South African retailers face a complex operating environment, characterised by inefficient manual processes, challenges in managing cash flow, and tight margins. Automated cash management solutions offer a compelling answer to these challenges, enabling retailers to streamline cash management and achieve higher levels of operational efficiency.
That’s according to Mark Templemore-Walters, operations director at Cash Connect, who says that automated cash management can deliver a saving of up to 40% in time and money across cash handling processes for most mid-sized retailers.
These savings are achieved by reducing cash management costs such as cash in transit fees, manual counting and reconciliation, and shrinkage. In addition, an automated cash handling solution allows for instant transfer of cash-related risks to a cash management company, as well as real-time settlement of funds to a bank account, or a digital Wallet.
Templemore-Walters says that efficient cash management is a cornerstone of retail profitability in South Africa because the country remains so cash-centric.
Finscope research shows that more than 33% of adults use their bank accounts to withdraw money deposited for them immediately because they do their day-to-day transactions in cash. Some 68% withdraw cash at least once a month and 25% at least once a week.
“This reality underscores that most retailers will need to manage large volumes of cash for the foreseeable future,” he adds. “Retailers need to make it easy for consumers to pay in cash—in addition to card and digital wallets—and to have systems and processes that make it safe, efficient, and cost-effective to process cash.”
Automated cash management solutions are built on the foundation of a smart cash vault built to SABS Cat 4 standards to withstand tough attacks and deter criminal activity. High-tech features such as biometrics enable cashiers to make seamless cash deposits, increasing accountability among staff when making cash deposits.
Retailers can also opt for an intelligent retail ATM Recycler that serves as a robust cash vault, recycler, and dispenser. This all-in-one solution offers a win-win for shoppers and retailers alike. Placing the smart ATM Recycler conveniently inside the store means that the retail store can become a go-to destination for shoppers to not only withdraw cash, but also to do their monthly shopping, saving on taxi fees and extra trips to the shops. This device not only reduces retailer’s cash risk, but it also enables retailers to earn a rebate from each successful cardholder withdrawal, increasing revenue.
Automation of human touchpoints in counting, recons, and banking is four times faster than a manual system and reduces shrinkage and back-office costs.
Retailers don’t need to send anyone from their premises to the bank to deposit daily cash takings. Once deposited in the retail cash vault, funds are settled instantly or within the same day.
In addition to allowing for immediate transfer of risk, this approach allows retailers to access their cash whenever they need it, says Templemore-Walters. A leading fintech provider will offer them the ability to pay their suppliers from the cash in the vault, via a secure portal. This means there’s no need to keep unsecured cash on hand for COD deliveries.
Fintechs like Cash Connect offer automated cash management as part of a wider portfolio of fintech solutions.
“Automated cash management isn’t just about creating a safe and efficient trading environment; it’s a strategic enabler of better financial management,” says Templemore-Walters. “By automating cash handling, retailers can streamline operations, reduce costs, and minimise their risks, all while improving cash flow and growing their businesses.”