Advanced Currency Management: a road map for the future

As the currency industry stands on the brink of a new digital era, facing a world of virtually endless possibilities, it will need a new approach. For more than 167 years, G+D has used its expertise, insights and unwavering commitment to cash, driving both physical and digital solutions, to help steer the industry through numerous milestones and evolutions.

Now, at this transformative time, we are once again ready to present a roadmap for the future. One that recognizes that there is more to digital transformation than technology. One that understands that the digital should not eradicate the physical but, rather, empower it. If our industry is to thrive, it will need an approach founded on confidence and security, unprecedented efficiency, innovative digital advancement and an open, collaborative, integrated currency cycle. An approach we call Advanced Currency Management. Join us, as we explore and build the future of cash, together!



A banknote that meets today’s needs

What is a banknote? A mode of currency, yes, but what else? Certainly, it is an expression of country’s culture, history and future aspirations. It represents not only financial worth, but also trust and personal freedom. As such, in order to fulfill its important role, any effective, modern and innovative banknote must embody certain core characteristics and fundamentals…

Durability:

Increasing the durability of banknotes delivers a wide range of benefits, from reduced costs to improved sustainability. Our innovative technologies focus on durability to ensure a long circulation life, even in countries with more-extreme climate conditions, while also enabling beautiful, culturally significant design.

Security:

The questions of trust and currency are inextricably linked. In a world of increasingly sophisticated technology, industry-leading innovation that combats counterfeiting is vital. For this reason, we offer enhanced security technology, such as substrate embedded features and intelligent front-to-back verification. Furthermore, by incorporating cutting-edge innovations such as micro-mirror technology, which uses up to four million mirrors per square centimeter, we are able not only to deliver revolutionary security, but also to unlock new and exciting design possibilities.

​​​​​​​Sustainability:

Since currency is as much a promise for the future, as it is a function of today, sustainability plays a vital role. In creating our banknotes, this has meant several things. For one, it means making considered decisions and focusing on the usage of renewable raw materials, cotton waste material and as little plastic as possible. Furthermore, it means the responsible handling of resources and the development of highly durable substrates and features to minimize waste and impact. In other words, we are invested in making our value chain sustainable.

As the founding pillars of our banknote approach, these three characteristics also lie at the core of our innovative Hybrid ADDvance® technology – a two-composite substrate designed to meet the requirements of a diverse, modern world.

> How the interplay of substrates and security features can enhance efficiency across the complete cash cycle

Efficient banknote production

Banknotes need to combine design with high-tech developments, making the banknote production process particularly challenging. The “Design for Production” principle enables the symbiosis of design and production.

> Ensuring robust production chains and on-time delivery



Scalable solutions: the determining factor

What is the real relevance of automation to the cash cycle? Is it hype? A daring challenge? A new opportunity? Or something else entirely? One thing is for sure: automation is here to stay, and it brings with it a completely new set of cash-cycle requirements.

A shift to the future

New possibilities give rise to new expectations and new dynamics. A cash cycle that communicates, one that “produces,” one that transports and, most importantly, one that works differently from the way we are familiar with today is in the cards for the near future. In terms of security, efficiency and serviceability, this type of shift will require an adaptation of operating capacities. A transformation that will need to guarantee that each currency cycle’s infrastructure is prepared to meet future challenges – a bridging of present and future through discussion, planning and implementation of efficient, scalable solutions.

A new generation of scalable solutions

What will these solutions look like? First of all, they will be defined by their ability to deliver a level of automation on demand. Furthermore, they must be truly scalable – from entry-level options to comprehensive automation solutions – in order to adapt to future technologies. Finally, they will need to be able to seamlessly integrate software applications, while simultaneously delivering efficient operations, transparency and security. And, given the digital landscape, they will also have to be geared toward integrated inventory transparency and business process management, to meet the highest demands.
That is a lot. There is no denying that the transformation will require a broad range of expertise, including an accurate overview of software, equipment, components and services, if cash centers are to remain competitive, future-ready and prepared for the challenges ahead. We are as aware of this as we are of the fact that technology cannot and must not stand still. Scalable solutions and updates will guarantee and stabilize reliable, secure processes in the background of the currency cycle.


Smart investment protection is individual

When it comes to reliable and effective smart service concepts, there is no one-size-fits-all solution. Service models must be tailored to individual requirements and resonate with you.
In order to be successful and protect your investments, a smart service concept must be informed by what drives your business, your operations and your philosophy. Moreover, if it is to enhance value, it must also meet your expectations of how service-system operations should be improved.

Connecting values

The increase and spread of new, connected products within the currency industry has generated large amounts of data and triggered the development of an increasing amount of internet-based services across all sectors of the cash cycle. As a result, digital value-added activities have also become more dynamic. Importantly, advancing digitalization and the growth of smart service providers have enabled new value-creation mechanisms, primarily handled via the platform economy. Characterized by players engaged in business and logistical relationships with each other, this type of economy relies on effective integration. Connectivity is key and must be successfully addressed if it is to drive higher efficiency.

