Tuesday, 25 February 2020
As the payments landscape is becoming more digitized, many countries are studying digital currency and forecasting currency levels appropriate for their future operations. This session discusses the trends in cash and non-cash payments, and whether the cash cycle is adapting to the change.
- Presented by:
- Shabib Shabibi, Currency Director | Central Bank of Oman
This presentation looks at all of the key aspects relating to the cash cycle in Oman including usage across the country, the Central Bank’s role in ensuring that there is an effective infrastructure in place to circulate and handle cash efficiently, and covers recent developments that may have an effect on how cash is perceived in the future.
- Presented by:
- Angela Smith, Director of Wholesale Banknotes | Travelex
The revolution is complete, and cash is no longer king, at least according to the headlines. Last year was described as the year of “peak cash” globally. By 2026, in the UK cash will be used for just 21% of transactions. Does this mean a cashless society is inevitable? Or even desirable?
In 2018, Travelex sought to answer this question by surveying consumers to on their attitudes towards cash and cashless payment technologies across four countries at varying levels of “cashlessness”; the UK (advanced); Australia (tipping point); South Africa (transitioning); Brazil (inception).
It revealed that people not only don’t think cash will disappear, they don’t want it to. A sizeable minority - an “immovable 24%” - of people are happy with their use of cash, and no new technology could persuade them to use it less.
In 2020, Travelex will survey a greater number of markets, from cash-centric to digital leaders, to understand if a cash remains immovable and if we are any closer to desiring a truly cashless society.
The Cash Industry in Transition From the unique perspective of Currency Research (CR), the only global communications, consulting, and conferencing business operating in both cash and payments, CR has examined the impact of external and internal forces on the companies and government departments involved with the cash cycle as a whole. The recently released report, The Cash Industry in Transition, concludes that central banks are in the difficult position of receiving criticism if they express support for cash but also criticized if they support the move away from cash. They are navigating through truly uncharted territory and must be pragmatic in planning and preparing for a less-cash future. The cash industry must also hasten its planning for a less-cash society while maintaining a robust cash industry – not an easy task. Hear a brief overview of the report findings – and access a complimentary copy from the app for an in-depth look at where the industry has been and what could happen next.
This session will include presentations/panel discussion from Central Banks, Commercial Banks and Retailers on how to handle large volumes of commercial cash and to service commercial cash accounts. Competition is fierce and cash management is not the focus of many companies, yet at many of these organisations, large volumes of cash still needs to be handled and deposited daily. Listen and engage with industry leaders about the challenges associated with commercial cash handling and providing commercial accounts in an era where the branch footprint and interest in cash services is changing or reducing.
- Presented by:
- Bernd Paulussen, Executive Director | Cash Consult ME
Standardization and modernization of cash handling by cash-in-transit companies, cash centers, banks and retailers come with many different aspects and can be an operational challenge for central banks, as well as the commercial players themselves. While central banks have an interest in implementing rules that are necessary for health, safety, stability and sustainability and thus the national interest, the private sector has an obligation to obtain a return on the investment.
Carving out the rules and identifying the best hardware and software with relevant workflows, as well as implementing and monitoring them takes time and can be costly. As private cash transportation and handling is often a low margin business, CIT companies struggle to reduce costs where they can and sometimes try to resist the introduction of technology or will just implement the bare minimum.
Retailers and banks on the other hand, do not think of cash handling as a business, but as a cost. In order to ensure health and safety, as well as efficiency and best standards, the Central Bank may want to put guidelines ‘forcefully’ into place and monitor implementation and compliance.
The crux is that the private sector often demands to see modernization at the central bank level first, before it can be ‘forced’ onto the commercial cash handlers.
The good news is that the required technology, hardware, software, workflows and processes have been tested and put into place in many countries around the world and the wheel does not have to be reinvented. Yet, regulating, monitoring and the implementation of best practices for the cash cycle is an ongoing process for all central banks, as technology evolves and rules, requirements and market conditions change.
There is much hype around the advance of digital payments, many Central Banks are supporting a less-cash society, but cash continues to grow in most economies. This panel will separate the facts from the myths and look to a future where digital payments and cash will co-exist, but cash in a digital world will be different and it has been transforming at a fast pace.
Wednesday, 26 February 2020
As the operating environment changes with ever more automation and digitization in the cash cycle, new threats arise that could have an impact on your business continuity planning (BCP). Let’s hear how the key stakeholders ensure they know and understand potential points of failure and their plan for such failure. When the electronic payments infrastructure is rendered ineffective, cash is often the saviour, so ensuring resiliency in the cash supply chain is of paramount importance.
These days society expects socially responsible behaviour from all organisations. This means that organisations should ensure not only active compliance with applicable laws, but also adhere to ethical standards. For central banks as the end customer it is essential that the standards applied by the banknote industry are beyond reproach. Ensuring integrity in banknote procurement is in everyone’s interests, because it improves trust in public institutions, increases competition between bidders and creates a level playing field. Banknote Ethics Initiative (BnEI), was established as a means of demonstrating that the industry is taking ethical behaviour seriously, and self-regulating with the objective of creating consistent high standards across the industry.
