• Brendan Thorpe, Customer Success Manager at Auriga


• 20.05.2025 06:15 pm
#CashRecycling #FutureOfBanking

As the cost-of-living crisis has rippled through the UK, more people are turning back to cash to help with their budgets. This is driving an upward trend in cash usage with withdrawals increasing by 10 percent in 2024 to 32.8 million compared to the year before. We have also seen a move towards increased cash use globally. Even Sweden, one of the world's most cashless societies, is also seeing a move towards cash due to geopolitical reasons. 

However, whilst customers are using cash more, the closure of nearly 2,000 bank branches since the beginning of 2025 is causing issues with customers’ ability to access cash services. Due to this, ATMs have rapidly become the primary touchpoint for physical access to cash. For this to be a successful approach, financial services organisations must ensure that they have a robust strategy in place to make sure that their entire ATM network meets customers’ demand for cash services. Unfortunately, cash operations are expensive to run and maintain and are subject to the same cost and service pressures that is driving branch closures.

Driving automation in the cash recycling process

To make cash services cost effective, banks need to make them more efficient. One of the easiest ways to do that is by investing in automated cash recycling technology, which can be integrated into ATMs or as a stand-alone cash recycling unit. This automatically sorts and counts the cash which has been deposited in the machine, which will then be re-dispensed instantly for customer use. 

With cash recycling technology, banks can deliver much more streamlined and efficient services, as the cash recycling machines act as both a collector and distributor of cash. These machines can also be deployed as part of a localised cash collection and re-distribution system. Here, these machines can be deployed in partnership with other types of recycling technology, like point of sale (POS) systems in retailers. 

The benefits of cash recycling 

The banks that deploy cash recycling machines, coupled with the right back-office technologies, are seeing significant benefits from increased efficiency in their operations. Ultimately, this means that as the manual processes involved in cash processes such as sorting and counting money are automated, employees can focus on higher value tasks that are more customer focused. 

Additionally, as cash recycling machines can also complete a wide range of transactions, customers will no longer need to queue for the branch teller if they have simple service needs or questions. In this way, employees will be able to focus on more complex customer queries, which require humans in the loop. As such, banks will be able to provide best-in-class customer service, which is tailored and proactive. 

While cash recycling is focused on efficiency and cost, it does deliver other benefits. Namely, it increases a bank’s ability to meet its Environmental, Social and Governance (ESG) goals by increasing services to vulnerable customer groups, and also reduces the need for Cash-In-Transit (CIT) services which drives reductions in CO2 etc.

How can banks successfully deploy cash recycling technology?

For cash recycling to work for a bank, it can’t be delivered as a stand-alone technology and must be part of a wider supporting ecosystem. The best way for banks to deliver this is through a strong strategic partnership with their technology and service providers.

As cash usage increases, banks must ensure cash availability for their customers, but also make sure that, they are doing this in a cost-effective and efficient way. With automated cash recycling technology and strong partnerships, financial services organisations can do just that. Cash will always play a central role in people’s lives, and banks must ensure that they are able to deliver much needed cash services to their customers.