Cash Automation in Branch Banking: Cut Costs While Improving Sales and Service

by Bob Meara, June 8, 2010
Industry Trends
Global, Asia-Pacific, EMEA, North America

Abstract

With branch image capture now widespread, banks are turning to solutions to automate handling the remaining paper, particularly cash.

In a new report, Cash Automation in Branch Banking, Celent explores the benefits of branch cash automation, considerations for prospective banks, and the vendor landscape for dispensing and recycling devices—collectively referred to as teller assist units (TAUs). Such equipment has been in use for nearly 15 years in the US, but interest is growing with the introduction of second-generation devices alongside increasing pressures for cost containment in the branch channel.

Since the introduction of the teller cash dispenser, Celent estimates there have been some 42,000 TAUs installed in North America. Among them, approximately 35,000 are dispensers. With the broadening of bank adoption and concurrent product improvements, Celent expects continued growth of teller cash recycling. By 2014, Celent estimates recyclers will account for 40% of all installed TAUs.

“Most banks are under considerable pressure to both reduce costs and improve branch sales and service effectiveness,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “CRM systems and transaction automation, like teller capture and teller cash recycling, are becoming two sides of the same coin. CRM systems alone aren’t delivering results.”

This report explains the reasons for growing interest in teller cash recycling. The report begins with a view of cash usage in North America and its impact on branch banking. This is followed by an overview of branch cash automation, expected benefits, and solution trends and considerations. The value proposition for banks is highlighted through a case study. Finally, the report details the current vendor landscape, with profiles of major vendors and their solutions.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

6

 

Cash Optimization

7

Branch Cash Automation

11

 

Benefits of Cash Automation

11

 

Factors Affecting Adoption

14

Solutions Trends and Considerations

18

 

Solution Considerations

19

 

Teller System Integration

25

Case Study: Webster Bank

33

Vendor Landscape

38

 

ArcaTech Systems

39

 

Burroughs Payment Systems

40

 

Diebold

41

 

Glory

42

Conclusion

48

Leveraging Celent’s Expertise

51

 

Support for Financial Institutions

51

 

Support for Vendors

51

Related Celent Research

52

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