A smart future

Ultimately, the factors that will shape the future of smart services are manifold. Our smart service portfolio includes:

  • Video Assisted Support – give or receive help using video transmission
  • Access to G+D Xpert – digital Knowledge Base with a manual, other helpful documentation and interactive troubleshooting
  • Dynamic maintenance – flexible preventive schedules and rapid machine maintenance
  • Connectivity – networking and connectivity between systems, e.g. remote troubleshooting
  • Health Monitoring – utilization of machine data for real-time analytics

A reliable and efficient smart service setup must keep agility and variety in mind and comprise a maintenance mix that falls within the triangle of availability, cost and risks. Moreover, it must perfectly match your business’s individual requirements – both current and future – if it is to deliver even smarter protection for your investments


Automation and optimization

Alternative payment methods are putting cash under increasing pressure. Cash must find ways to remain attractive and become more cost-efficient. It's a goal that, we believe, will require a journey that integrates advanced automation modules into a fully optimized and digital cash cycle.

The cash cycle of today

Efficiency killers, such as labor costs, packaging waste, inconsistent deposit methods, poor quality of deposits, manual work, cumbersome supervision and other logistical concerns, are some of the greatest pain points faced not only by cash centers, but also by the industry as a whole. As such, they represent a considerable piece of the efficiency challenge – one we are attempting to solve with our innovative NotaTracc® Trays and NotaTracc® Loading Modules.

Championing the next step in our vision of cash processing, the NotaTracc® solution greatly reduces manual labor and logistical bottlenecks, while increasing security. Importantly, while cash centers derive a clear benefit from the optimization of their operations, the entire cash cycle has something to gain.

The cash cycle of tomorrow

For the cash industry to make the journey from the present toward a cost-efficient, secure, automated, seamless, lean and green cash cycle, it must undertake three important steps:

  • Standardization – an adoption of standardized trays by all players, to drive optimization and increase efficiency across the entire cash cycle.
  • Collaboration – a suite of tools connects partners beyond their borders in the cash cycle: hardware for automation of cash handling, software for a seamless dataflow.
  • Digitalization – a transformation of trays into Internet of Things (IoT) devices to utilize intelligent algorithms for analyzing data and delivering a continuously optimized end-to-end process, focused on efficiency.

We place huge value on advanced automation and software solutions. And we believe that digitalization will build upon this foundation in important ways. Digital tools will enable a better understanding of the banknote life cycle and the state of banknote processing systems, allow us to identify efficiency bottlenecks in cash centers and enhance the convenience of public access to cash. Our vision dictates that cash must go digital and it will secure its place in the payment landscape of tomorrow.



Virtually identical: why the cash cycle needs digital twins

As the currency industry faces a new, digital and agile future, the cash cycle must transform if it is to effectively overcome the challenges of the day. New demands placed on the industry include the expectation that it will follow others in becoming more adaptable, intelligent and responsive. Digital twins, which build a bridge between the physical and digital, represent an essential component of this intelligent digital direction.

Connectivity, connection and shared DNA

In the real world, identical twins share DNA and a special connection. Digital twins, which constitute an image and a digital representation of physical assets, share similar characteristics. As virtual copies of physical objects or systems, created through data-transferring sensors, they utilize connectivity and communication to deliver a myriad of digital possibilities, on multiple levels. For example, in the case of connected cars, digital twins can store extensive vehicle data, like real-time geoinformation, to provide location-specific warnings. This distinct ability to deliver accurate and instantaneous data insights positions digital twins as an essential component of intelligent digitalization.

Digital twins within the cash cycle

The currency industry is increasingly meeting digital challenges, ranging from keeping the costs of cash low, to bank branch transformation, to new ideas such as Facebook’s Libra project. In this rapidly changing, uncertain world, digital twins of machines and banknotes could help to monitor and optimize the currency cycle and maintain its competiveness.

Within the G+D world, an example of digital-twin technology exists in our Performance Dashboard, which offers the first step of the transformation into a digital cash center. The integrated end-to-end solution optimizes banknote processing and operational efficiencies, supported by operational data. Its state-of-the-art user interface provides access to configurable real-time performance indicators, such as volume of processed notes, throughput, reject rates and overall machine status, to deliver an exceptional level of data insight and elevate operational excellence. It is an important first step toward something grander – a powerful vision for our integrated digital future.

 


Software drives performance: how to future-proof your cash operations

The conversation has shifted; the pressing question is no longer whether digitalization will happen but, rather, how! Every member of the industry is examining potential avenues and the role software will play in helping to shape the new digital landscape. One thing is clear: cash demand is strong. The challenge is how to ensure it remains competitive and relevant in a digital future.

A shift in digital mindset

Most of the world’s population lives in countries in which more than 90% of transactions take place with cash. As the world’s GDP increases, the volume of cash in circulation is also expanding to meet the demand. This reinforces the need to keep cash simple, available and competitive. The adoption of new supply chain concepts and technological trends can help to realize this goal, while also drastically improving operational efficiency.

