconciliations and banking, counting, shrinkage, double count supervision, in-store cash insurance costs and overhead costs, not to mention the inordinate exposure to crime both in store and én route to the bank.

2. Cash is guaranteed

Cash Connect guarantees the cash value from the time it is deposited into the cash vault, whilst in transit and until the value reflects in the customer’s bank account.  With South Africa’s vicious cash crime landscape, this is a sure-fire way for retailers to achieve peace of mind when it comes to their cash.

3. Reduced risk

Not just the risk of cash loss but the broader risk to the business, its staff and customers, of a potentially violent armed robbery.

4. Shifting focus to manage your business

Without the head ache and tedious task of manual cash handling and banking, the retailer can focus on other crucial aspects of growing the business with greater efficiency.  

5. Improved cash flow

Traditional cash handling requires as much as a three-day turnaround for the value of the deposits to become available for use. Automation guarantees same day value and gives the retailer access to his cash almost immediately and in doing so effectively reduces his cost of funds. Reputable cash management and payment solutions enable cash to reflect in your bank account on the same banking day that the cash-in-transit company collects from your premises.

6. Growth capital

Cash Connect offers its existing customers quick and efficient access to unsecured, growth finance with which to enable and enhance their businesses. Upgrading, extending or making use of seasonal special offers to benefit from bulk purchase discounts are some examples of the benefits of this unique offering. 

7. Improve employee retention

When a store is attacked, not only will there be a cash loss, but also an emotional impact on employees and customers. There have been many cases in South Africa where employees left because they do not feel safe and where regular customers chose to shop elsewhere so as to avoid becoming a victim.  Businesses can expect to have a reduced footfall of customers for up to six months after a violent attack.  Within an automated cash management and payment environment, employees can go about their work with much less intimidation and a greater sense of safety.  

With more than 20 000 business robberies in South Africa in the last year, a new model for how cash is managed in the retail world is a non-negotiable.  In fact, an automated cash management and payment service is essential to ensure a safer and more efficient retail trading environment.