Many financial institutions around the country are looking at ways to gain more efficiency and enhance the customer experience at the branch. Many institutions are hearing about cash recyclers and the efficiency they create, but aren't sure yet what they are. In this article we aim to answer the simple question you may be afraid to ask "What is a Cash Recycler?"
What is this cash recycler thing you speak of?
There are a number of reasons people buy cash recyclers, most of which we will discuss in this article, but first we wanted to answer that main question of what is a cash recycler. A cash recycler is a secure vault or safe, that accepts cash, authenticates its value and stores it by denomination inside. It can also dispense cash in any denominations you'd like. The real magic comes from a fairly even flow of currency coming in and then back out, "recycling" the cash you have received without having to manually handle it. The machine increases speed and accuracy of transactions, as well as, gives your staff more time to focus on your customers than on handling cash. Sounds pretty cool, huh? Even though we have sold products like this for years, it's still pretty amazing to watch the thing work!
Why do I need one of these things?
Great question! There are many challenges in today's branch environment. Most FIs are experiencing year over year traffic decline at their locations, yet the branch still remains one of, if not the most important channels for any FI. The majority of relationship building and product growth comes from the branch still. Even with the rise of mobile and online banking, most customers associate convenience with having a branch nearby. Still today, more than 50% of clients visit a branch at least once a month.
With all those challenges, retail bankers are looking for the best way to service customers and have more time to consult with them on their financial decisions. The old manual way of handling cash was getting in the way of that. Transactions were taking 2-4 times longer manually with cash than with a recycler, so it required more staff to service the customers without having extended wait times. Since transaction volume has been declining ,without changing the operating cost basis, cost per transaction was continuing to climb. By implementing a cash recycler, you allow your branch staff to do more with less and ultimately handle the peaks when it's really busy without having extra staff during the slow times. To learn more on how a Cash Recycler can help your branch operate better, read our recent article on the same topic.
Design Has Changed
Another key driver for needing a cash recycler has been the change in layout that most branches are receiving. Many FIs are designing their branches around a more open concept. This may involve desks or PODs to conduct transactions, instead of the traditional teller line setup. To make this type of design work AND stay compliant, you need a secure way to keep cash secure. The cash recycler eliminates the need for barriers since it provides 24/7 secure storage of cash for the branch. This device has fueled the open branch design to great heights because the FI can take advantage of staffing efficiencies of Universal Tellers and maintain the security needed to reduce robbery and cash exposure.
Outside of security, this design concept allows the banker to have a more "partner-like" feel when conducting business and it can make cross-selling or relationship building more easily accomplished. At the end of the day, customers "feel" different when they interact with a branch like this and when the device helps their transaction flow even faster than it ever did before the emotional reaction to the experience is often superior to that of traditional banking centers.
There are many reasons to implement cash recyclers and you can you can check out some of the latest recycler technology available on our cash automation page. Hopefully you now understand what a cash recycler is and can move on to determining if the solution makes sense for you.