The digitalization of payments is progressing rapidly, and cashMoney in physical form such as banknotes and coins. More and cash supply are adapting to market changes. In Switzerland, cash continues to be highly valued by large segments of the population. The decline in the number of bank and post office branches and ATMs is having an impact on the availability of cash. Between 2015 and 2023, the number of bank branches fell from 3,100 to 2,600 and the number of post office branches from 1,500 to 800, while the number of ATMs fell from 7,200 at the beginning of 2020 to less than 6,400 today. In the current situation, there is a risk that the cost of providing cash will rise, putting further pressure on banks as ATM operators and driving up the cost of providing the ATM infrastructure.
SIX operates financial infrastructure in Switzerland and Spain, thus ensuring the flow of information and moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More between financial market players. The company is owned by around 120 national and international financial institutions. With its Bancomat brand, SIX operates the largest ATM network in Switzerland and defines and manages common standards and requirements for each network, as well as processing interbank and internal bank transactions.
In order to ensure a sustainable, efficient and broad-based cash supply in the long term, new cooperation models are required. Against this backdrop, SIX and Diebold Nixdorf have decided to combine their expertise in cash supply and ATM operations. By combining expertise, technology and a broad partner network, the two companies are developing an innovative approach to market challenges and, together with innovative partners such as Helveticor Ltd, are evaluating how to make cash logisticsThe term originates from military language and refers to the movement and provisioning of troops at war. In today’s business vocabulary, it refers to the management in particular, the transportation, storage and distribution of finished goods. More more sustainable and efficient.
By working together, SIX and Diebold Nixdorf are covering the entire cash supply value chain to ensure continuous optimization of ATM operations. For ATM users, this means the usual secure and reliable cash transactions, while banks benefit from leaner processes. The aim is to achieve efficient cash managementManagement and control of cash in circulation. More by offering all relevant operating and management services from a sole source. From site selection, preparation and commissioning to ensuring high availability and smooth transaction processing, the cooperation offers high-quality services through the use of state-of-the-art technology, software and services.
SIX and Diebold Nixdorf believe that ATM pooling is an indispensable contribution to an efficient, nationwide and reliable cash supply in Switzerland. With ATM pooling, the banks that operate ATMs will integrate them into a separately operated network. In particular, such a network would have the task of optimizing the operation of ATMs in terms of geographical coverage, operations and cash logistics in such a way that the banks can continue to guarantee their customers and ATM users comprehensive access to cash. ATM users will also benefit from state-of-the-art ATM technology and an expanded network.
The requirements for the implementation of ATM pooling will be discussed at an event in September with the Swiss banks as ATM operators.
The leadership of the Swiss ATM network is being challenged by the Post, which has launched it own ‘Cash Rescue Plan’. Swiss Post wants a single provider to guarantee the quality, security and high availability of cash in the future. In order for such a changeThis is the action by which certain banknotes and/or coins are exchanged for the same amount in banknotes/coins of a different face value, or unit value. See Exchange. More to take place, the cash business would be transferred from Postfinance to Swiss Post. The Board of Directors will decide later this year whether to proceed with this internal transfer.
All bank customers in Switzerland could benefit from a unified ATM network, according to Thomas Baur, head of Swiss Post’s postal network, who reveals that this proposal has aroused interest from other banks. It could lead to the elimination of ATM surcharging, when users withdraw cash from a third-party ATM, which generally costs CHF 2 per withdrawal.
According to Swiss media Watson, the Post aims to take over all the banks’ cash and teller activities, in addition to ATM transactions. According to a spokeswoman, Swiss Post could do for the banks what it has been doing for Postfinance for a long time, namely over-the-counter deposits and payments. The business model was presented by Swiss Post manager Simon Treichler at the Lucerne University of Applied Sciences banking conference.
In different circumstances, Swiss Post and Six are fighting for the same goal: more business, more use of the existing infrastructure and a secure future. For the banks they are after, it is the economic solutions that count first. The fact that pooling ATMs could create a more efficient cash system is hardly a bold prognosis.
However, it is not clear whether a single provider will guarantee better access to and availability of cash, more resilience in case of a natural disaster, cyberattack or IT outage and how much of this efficiency gain would ultimately accrue to consumers.