Commitment to support the UK’s Wholesale Cash Distribution (WCD) network: View the update

The future of cash management in the Saudi Arabia

Executives from the Kingdom of Saudi’s major banks and Cash in Transit (CIT) providers met on April 10th in Riyadh to discuss the future of Cash Supply Chain Management.

The event, organised by Cash Solutions, Transtrack International and Vaultex, was an opportunity for some of the world’s leading experts to talk about the latest developments  in cash. These include:

Cash centre optimisation

Cash is under pressure around the world. The growth of alternative payments, bank branch transformation and changing consumer behaviour are all impacting cash volumes.

As a result, cash centre operators – including central banks, commercial banks and third parties – are facing challenges ranging from rising costs to increasingly sophisticated criminals.

Multiple banks can successfully share the cost, risk and services by using single cash centre operator, such as Vaultex, a joint venture between HSBC and Barclays. When implemented correctly, this model can reduce costs and improve service for all parties.

Investment in the right technology can have a transformational impact. For example, cash management activities – from note sorting, to reconciliation, to optimisation – can increasingly be automated. However operators need to analyse and understand their requirements to ensure excellent efficiency, security and service levels.

One Stop Shop: ATM Managed Service

The introduction of a managed service model can transform the cost, availability and profitability of ATM networks.

The accuracy of branch forecasting can be improved to ensure the right levels of cash. This can be achieved through a better understanding of how branch counters, ATMs and self-service machines are being used.

An ATM Managed Service model can help companies save costs and improve efficiency by switching to a single supplier. Multiple services can then be consolidated into a single contract with clearly defined SLAs. This gives banks end-to-end visibility of costs, management information and reporting, along with a single point of contact for queries.

Coin Management

The new one and two riyal coins have the potential to disrupt the Saudi cash industry, which has not handled wholesale coin volumes in the past.

A target operating model should therefore be :

  • Be scalable and flexible to deal with future rises (and drops) in demand
  • Be optimised – with technology where a business case exists – to ensure you are processing coin in the most efficient and secure manner
  • Be customer-focused to ensure a quality of service to your customers
  • Be robustly designed to mitigate the risk of SAMA penalties and brand damage due to poor compliance

About the organisers: