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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