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. 

With 57 armed robberies against business on an ordinary day, the stage is set for a festive season cash crime spike that South African retailers and business owners should be prepared for.  

According to Richard Phillips, joint CEO of Cash Connect, cash attracts crime and as consumers spend more cash on their festive season shopping, South Africans should best be prepared for a significant increase in criminal activity.

“Business owners must expect a rise in armed robberies, cash in transit heists, burglaries and bombings of cash devices at this time,” he says. “Criminals have their own festive season wish list and are ruthless in getting what they’re after.”

Traditionally, there is an almost 40% increase in the volume of cash held on retail sites during December, compared to the average cash volumes during other months of the year. Criminals know this and are sure to act on it.

“Extended trading hours create greater opportunity for crime spikes,” says Phillips. Holiday makers, fuel retailers and convenience store owners are most exposed, while the hardest hit areas are retail hubs and coastal towns.

There are many steps retailers can take to safeguard their cash, their staff and their customers. The most important and effective way to do so is by installing an automated retail cash management and payment solution and outsourcing your cash management and payments requirements to professionals. And make sure to use suppliers who make use of cash vaults that are robust enough to resist the toughest of attacks.

Businesses that have not yet invested in automation, should take the following precautions as recommended by security advisors:

• Make use of electronic transfers to pay salaries and wages.
• Do not make it known when cash will be taken to the bank for deposit.
• Alternate the days and times on which you deposit cash, as well as the branch or ATM you use. This makes your banking pattern difficult to spot.
• Do not openly display the money you are depositing, or carry it in money bags or briefcases, when you approach an ATM or stand in a bank queue.
• Do not drive to the bank in your company branded vehicle on a typical pay day and if you must be aware of your surroundings and alternate routes as and when necessary.

But even an automated cash management solution needs vigilance and intelligent management practices to deter criminals. These include:

• Prevent cash from becoming a target by regularly depositing takings into the cash deposit device and keeping cash at points-of-sale to a minimum.
• Keep in mind that robbers carefully survey their targets before an attack. Therefore be on the lookout for suspicious vehicles and people lurking in the area.
• Urge staff to spread the word that your cash is secured and not generally available. It won’t take long for would be criminals to realise that your store is a hard target.
• Encourage your staff to report suspicious enquiries to you immediately. They should be particularly wary of anyone wanting to know about banking habits, CIT providers or CIT collection times.
• Closing shop for a few minutes before and during cash-in-transit collections is a tried and tested ‘best practice’. Alternatively isolate and close down the area during the collections and ensure that the room where the cash exchange or handover is being made has access restrictions. ‘Out of sight is out of mind’ is a valuable adage.
• Assist the cash-in-transit collection team by being prepared. This keeps the collection service time window short, sharp and safe.

“We know that we are in for a tough time this year,” says Phillips. Cash crime season in South Africa has historically been the April and December holiday periods.

“The fact that attacks against cash have increased dramatically this year is an indication of what we can expect over the next few months. Retailers will do well to prepare themselves in order to reduce their risk of becoming victims,” says Phillips.

With less than two weeks to go before Christmas, the retail sector is booming with increased shopper activity. In the same vein, it goes without saying that criminals are also busy getting ready for the festive season.

The recent spate of cash in transit heists, with five incidents reported in the last week, proves that criminals are geared up to get their hands on cash with their brazenly planned attacks, and they will do so without any thought for life or limb.

We are witnessing an unprecedented increase in violent armed robberies against Retailers and the Cash in Transit sectors nationally. There is little doubt that our Retailers, the Cash in Transit companies and the Police services have to take this threat very seriously and change the way they deal with cash crime.   

The automation of the management of cash in the retail store has become a necessary and essential strategy in order to safeguard business continuity in the retail space.

Although many transactions are concluded with credit cards or other electronic payment methods, cash remains the preferred trading mechanism for thousands of consumers, particularly at this time of year. Traditionally, there is an almost 40% increase in the volume of cash held on retail sites during December, compared to the average cash volumes during other months of the year. 

“The combination of increased cash in circulation and the fact that we have an extra-long Christmas weekend this year, means that retailers have to be extra vigilant and proactive around managing their cash risks on site,” says Richard Phillips, joint CEO of Cash Connect Management Solutions.

The most important and effective way to decrease risk is by installing an automated retail cash management and payment solution that is robust and can resist the toughest of attacks. Cash Connect’s cash vaults, are built to SABS Category 4 standards and have acquired a reputation for their ability to withstand most attacks – including those carried out with explosives – and which provides a formidable deterrent.

But even an automated cash management solution needs vigilance and intelligent management practices to deter criminals. These include:

• Prevent cash from becoming a target by regularly depositing takings into the cash deposit device and keeping cash at points-of-sale to a minimum.
• Schedule ad hoc cash-in-transit collections before the Christmas and new years’ long weekends start to reduce increased value being kept on site unnecessarily.
• Keep in mind that criminals carefully survey their targets before an attack. Therefore be on the lookout for suspicious vehicles and people lurking in the area.
• Urge staff to report suspicious enquiries to the business owner immediately. They should be particularly wary of anyone wanting to know about banking habits, CIT providers or CIT collection times.
• Consider closing shop for a few minutes before and during cash-in-transit collections. Alternatively isolate and close down the area during the collections and ensure that the room where the cash exchange or handover is being made has access restrictions.
• Assist the cash-in-transit collection team by being prepared. This keeps the collection service time window short, sharp and safe.

Cash Connect believes that South African retailers should trade in a safe and secure environment.  A festive mood encourages merry spending.  Safeguard what you’ve worked so hard towards throughout the year – and don’t allow this to once again become a season to be jolly for our criminal underworld.

Another pioneering product from Cash Connect to revolutionise cash management operations in large retail and wholesale stores.

Cash Connect, the most successful independent, retail cash management and payment solutions company, has launched the N10K cash vault designed to provide top-of-line functionality for retailers and wholesalers requiring to secure large volumes of cash through high-speed, bulk cash deposits. The N10K is the largest model in Cash Connect’s cash vault range, designed to withstand the most forceful attacks. 

Built to minimum SABS category 4 standards and weighing 950 kg, the N10K provides a formidable deterrent.  Its innovative design includes a keyless sliding door feature that removes the old swing door that traditionally intruded on available retail space.

Additional features such as biometric user identification, a diagrammatic, touchscreen interface and a fool-proof bag loading system promotes easy and intuitive user operation.

A high-speed validator with a mixed denomination acceptance rate of up to 300 notes per minute makes depositing cash quick and easy. The N10K also offers scalable capacity of up to 10,000 bank notes, with notes being conveniently deposited into a single, disposable bag.

The N10K is supported by a cloud based, real time, financial management and payments software network that facilitates supplier payments and fast deposit settlement into multiple bank account destinations.

 Features:

• Built to minimum SABS category 4 standards
• Unique floor bolting fixtures
• Biometric user identification
• Host to Host automated reconciliation
• Unique, secure and fully automated door locking mechanism
• Barcode bag identification
• Dual SIM GSM/GPRS modem (communication)
• Capacity of 10,000 banknotes
• Up to 300 banknotes per minute processing speed
• Unlimited users and unlimited destination accounts as well as a multi-business partner capability

Says Richard Phillips, joint CEO of Cash Connect Management Solutions: “The N10K is the very latest in high-end cash vault technology available on the market. It was built to address many of the short comings that traders with large volumes of cash have historically encountered with old styled devices. This cash vault extends our product range and meaningfully improves our ability to enhance the safety and efficiency of our client’s trading environment, as well as provide an effective deterrent against most determined criminals.”