New research is out showing that the market for money counter machines is expected to by about 5% between 2016 and 2020. Analysts at Technavio issued their finding about the compound annual growth rate (CAGR), in a new report, according to a press releaseandnbsp;the firm recently issued. The cash counters are often used as part of a business’s cash management accounting system.
Technavio’s research looked at the current usage and where they thought there might be growth possibilities for this kind of cash management accounting system for the years indicated. They used the revenue that had been created by currency counter machines sales, as reported by sellers of the machines.
There are a lot of companies and industries that benefit from the use of currency money machines and a number of reasons for wanting to use them for their cash management accounting system. Some reasons businesses turn to currency counters are:
- They are more efficient at counting currency. Whereas a person will count cash three times to make sure they got it right, the machine only has to do it once.
- The machines are more accurate.
- The currency counters can spot counterfeit currency faster and more accurately than people can.
- The money counter machines can be programmed to accept and recognize multiple currencies.
- They can provide easy to manage reports about cash flow, which can be used for tax reporting and other needs.
- They can count coins as well as bank notes.
- They can take in cheques.
- Cash counters have easy to read LED displays.
- Cash counters cut back on theft by employees because the amount of money taken in is recorded automatically.
These machines are used by industries such as the casino business, retail stores and banking, financial services and insurance (BFSI). Anytime a business has to take in and manage a large volume of cash, these machines make their cash management accounting much more easy to handle and accurate.
The real challenge facing the cash counter market is the increasing reliance on digital payments and money transfers, especially in the BFSI industries. This has been most apparent in developed areas such as North America and Europe. Many banks are forgoing the brick and mortar establishments for a purely online presence.
Ally Financial is a bank that has no branches at all. Headquartered in Detroit, Michigan, the bank has almost 7,000 people working for it but it is a totally online bank. If customers need to make a deposit, they need to do it by mail. Institutions, such as this, are the only real impediment to growth in the cash counter market as they do not need such a cash management accounting system.
One area where cash counters are still very needed is the Asia Pacific (APAC) region where there are few bank branches. There are, however, a large and growing number of ATMs. The number of the machines grew by 15% in 2015 alone. There are about 156 million people living in Bangladesh. That country saw the number of ATMs explode in 2015 by 20%. This is mostly because there is no requirement for banks to receive any permission or license from the country’s central bank to install an ATM anywhere they like. Pakistan, India and China also showed a huge increase in the number of ATMs installed within their borders. All of this growth in the number of ATMs helps drive the market for cash counting machines.
“The number of ATM installations is set to grow during the forecast period. Hence, there will be a huge demand for cash counters in APAC. In 2015, Bangladesh had 45 ATMs per million people. Pakistan has 52 ATMs per million people, whereas China had 335 ATMs per million people,” said Abhay Sinha, a lead analyst at Technavio. “Retail banking channels like brick-and-mortar branches have faced the impact of digitization in the BFSI sector in developed economies, but the scenario is different in emerging economies. Banks in emerging economies such as India and China are opening branches to target the population that does not have access to banks. The increasing number of bank branches in emerging economies will drive the market for cash counters in APAC.”
It is clear that there is a robust demand for currency counting machines around the world.