- Presented by:
- Diane Maurice, Adviser | Central Bank of Tunisia
Economic and financial inclusion may equate to promoting innovation according to recent practitioner guidance. Blockchain for example, which maximises efficient tracking and information sharing on various functions can enhance core central bank functions and resiliency. Can Blockchain assist in promoting resiliency in operations related to BCP and Cyber Security Protections? Other benefits widely touted include enhancing the safety and security of payments and monitoring the flow of cash – thus minimizing the opportunities for money laundering and counter terrorism activities.
Considerations to enhance the efficiencies of Central Bank resiliency and independence, with or without Blockchain innovations, focus on more traditional approaches. Strengthening the Governance Framework promotes central bank independence and contributes to both domestic and regional growth, trade and more robust cross border currency flows.
As cash circulates longer in the cash cycle, how is quality being monitored and maintained? This historic role of a central bank is being challenged by lower rates of return and the further outsourcing of the cash cycle. Hear central banks, CITs, and solution providers explain what is being done to safeguard currency quality and what new opportunities exist given the availability of data from the point of sale.
- Presented by:
- Friday Imoulamen, Head of Cash Management | Stanbic Bank
Friday will cover overview of Nigeria Population, cash in circulation and quality, reasons for high volume of unfit Banknotes in Circulation, characteristics of acceptable banknotes and current challenges facing currency quality and acceptance. From the perspective of Commercial bank Friday will discuss the efforts of Central Bank of Nigeria to minimize unfit banknotes and cooperation with local stakeholders
The time has come for partnerships of CITs, FI’s, Central Banks, and suppliers to define the efficient cash cycle of the future based on visibility, cost-effectiveness, and security. This workshop focused session will push the participants to understand the obstacles to outsourcing and discuss what can be done about them.
Cash Handling Services (CHS) is a special type of logistics where customers are price-conscious and therefore the providers are extremely cost-sensitive. Hence, efficiency is of paramount importance. In search for optimization, CHS providers frequently turn to technology and automation for operations, security and risk management. However, striking the right balance, particularly between automation and craft is a delicate issue, and needs to be managed carefully. CHS industry needs to make smart decisions on investment priorities; otherwise they run the risk of ending up with underutilized systems and idle capacities. Using the right technology in the right place to the right extent requires serious considerations on a number of factors. In doing so, variations from one country to the other need to be understood well to avoid falling down the pit of copying always the expensive best.
To meet the expectations of consumers before, during and after their purchase, the retail sector has integrated its store operations, delivery and inventory management. Is our industry ready to provide such visibility to cash logistics? Hear a vision on how data standards and best practices can be used for cash logistics affecting intensive cash users and businesses. This new level of cash visibility will improve data accuracy, speed up resolution of discrepancies, and facilitate track and trace throughout the cash supply chain.
Interoperability across the cash supply chain is essential for advanced process optimization. The bases are agreed standards for identification of shipments and containers, tools for capturing of data in transport, cash centre and branches, and shared information by EDI (Electronic Data Interchange). Open source platforms and tools allows that each cash player can participate and get its relevant information to manage the process efficient and secure. GS1 Standards for cash logistics are developed and are ready for implementation, so Central Banks in Europe introduced the cash EDI systems since 2011 in larger scale.
The systems allow an end-to-end tracking and tracing, enable electronic handover protocols or inventory reports in real time based on accurate data exchange between the contracting parties. In the seminar, we illustrate the impact on processes, and on cash centre/ transport organizations, show business cases and the best way for implementation.
Capturing data from banknote processing became a necessity in a world where traceability, planning and efficiency are imperatives. Cash cycle efficiency depends on reliable hardware, secure processes and continuous flow of information. The introduction of cash cycle management software applications allows complete traceability of banknotes whether it is by unit (single banknote), by bundle or by package. It also leads to instant and reliable reporting and controlling, independent from human error.
Tracking a banknote through its serial number, brings another dimension to authentication and fights against counterfeits in the market, through log comparison and simple accessible search and match functionalities.
Live data management allows a clear overview on banknote localisation, and consequently enables decision makers to allocate and distribute volumes throughout the bank’s network. Forecasting and planning become increasingly precise, optimising cash circulation and consequently lowering its cost.
For the last few years, quite a few companies started to develop security features for smartphones. It is a logical step to use the computing power of the phones to detect security features but there are not many studies to see how the public would react or would accept these applications. As a pilot project with the Hungarian National Bank and the Hungarian Banknote Printing Works, Jura developed such a smartphone readable security feature but we did not know what would be the reaction of the public.
To develop such a feature was not easy, during the development process we have analyzed the printing process, the capturing process and certainly the forgeries. In the printing process analysis, we have compared different printing technologies that might be used during the falsification process. From the Hungarian Central Bank, we got a full range of forgeries starting from the very simple photocopies to the most complex offset printed banknotes. The research as input data used the forgeries of the Hungarian Forint.
As we are talking about high security printed products the print itself by definition is a high-resolution intaglio print printed with high-quality printing machines. The identification is done with Smart Phone, the application can identify and authenticate the security print from forgeries.
In the first half of 2018, the Hungarian National Bank conducted a Perception Study on this feature to see the reaction of the public. The research was conducted in Hungary. The presentation will describe the process itself and give feedback on the conducted study including statistics, videos and test results.
Industry suppliers will share the latest technologies and best practices in terms of manufacturing Banknotes and Coins
This presentation describes the decision-making process and some of the policy considerations behind the design and launch of the upgraded banknotes, from the perspective of the National Bank. These range from the early stages of selecting the main trends to the development of an information campaign and the process of getting the market ready for accepting the new banknotes