Cash Services Australia Market Trends
Category Intelligence on Cash Services Australia covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Regional Market Report on Cash Services
Market Overview – Australia
Market Dynamics and Trends
Consolidation of suppliers
- A shift in consolidation of suppliers has been witnessed in the last few years in Australia. A major reason being the increase in pressure on cost of staff, fuel and other elements are not reducing for the suppliers, making the profitability low
Growth in cash management services
- Cash management consists of verifying, reconciling, processing, forecasting, storing, and total management of customer cash and coin in a seamless and transparent manner for the customer
- Processing and managing currency has grown tremendously with the service providers dedicating state-of-the art facilities for currency processing and management
Retail cash automation
- Cash dispensers, smart-safes, and recyclers have been at the forefront when it comes to automating the cash handling process
- By providing the capability to accept, authenticate, sort, count, and in some cases dispense cash, these devices automate the back office cash handling and provide significant labor savings to the merchant or bank using them
Growth in electronic payments
- The proliferation of payment options other than cash, including credit cards, debit cards, stored-value cards, mobile payments and on-line purchase activity, has resulted in a reduced volumes for the cash in transit companies
Growth in “Soft skin” CIT operations
- Historically, the CIT work had been completed by armored trucks but increasingly soft skin operators have commenced completing larger amounts of work in the sector. “Soft skin” CIT operations have a single guard who does not wear a uniform, an unmarked, unarmored vehicle with limited security features
Industry Drivers and Constraints
- The industry is leaning towards integrated solutions which can cover both cash management services and armored car services
Increase in ATMs
- ATM management has been a major driver of armored car services and cash management
- Installations of ATMs is forecasted to grow at a CAGR of 6.3 percent until 2019 in North America, which will continue to drive demand for armored car services
Increase in crime rate
- Increase in crime rate has driven the outsourcing of cash handling to specialist service providers, thus reducing the risk for customers
Laws and regulations
- Complying with laws and regulations related to Cash-In-Transit (CIT) has driven the outsourcing of these services to specialist service providers
Rise in insurance premiums
- Increasing crime and theft rates calls for rise in insurance premiums
- Increase in pension liability
- Significant competition and pricing pressures in most markets
Decreased use of cash
- Decreased use of cash in developed markets
- Closure of numerous local bank offices has reduced access to case
Cash Services Australia Market Overview
- The cash services Australia market is a duopoly and hence the supplier power is high
- The CIT industry is both a labor-intensive and capital intensive industry, where established players like Armaguard and Prosegur dominate the market due to their service capabilities.
- The rivalry among competitors is pretty low as there are only a handful of suppliers who can provide integrated cash management solutions and they have a reasonable market share for themselves.
- Cash collections are basic services and undifferentiated in nature, and hence competition between suppliers is primarily based on pricing
- The cash services suppliers depend on density and volume of cash, in order to deploy their operating resources more efficiently. If clients can increase the volume along the route of the armored vehicle, the cost savings arising from operational efficiencies open up the potential for the buyer to negotiate competitive pricing.
- Cash in transit Australia market analysis shows that large buyers can leverage the volume of contract as bargaining power, in an otherwise supplier dominated market
- Large buyers make an attractive client for any supplier in terms of contract volume, thereby gain better negotiating power
- High risk and highly regulated industry makes outsourcing of the services critical
- The cash services market in Australia is dominated by two suppliers, with Armaguard being the market leader and the other player being Prosegur.
- This duopolistic nature makes it a supplier dominated market
Why You Should Buy This Report
- Information on the cash services Australia market analysis, overview, cash services industry drivers and constraints, mergers and acquisitions, etc.
- Porter’s five forces analysis of the cash services Australia industry
- Cost-saving practices, engagement models, pricing models, benchmarking, SLAs, KPIs, etc.
- Negotiation strategy, supply analysis, landscape, and profiles and SWOT analysis of key cash services players like Prosegur, Linfox Armaguard, etc.