New  Cash  Management  Solutions  for  Changing  Times:

Lessons  learned  from  dealing  with  commercial  customer  cash  in  banking  transformation  projects

2017,  June  14th

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The  return  of  the  Jedi

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The  return  of  the  Jedi

Or  why  you  should  not  get  rid  of  your  Night  Deposit  Safe  Chute  just  yet…...  

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Yes,  still  there  is  more  cash  payments  than  any  other  method.

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We  at  Prosegur  see  ourselves  involved  in  keeping  cash  easy  to  use

Dispense,Withdraw

Deposit,Pay

Digital  Money Cash

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ATM Cash  Deposit BPO

• Forecasting  and  Monitoring• Second  Level  Maintenance• End  to  End  ATM  Outsourcing• ATM  Deployment  and  Pooling

• Back  Office  Automation• Front  Office  Recyclers• Same  Day  Value• Self  Check  Outs

• Teller  Outsourcing• Shared  Infrastructure  Branches• Multi  Recaudos• Bank  Call  Center  Outsourcing• ATM  and  Branch  Balancing

Our  product  portfolio,  on  top  of  the  traditional  CIT  offering  focuses  on:  

Kiosks

• Bill  Payments• Wallet    and  Mobile  Top-­ups• PayPal  (and  others)  integration  • Micro  Credit  payouts  and  paybacks

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Most  banks  in  the  world  are  undergoing  some  kind  of  branch  transformation  project  at  the  moment

• No  need  for  branch  staff  involvement• Can  be  24/7• Channel  dedicated:

• Business  customers• Retail  customers• Seal  bag  couriers  

• Improved  customer  experience• Reduce  branch  cost  associated  with:

• Cash  deposit  handling  • Issuing  of  floats

• Prosegur  end-­to-­end  solution• Device  ownership• Lease  of  the  store• CIT• Forecasting• Maintenance

• Location• Branch  lobby• Off-­site  commercial  areaSmart  ATM

ü Deposit  notes  (same  day  value)

ü Dispense  cashü Deposit  chequesü Account-­related  transactions

ü Prints  receiptü Easy  to  useü Perfect  channel  for  couriers

ü Seal  bagü Float  issuingü Coin  rollü Medium  size  business  customers

ü High  capacityü Float  issuingü Customers  that  demand  high  volume  of  floats

Kiosk  v.2.0 Deposit  bags  +  Float  Issuing

Coin  lockers

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The  volume  of  cash  handling  activity  by  branch  staff  remains  significant  – resulting  in  inefficiency  and  low/no-­value  activity  for  bank  personnel

At  present,  branch  staff  are  responsible  for  cash  handling  from  retail  customers,  for  in-­branch  ATMs,  and  from  commercial  customers,  with  only  a  small  amount  of  in-­branch  cash  activity  not  

being  handled  by  them

RetailCustomers

CommercialCustomers

Off-­Site  ATM In-­branch  ATM BranchTellers

ProsegurService

Safe-­BagChute

Arrow  head  indicates  direction  of  cash  movement

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Deploying  a  combination  of  automation,  particularly  oriented  at  commercial  customers,  can  shift  staff  toward  value-­creating  activity

Going  forward,  we  see  moving  a  large  amount  of  cash  handling  to  Prosegur-­managed  interfaces,  working  with  the  bank  to  refine  for  each  customer  channel.  For  commercial  customers,  we  propose  

a  combination  of  onsite  and  offsite  locations.

RetailCustomers

CommercialCustomers

Off-­Site  ATM In-­branch  ATM BranchTellers

ProsegurService

Safe-­BagKiosk

Commercial  Cash

Automation

Arrow  head  indicates  direction  of  cash  movement

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This  project  resulted  in  an  application  to  improve  the  Safe  Bag  experience  

No  more  filling  in  tedious  deposit  slips….

??

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Using  a  Cash  recycler  for  Commercial  Cash  Customers  versus  Safe  Bag  deposit  solutions

DisadvantagesAdvantages

ü Deposit  notes  (same  day  value)ü Dispense  cashü Deposit  chequesü Account-­related  transactionsü Pre-­staging  of  transactions  and  preferences

ü Less  CIT?

ü Sensitive  Technology  (Uptime)ü Full  is  Fullü No  coin  depositsü Relatively  slow  transactionü PCI  Complianceü Relatively  (still)  expensive

DisadvantagesAdvantages

ü Robust  technologyü Large  deposit  volume  ü Fast  transactionü Deposit  cheques  ü Deposit  coinsü Cheaper  technology

ü Differences  in  declared  value  and  real  value  in  the  bag

ü Counterfeits  not  detectedü No  cheque  imageü No  same  day  valueü Not  On-­line

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What  happens  if  you  can  combine  the  advantages  in  a  single  solution  –same  day  value  for  safe  bags...  

• How  do  you  deal  with  differences  and  counterfeits?

• How  do  you  limit  the  amount  deposited  across  multiple  machines?

• How  do  you  identify  your  customer  without  asking  for  a  PIN?

• How  are  customers  activated  for  this  service?

• Can  they  use  all  machines  or  just  of  their  branch?

• And  can  we  make  it  even  faster….?

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1.  Customer  On-­boarding  and  Contract  Management  

The  bank  user  (Teller)  creates  the  cardholders  of  the  service  in  our  application  (BamBu)

The  application  manages  the  risk  profile,  deposit  limits,  tariffs  and  pricing  of  the  service  and  does  the  contract  

handling.  It  furthermore  issues  a  Cash  Service  Card  (plastic  or  virtual)

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2.  Customer  identification  at  the  machine

A  customer  identifies  himself  at  the  machine.Any  registered  bankcard  will  do  or  a  generic  white  card,  and  we  avoid  using  the  PIN.  But  

nowadays  easier  is  to  use  a  virtual  card  with  a  

QR  code

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3.  Transaction  pre-­staging  on  an  Android  app.

In  order  to  speed  up  things  even  more.  The  Card  

holder  can  identify  via  the  app  and  register  previously  to  going  to  the  machine  bar  code  and  declared  values

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4.  Customer  deposits  seal  bags  in  the  Kiosk/Chute  or  Machine

When  the  customer  arrives  at  the  machine  or  the  kiosk/chute  combination,  he  identifies  the  

transaction  with  the  QR-­code  of  the  app  or  just  by  reading  the  first  bar  code  of  one  of  the  registered  seal  bags

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5.  Transaction  authorization  and  transfer  file  creation

The  machines  are  connected  and  monitored  in  the  Prosegur  platform.

The  authorization  limits  are  controlled  by  our  systems.

In  regular  intervals  the  switch  generates  a  SEPA  file  to  be  send  to  the  bank  for  same  day  value  of  the  

declared  amount.  Differences  are  deducted  or  credited  in  the  same  way. Middleware

Agent Agent Transfer

Bank

BambuSaldos Reporting Monitoring

Customer  Portal

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Conclusion

• Good  old  safe  bag  deposits  are  making  a  comeback,  especially  for  commercial  cash  customers  

• Same  day  value  for  these  deposits  are  perfectly  possible!

• Innovation  around  on-­boarding,  pre-­staging  and  identification  improve  the  customer  experience  even  more.

• Uptime  for  your  Recycling  machine  at  the  same  branch  actually  improves.

• And  most  important  …..  commercial  cash  customers  love  it!!

www.prosegur.com

Thank  you  for  your  attention

And  may  the  force  be  with  you