Regional Market Report on Cash Services 

  • The global CIT services market was valued at $ 16.56 billion in 2017. The market is forecasted to grow at a CAGR of 4.4 percent until 2020

  • CIT growth in emerging markets expected to outperform global market growth, expected to grow at three times more than in Europe and North America

  • Factors such as increasing ATM installations, stringent banking regulations and increasing crime rates drive the need for CIT services across the globe

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

Drivers

Integrated/Bundled solutions

  • 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

Constraints

Rise in insurance premiums

  • Increasing crime and theft rates calls for rise in insurance premiums
  • Increase in pension liability

Pricing pressure

  • 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