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WHO WILL TAKE MY CASH?Retail cash management in a post branch world

June 2017

ATM and Cash Innovation EuropeLondon

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“The future of banking is mobile only.”a

Valentin, Founder and CEO, N26 Group, Europe’s first Mobile Bank

“Executives naturally wonder why: aren’t customers demanding digital? Without question,

they are. But not to the exclusion of other channels, which remain critically important.”

a‘More than digital plus traditional: A truly omnichannel customer experience’,

McKinsey & Company

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Agenda

What’s the issue?

Current model for cash deposits

Branch closures

Future model for cash deposits

A potential solution

Mark TrevorCommercial DirectorVaultex UK

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• £125.3 billion in SME retail & hospitality sales¹

• £40 billion deposited via ‘Walk to Bank²

What’s the issue?

• 722,700 retail & hospitality SMEs in the UK¹

• Cash remains important

• Companies need to deposit cash

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Source¹: BIS, Business Population Estimates, 2016Source²: Vaultex estimates based on volume profile

Current model for cash deposits

CASH DEPOSITS

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Current model for cash deposits

CASH DEPOSITS

Expensive

Time efficient

Secure cash collection

PROS

CONS

Suitable collection time

No other banking services available

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Longer queues

No additional costs for customers

Convenient locations

Limited additional banking services

PROS

CASH DEPOSITS

POST OFFICE

CONS

Large network

Limited opening hours

Current model for cash deposits

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Sustainable economic model?

All Banking Services

Convenient Locations

Limited Opening Hours

PROS

CONS

Shrinking network

Current model for cash deposits

CASH DEPOSITS

No additional costs

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Automated solutions designed for personal customers

Where is my nearest branch?

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Predicting the number of branches in the future

Source¹: Annual Abstract of Banking StatisticsSource²: PwC Retail Banking 2020. Evolution or Revolution?

0

2000

4000

6000

8000

10000

12000

2005 2010 2012 2015 2016 2020

Number of Bank Branches in the UK

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Future model for cash deposits

OPTION 2OPTION 1

CASH DEPOSITS

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Future model for cash deposits

OPTION 2

How will this affect customer experience?

OPTION 1

CASH DEPOSITS

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Future model for cash deposits

OPTION 2

How will this affect customer experience?

OPTION 1

CASH DEPOSITS

CASH DEPOSITS

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Future model for cash deposits

OPTION 2

How will this affect customer experience?

OPTION 1

CASH DEPOSITS

CASH DEPOSITS

What is the solution for this market gap?

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What are customers looking for?

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Convenient and secure locations with less queueing

Longer opening hours

‘Real Time’ credits Quick and simple to use service

Focus on small businesses

No extra cost

A potential solution

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Deposit notes/Cheques Deposit high volume coin

Withdraw change Instant credits to your account

Examples from around the world

GERMANY

BRAZIL

SOUTH AFRICA

SWEDEN

AUSTRIA

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How Vaultex can make this work

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Linking banks together Managing multiple suppliers

Multi bank cash management

NCS member

Ask the audience

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A: Vaultex Change B: The Vault

D: Express MoneyC: MoneyBox

Pick the brand name for our solution

Confidential

Thank you