Inadequate note capacity results in workarounds that erode the efficiency gains of cash recycler ROI. Surplus capacity encourages staff to stockpile cash and retain too much of a non-performing asset.
So, what is the right capacity?
When selecting a cash recycler, financial institutions and retailers alike must determine the right note capacity to fit their business needs.
Understanding cash volumes in the branch or back office as well as the manual processes surrounding cash is key to determining the note capacity you need. Single control custody, segregated storage and dual control cash procedures are just a few of the manual processes that limit the ability to accurately determine cash inventory requirements. The adage “you can never have too much of a good thing” fails to ring true in the case of cash inventory and cash recycler capacity.
The goal of cash recycling isn’t to store as much cash as possible — it is to store only the cash you need and not a dollar more.”
In an attempt to control shrink and limit theft, these manual processes sacrifice inventory control for accountability. Once you understand the limitations imposed by manual cash handling processes, calculating the appropriate capacity for a cash recycler is straightforward.
On average, financial institutions and retailers reduce average cash on hand by 25% – 40% after implementing cash recycler technology. By storing currency centrally in a cash recycler with detailed electronic journal capabilities, businesses eliminate redundancy in denominational inventory without compromising audit and security.