When looking at the trends shaping today’s cash cycle, we see a desire for connected, optimized and adaptive solutions. We need an integrated supply chain management approach, which is capable of connecting the cash industry stakeholders in a way that addresses individual needs, while also unlocking hidden potential for multi-faceted optimization. Technology is an instrumental part of realizing a cash-friendly digital future as it drives transformation away from the management of individual functions and toward integrated solutions.

Embracing digitalization

In order to move forward, we must first replace the linear nature of today’s supply chain with a circular, interconnected and collaborative model. In doing so, we embrace an agile, IT-enabled approach that views the supply chain holistically and utilizes technology to exchange pertinent data, information and insights at multiple touchpoints.
As we enter the digital age, analytics based on this form of collaboration are no longer a nice-to-have – they are a must-have for driving efficiency and optimization at both the micro- and macro-economic level. The benefits of such intelligent solutions range from the streamlining of internal processes and realization of faster reaction times, to predictive forecasting. For example, intelligent systems, which calculate numerous variables to offer best-case scenarios, could enable efficient management of stock availability across the whole supply chain. Furthermore, insights gained from comprehensive multi-year forecasts across the cash supply chain could inform and help to realize enhanced cash recycling and cost savings potential. In other words, a software-driven integrated supply chain approach has the ability to future-proof your cash operations.


Intelligence and data: the perfect match for driving the cash cycle

Advances in data analytics, machine learning and artificial intelligence have led to the use of data intelligence to forecast demand, optimize the cash cycle and measure anti-counterfeiting effectiveness. Driven by an increasing volume of data in the cash cycle, a clear need has arisen for intelligent IT solutions that encompass sophisticated software, greater computational power and a secure network infrastructure. But that's easier said than done…

Securing intelligence

A rapidly progressing Industry 4.0 revolution requires expectations to be reassessed and views to be broadened. Even if software is able to make the benefits of Big Data available by collecting and "cleaning" the right information, a further critical component must be addressed. Namely, it is crucial for software to be combined with cutting-edge information technology that is based on a secure network infrastructure, if it is to maximize clarity within the cash cycle and between various stakeholders. Only this holistic approach can deliver the true potential to transform the production, management and governance of the whole supply chain and prepare it for the challenges of a new, digital landscape.

Mastering Industry 4.0 with integrated systems

Advanced Currency Management relies on the combination of analog processes with digital solutions - adaptability and synchronization on one side, and system and data integration that is contained within an open, secure and stable ecosystem on the other. It calls for a rounded management approach that builds and secures an efficient end-to-end supply chain and generates more value through connectivity, an approach with a continuous improvement mentality, which takes a long-term view and updates infrastructure by collaborating with supply chain partners and customers alike. In other words, it calls for a shift away from linear connections and processes toward a more interconnected, open mindset.
Championing the concepts of open collaboration and holistic solutions, we combine synchronized planning, connected customers, forecasting, intelligent supply and predictive collection to accomplish three main goals:

1. Monitoring, planning and optimizing smart cash center operations

2. Forecasting the demand and supply of cash and the quality requirements of banknotes

3. Connecting both ATMs and vaults to ensure an intelligent supply of cash based on real demand

By taking this comprehensive view, we create a tangible, virtual direction for the industry and ensure that the cash cycle not only meets but also masters the Industry 4.0 revolution.



A vision for the future: Open Currency Cycle

It is no secret that the world is changing. That it is becoming more digital, more connected. That it is growing closer, yet expanding into uncharted digital territory. However, although it is often associated with challenges, first and foremost, this transformation offers new opportunities. It presents a chance to realize a vision – one of an open, adaptable and collaborative cash cycle that will elevate the industry as we know it. 

Currently, two major components are driving industry innovation: security and efficiency. However, if we want to realize full digital potential, we must address the barriers that exist in the realms of connectivity and communication. And this requires a shift in mindset.

Specifically, we must embrace three core principles:

Openness

An open currency cycle enhances the connectivity between its players, thereby increasing transparency and facilitating data sharing. Transparency optimizes cash availability management. Moreover, extracting data and turning it into knowledge allows for fact-based decision-making based on the real-time KPIs of sites, machines and resources along the whole cash cycle.

Adaptability

According to Darwin, it is not the strongest species that survives, nor the most intelligent, but the one most responsive to change. This is valid for the cash cycle as well. Demands on cash cycle infrastructure and necessary capacities are varied, therefore flexibility through adaptable, scalable and modular solutions is key to ensuring cash cycle efficiency.

Collaboration

Advanced Currency Management is based on a new mindset and interconnectivity between players within the cash cycle. A collaborative approach uses these relations and adaptable solutions to generate new business models, such as multi-bank cash centers, outsourcing, or new currency infrastructures.

In so doing, we can work together to secure the attractiveness of currency in circulation – now and in the future.


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Giesecke+Devrient Currency Technology America, Inc

+1 703 4802113

currency-technology-usa@gi-de.com

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