Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

DEPOSIT AUTOMATION IS A KEY PART OF BANKS’ COST-SAVING STRATEGIES

Banks see deposit automation as a means of increasing the use of self‑service channels, saving both time and money

Banks and their customers say that more automated deposit terminals are needed

Everyone knows that if you want to withdraw cash, you go to an ATM – but how many people know that if they want to deposit cash, they may be able to use the same terminal instead of queueing at the counter? According to RBR’s Deposit Automation and Recycling 2016, an increasing number of bank customers not only know this but want to see more of it; the number of automated deposit terminals (ADTs) installed worldwide rose by 10% to 1.2 million in 2015, and banks cite customer demand as a major driver.

The benefits for the customer are clear; extended-hours access (90% of ADTs are available outside normal branch hours) and quicker account crediting are especially popular. So what’s in it for the banks? Budgets remain tight for many banks, and shifting more transactions from the teller counter to self-service can significantly reduce costs. With ATMs already well established for cash delivery, automated deposit is now coming into its own as a way of cutting cash-handling costs further.

Recycling takes centre stage

The vast majority of ADTs are deposit-capable ATMs, which both accept and dispense cash. Many banks are taking this a step further, and installing recycling ATMs which redispense deposited notes.

Cash-recycling technology has been around for more than three decades. The first ADTs were deployed in Japan in 1982, and the first recyclers followed in 1983; but many banks still consider recyclers to be too expensive or too complex. Attitudes are changing, however, as familiarity with the technology increases, and prices fall.

A third of ADTs are located away from bank branches, and replacing these machines with recycling ATMs has the potential to alleviate some of the costs and inconvenience of CIT experienced by deployers.

Number of automated deposit installations by type

Source: Deposit Automation and Recycling 2016 (RBR)
Source: Deposit Automation and Recycling 2016 (RBR)

Automated deposit will become a standard feature at ATMs

Customers in a number of markets now expect their banks to offer automated deposit as a standard ATM facility, and RBR forecasts that automated deposit will be available at 1.7 million terminals worldwide by the end of 2021. Recyclers will gain share in most markets, while the number of stand-alone deposit terminals will decline.

Rowan Berridge, who led RBR’s Deposit Automation and Recycling 2016 research, remarked: “Automated deposit terminals are becoming a standard feature in more and more markets, and I now expect the focus to shift towards recyclers,as banks become more familiar with the technology, and look for further cost savings”.