Catalyst News

Cash is Still ‘Alive and Well,’ Recent Payments Data Shows

by Catalyst Corporate | Sep 08, 2020

Despite speculation that COVID-19 may only push cash closer toward the brink of extinction, a recent study shows that this long-standing payment method is “still alive and well.” However, the post-pandemic payments landscape presents financial institutions with new considerations, making effective cash management a rising priority.

As reported by PaymentsJournal, the Cardtronics study entitled, “Health of Cash Check-Up May 2020,” compared consumer payment preferences from fall 2019 to April 2020.

“In the fall, 16% of all consumers picked cash as their overall most preferred payment method. By April, well into the pandemic-induced lockdown, 15% of consumers expressed the same sentiment.”

Although overall payment volume has decreased in response to the global pandemic, the virtually identical findings underscore the fact that cash is still widely used in today’s economy.

“While all payments have declined in absolute terms, cash has not declined as a portion of the payments mix or in consumer preference, proving the resiliency and continued importance of cash as a consumer payment choice.”

With an increased demand in self-service banking options and the ongoing national coin shortage, a strategic approach to cash management optimization provides key benefits. These factors have created new patterns and cash forecasting needs for credit unions to consider – such as reduced transaction frequencies, but increased withdrawal values at ATMs. So, it’s important to closely monitor current transactions and cash withdrawals to ensure the proper allocation of funds.

Comprehensive cash management tools, like Vault View from Catalyst Corporate, take the guesswork out of forecasting. Powered by advanced analytics, Vault View uses precise algorithms to allocate optimum cash inventory levels – reducing operational costs and enhancing member service by ensuring cash is available when they need it.

Vault View offers:

  • Accurate cash orders and deposits based on branch and ATM historical usage, operational limits and delivery schedule
  • Analysis for denominational demand of branches and ATMs, resulting in optimal cash levels and the appropriate denominational mix, further facilitating positive member experiences
  • Ability to reclaim idle, excess cash from vaults and ATMs and relocate to investment opportunities, providing a boost to earnings

Additionally, Catalyst Corporate’s Vault Cash Service can help further streamline cash operations and maximize efficiencies. With Vault Cash, credit unions can place coin and currency orders from the convenience of our online portal, TranZact.

Vault Cash Service benefits include:

  • Combined credit union volumes that result in the best possible pricing
  • Debit of the credit union’s Catalyst Corporate account the same day the order is ready for pick-up
  • Ability to select the armored courier service that best suits your needs
  • Activity settlements and billing are consolidated in the credit union’s corporate account

Want to learn more about complete cash management with Catalyst Corporate? Let’s get started.