cc2005 giesecke & devrient technologies for cash cycles in different market models

8/14/2019 CC2005 Giesecke & Devrient Technologies for Cash Cycles in Different Market Models

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Technologies for Cash Cycles

in different Market Models

Currency Conference

Montreal, Oct. 2005

WOLFRAM SEIDEMANN


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TECHNOLOGIES MATCHING MARKET MODELS

Wolfram Seidemann,

Montreal, October 4th 2005, Currency Conference 2005

Agenda

A Generic Cash Cycle

The Tasks of the Central Bank in the Cash Cycle

Different Styles of Implementation

Requirements to Technical Solutions

Solutions matching the different styles


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Wolfram Seidemann,


Quantitative model for analysis and optimization

Consumer

100%

3%

Self-Employed

11%

1%

5%

4%

43%

39%

5%

Vending

Machines

4%

Retail/

Services

82%

Assumptions: 100% corresponds to the number of

banknotes (not value) in circulation in the country. No

consideration of saving quota, net cash outflow nor

possible cashless payment effects.

Recycler

0%

Cash-In

1%

Teller

8%

Night deposit

44%

CIT

47%

Cash Acceptance

44%

Branch Back

Office

53%

Comm. Cash

Center

97%

47%

1% 70%

30%

8%

27%50%

Cash Center

CB

70%

Cash Processing

ATM

70%

Teller

30%

Consumer

100%

Cash-Out

EXAMPLE


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Wolfram Seidemann,


Central Bank targets in the cash cycle

Banknote availability to meet the

demand of cash under all circumstances(incl. provision for crisis)

Clean notes in circulation

Counterfeit prevention and detectionIntegrityIntegrity

Quality /

Image

Quality /

Image

EfficiencyEfficiency

Besides Macro-Economic Responsibilities:

result in the policy for processing.


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Wolfram Seidemann,


Policy for

authentication and

fitness standards

Policy for

authentication and

fitness standards

Image

General CB policy

Culture

Public acceptance

Global currency?

Demand for cash

Regional specialties

Availability

Public mindset Alternative payment systems

Seasonal differences

Crisis prevention

Cost + Risk Manufacturing

Handling / Processing

Transportation

Infrastructure

Regional specialties

Density of CCs, ATMs

Regional partners

Multiple factors determine the Policy


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Wolfram Seidemann,


Agenda


The Tasks of the Central Bank in the Cash Cycle Different Styles of Implementation




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Wolfram Seidemann,


banknotes processed

> 2.5 per year

banknotes processed

> 1.0 per year

banknotes processed

< 1.0 per year

Processing rate of circulated notes in different styles

3

5

Unfit Rate10% 50%

ReturnFrequ

ency[1/year]

20% 30% 40%

4

2

1

60% 70% 80% 90% 100%

Source:

G&D study, 2003 -2005

Delegated style

Involved style

Controlled

style


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Wolfram Seidemann,


Agenda







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Wolfram Seidemann,


Central bank CIT companiesCommercial banks

Commercial banks Retailers

Printing

plant

Cash

center

Cash

center

Counter/

Self-service

Cash

register

Cash

center

Common understanding of definitions with all players

Setting of standards (e.g. definition for Fit / Unfit / ATM-fit),

simple and enforceable rules and regulations.

Recirculation?


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Wolfram Seidemann,


Central bank CIT companiesCommercial banks

Commercial banks Retailers

Printing

plant

Cash

center

Cash

center

Counter/

Self-service

Cash

register

Cash

center

Consistent Sensor Technology

Fitness criteria determined in production quality control,

Qualified equipment at all level (eg. ECB recycling framework)

Recirculation?


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Wolfram Seidemann,


Agenda







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Wolfram Seidemann,


Different models require different technical solutions

Central Hubs Distributed networks

Production environment,High volume

Efficiency,

System performance

Cash center software systems

Network environment,

Lower volumes, distributed capacity

Coordination,

Management Information Systems

Supply chain management

For different styles, different technology will drive efficiency


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Wolfram Seidemann,


Giesecke & Devrient Group Worldwide

JohannesburgSao Paulo

Sao Paulo

Mexico City

Toronto

Dulles

Twinsburg

Ottawa

Munich/Gmund

Leipzig

Vienna

St. Petersburg

Moscow

Singapore

Istanbul

Cairo

Athens

Barcelona

Zaventem

Lagos

Johannesbourg

Dubai

Luxembourg

Knoxfield

Sevenoaks

Lisbon

Peking

Wuhan

Hong Kong

Huangshi

Bombay

Shanghai

Nanchang

Shenzhen

Buenos Aires

New Dehli

Kuala Lumpur

Casablanca

cc2005 giesecke & devrient technologies for cash cycles in different market models

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