ARTICLE
Smart cash deposit machine: how it works and the benefits for business clients
A cash deposit machine – sometimes referred to as a reverse ATM – gives users the ability to deposit cash and secure their physical assets by storing them in a piece of hardware. On the other hand, a smart cash deposit machine offers many features: automatically detecting the currency and the denomination of each bank note, detecting and rejecting any counterfeit notes, upon a successful deposit provides a QR code to share and track the amount deposited, and connects to a cloud platform that links with partner banks and enables the deposited amount to be instantly credited and available for use.
Security
Storing cash collections on premise in money bags or a personal safe is a great security risk for business clients, internally and externally. Cash collections are subject to internal theft and fraud as well from foul players externally.
Loop smart cash deposit machines are built with bank-grade security features, including, for example, best of class encryption and modern end-to-end cryptographic techniques to ensure the highest level of data security and safety. Loop machines undergo frequent security audits by third parties to ensure we are always one step ahead of bad actors. That means businesses with cash collections can rest assured that their cash collections are as safe in the Loop cash deposit machines.
Efficiency
Manual cash management is a practice full of inefficiencies: cash leakages due to fraud, theft, and human error. Business clients receive cash collections from various points and rely on cash delivery agents and store/warehouse clerks to count and verify collections. Counting bank notes in large quantities manually – hundreds to thousands – and then recounting for verification manually is subject to human error. When collections don’t reconcile from one collection point to another – shop-to-onsite, on-site-to-bank, business clients get frustrated and need substantial manual intervention to detect either fraud or manual errors. This decreases the morale of employees and in turn increases turnover within a company. Additionally, the time it takes to manually count collections and identify each banknote for authenticity significantly cuts into the time employees can spend on activities that grow the business.
Loop smart cash deposit machines can eliminate this inefficiency. Business clients can enjoy the luxury of automatic counting and detection of counterfeit notes. Loop machines can count up to 200 banknotes in less than 15 seconds, a feat impossible by humans. Benefiting from automated features provided by loop machines, business clients can focus the efforts of their staff on activities that grow the business.
Flexibility
Loop smart cash deposit machines – also called reverse ATMs – are configurable and can be customized to meet the needs of business clients. Whether your point of collection is a small shop, a large warehouse, or a chain of retail stores, Loop machines can be installed on-site. Smart cash deposit machines provide the flexibility that business clients need to eliminate the cash leakage issues that arise with collecting and storing large amounts of cash on-site manually. Additionally, collections on-site can be made offline. The Internet service providers in emerging economies do their best but the infrastructure of fibre optics results in lost network connection many times in a day. However, nearly all working professionals – from office managers to cash delivery agents – own a smart device with a data plan. Business clients in emerging economies can benefit from offline collections in real-time, where cash delivery agents can use the QR code generated upon a successful cash deposit transaction and send an image of the QR code via mobile device data network. Unlike banks that have restricted timeframes to make deposits, loop machines (cash deposit machines or reverse ATMs) are operational 24/7. This enables business clients to improve visibility of their cash collections and cash deliveries while minimizing overhead costs: transportation, conversion.
Mobility
Traditionally, cash-oriented businesses collected cash at point of collection – be it a shop, warehouse, stores in a retail chain, or hub – and were refrained from accessing the financial assets until cash collections were deposited and processed by banks, subject to their terms and conditions. The delayed access to finances was a grave detriment to business clients’ working capital needs: borrowing money at high rates of interest to fill working capital needs, waiting for significant cash collections to avoid bank and transportation fees that arise with frequent small bank deposits. By the time collections were transported, deposited, and recognized by banks, business clients’ costs of borrowing increased and cut into their working capital. Cash-oriented businesses with monthly cash-collections experienced reduction in their working capital on a monthly basis which affected net profitability considerably by year-end.
Loop smart cash deposit machines allow business clients to deposit their collections in the on-site hardware, connect to a cloud platform via Loop app, and reap the benefits of cash mobility by converting their cash into remote cash. Cash delivery agents can log-in the loop machine using QR based authorizations, allowing our business clients to track every deposit made by their cash delivery agents, from any location where a loop smart cash deposit machine is installed.
Accessibility
Loop smart cash deposit machines connect with a cloud platform and provide business clients with faster access to finances. Once cash collections are deposited in a loop machine, they are digitized and linked with partner banks that credit cash collections near real-time. This means that business clients get access to finances almost instantly where once there was a delay of a few days up to a week. Business clients no longer have to borrow short term at high rates and can use their collections to fuel working capital needs.