Cash recycling synchs
with Finnish efficiency
Automatia feels the time is ripe for cash recycling
in Finland. The ATM operator company runs the
country’s network of 1,600 automated teller machines.
Jyri Marviala · Head of Development at Automatia
S
isu is a Finnish term that has no one-word
equivalent in English. It describes a characteristic of the Finns and stands for a combination of vitality, courage, confidence and tenacity. Measured against other EU countries,
this attitude to life has helped the Finns reach
the pinnacle in many fields, and today they are
one of the most competitive and efficient nations in the world.
Efficiency has likewise been the focus of
operating the nationwide ATM network since
it was originally set up in 1994. At that time the
country’s three biggest banks – Nordea Bank,
OP-Pohjola Group and Danske Bank – founded the ATM operating company Automatia.
“Many bankers were looking for cost-savings
in the aftermath of the banking crisis in the
early 1990s, so it was against this background
that the task was to optimize the ATM channel,” explains Jyri Marviala, Head of Development at Automatia. The current customers of
this interbank company are all ten universal
banks in Finland, with more than 1,600 ATMs
and 115 night deposit boxes. Automatia is also
in charge of banknote and coin logistics for
some 1,000 bank branches.
Strategic evolution of the network
All this is handled by fewer than 30 employees.
The magic word is re-outsourcing. Automatia
owns the processes and manages cash-in-transit operators, service companies and system
suppliers, thus ensuring that consumers can
obtain cash from ATMs in the country, usually free of charge as is customary in the Finnish market. As in other Nordic countries, cash
transactions are on the decline in Finland and
currently constitute around a third of all payment transactions. But, as Marviala confirms,
“cash will remain.”
Automatia is dealing with the strategic
evolution of the Otto ATM network (Otto =
Finnish for withdrawal). “We have always subjected the functionality of our ATMs to continuous benchmarking,” says Marviala. Also
new services that have proved feasible, have
been offered to consumers. One function that
was chosen was the topping up of prepaid mobile phones, which was added back in 2003.
Since 2010, it has been possible to book the
displays for advertising campaigns, and a donation function has been available since 2011.
To avoid preferential treatment of individual banks, however, on-screen advertising does
not relate to banking services. Instead, advertisement on the ATM screens, for instance,
BENEFIT CHECK
– Immediate crediting/debiting thanks
to cash recycling
– Greater security
– Extensive process automation
AUTOMATIA
Founded in 1994, Automatia operates the
ATM network in Finland under the Otto
brand on behalf of ten banks. The company’s
tasks also include the entire cash logistics
for the banks’ branches and operation
of a network of joint night safes.
www.otto.fi/in-english/
promotes telecommunications services or the
latest gaming consoles.
Reduce manual cash handling
Cash recycling wasn’t an option for a long
time for the efficiency-oriented company. In
2011, however, the company set about looking for “the perfect solution,” and found it.
From spring 2013 cash recycling will not be
just an option – that’s when piloting of the
first CINEO cash recycling systems will start.
Coins were also addressed at the same time,
and a coin deposit module has been integrated in the system. “The technology is mature,
and cash recycling also offers benefits when it
comes to total cost of ownership,” as Automatia’s Head of Development points out.
The banks’ branches were doing more and
more cashless business. Besides, manual handling of cash involved significant effort that
could hardly be justified any more. Another argument in favor of installing cash recycling systems was the immediate crediting and debiting of accounts. Marviala points out one of the
advantages compared to anight safe: “When a
private individual or the owner of a small store
deposits money in a night safe, it can take several days until the amount is credited.”
He sees the business case for cash recycling as follows: “In the worst case scenario we
simply have better service, immediate crediting and debiting and greater security than for
cash deposits in night safes.” In addition, bank
staff can be relieved of routine tasks such as
counting cash and posting the details. “In the
best case, though, we will halve the cost of a
deposit transaction,” as Marviala predicts. He
sees advantages in cash recycling in relation to
the processing costs per banknote, adding, “we
will know more in six months’ time.”
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