2011 Future of Cash Conference in Frankfurt, 17-Nov-2011

September 28, 2011

The "Future of Cash" Conference in Frankfurt brings together all stakeholders in the cash cycle - central banks, commercial banks, retailers, payment service providers, cash logistics companies, etc. with aim of providing a forum for the exchange of best practices and the further optimisation of the cash supply chain.

Key issues addressed during the conference:

- Re-engineering the cash cycle. As central banks are reducing their infrastructure in almost all countries, stakeholders are reviewing cash distribution models and their governance in order to guarantee an optimal and robust circulation of cash. Recent evolutions include Germany - where the Bundesbank is encouraging commercial banknote recirculation by licensed payment service providers - and the Netherlands - where commercial banks are developing an interbank utility to process cash.

- Cash automation. In the space of 40 years, the ATM has become ubiquitous and installations have been continuing to grow in spite of branch closures in some markets. Furthermore, automated deposit and recirculation are picking up with a view of reducing labour-intensive over-the-counter transactions. Retailers have also been automating both their back and front offices in order to improve productivity and accelerate the crediting of their accounts. Although cash automation contributes to improve productivity, it also leads to higher cash inventories and requires sophisticated cash management tools for further optimisation.

- Optimising sourcing strategies. The cash supply chain remains fragmented and product-centric with different providers offering hardware, maintenance, transportation, software solutions. To achieve seamless straight-through-processing, banks need to achieve the right balance between in- and outsourcing, partnerships and cost-focused procurement strategies.