Branch Transformation

Are Teller Cash Recyclers reaching a tipping point?

The banking world has been slow to adopt TCRs for many reasons including costs and a push towards digital banking at the expense of branches. That may be changing.

Photo: Adobe Stock

July 9, 2024 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator

One feature for ATMs that has received a lot of attention would be cash recyclers. These machines allow ATMs to recycle deposited cash to use for withdraws, cutting down on the time needed to refill the machines and in turn improving security and the customer experience. In addition, some bank branches are utilizing Teller Cash Recyclers to directly store, sort and reuse cash.

However, despite these advantages, the banking world has been slow to adopt TCRs for many reasons including costs and a push towards digital banking at the expense of branches.

That may be changing however, as a study from RBR Data Services found that in 2023 there were 140,000 TCRs deployed in key markets, up from 7% compared to 2018. The U.S. also saw 18,000 new TCRs.

What's driving this growth and are TCRs reaching a tipping point in the market? To learn more, ATM Marketplace spoke with Gillian Shaw, who led RBR Data Services' Global Branch Transformation 2024 research.

Q: What do you define as the primary components of a Teller Cash Recycler?

Shaw: TCRs are secure devices are secure devices used by tellers for storing cash and for cash transactions (customer withdrawals and customer deposits). They replace lower tech ways of storing cash and providing cash services (such as cash drawers)

They are traditionally used by branch staff but can also be customer facing.

Q: Why has it historically had low adoption rates?

Shaw: Cost has been the primary barrier to adoption. In some markets where banks are focusing on their digital channels, there has been a reluctance to invest in branch technology. Some banks, particularly those in France, are moving cash transactions to fully self-service machines (ATMs).

Q: What is the current trend with TCR acceptance?

Shaw:The total number of TCRs rose in 2023. Part of the growth in the number of TCRs can be attributed to the fact that TCDs (devices that cannot accept customer deposits) are being replaced with TCRs which offer the added functionality of cash recycling, thus enabling tellers to handle cash more efficiently and devote more time to sales and advisory services.

The U.S. is by far the largest TCR market, cash is resilient in the USA and banks are looking to adopt cash automation as part of their branch optimization strategies.

There were however several large markets where the TCR installed base declined in 2023. As several banks around the world have invested in digital channels, they have frequently rationalized branch networks. Remaining branches often see fewer cash transactions than in the past, which represents an inhibitor of TCR deployment

The global TCR installed base is nevertheless expected to grow by 1% over the forecast period, driven by branch transformation projects that seek to optimize operations

Q: What is driving its growth?

Shaw: Growth in key markets is driven by branch transformation and the desire to automate cash transactions so branch staff can be freed up to focus on sales and advisory services. Banks are transforming their branches to meet customer expectations and make branches more profitable. The evolution of the teller role into that of the "universal banker" is key to this.

Q: How can it reduce costs?

Shaw: TCRs reduce costs by making cash transactions quicker and more efficient. Tellers no longer have to spend time making trips to the cash vaults to replenish their cash drawers and much less time is spent counting and handling cash

Q: How can it improve the branch experience?

Shaw:The branch experience can be improved by TCRs as they lend themselves to more open layouts. As branch staff aren't spending as much time handling cash, they are free to engage with customers in a more meaningful way and provide value-added services.

Q: Any other data you'd like to highlight?

Shaw: Although digital payments are increasing worldwide, cash is resilient and so banks are looking for ways to service the ongoing need for cash transactions. TCRs enable banks to continue to meet the needs of their clients, both business and individual customers, in an efficient way.

About Bradley Cooper

---

Bradley Cooper is the editor of ATM Marketplace and Food Truck Operator. He was previously the editor of Digital Signage Today. His background is in information technology, advertising, and writing.

Connect with Bradley: