Heads and Tails
Where one goes the other follows – banknotes need coins and coins need banknotes. That is why G+D is strengthening its role as a full-service provider for the entire cash cycle, using solutions from Procoin GmbH and NGZ Cash Automation. This development means that our customers benefit from a single comprehensive service, which can lower the combined costs of dealing with coins and banknotes over the long term.
In soccer you’ll hear that the round one has to go into the rectangular one. But the ball is not the only round thing to play a decisive role in the game: first it is a coin – even before the match begins – which the referee flips to decide which team will kick off the match. It just comes down to heads or tails!
But there’s much more to a coin. It doesn’t just determine how a game is played – it can make an impression that lasts a lifetime. “It’s with coins that children learn how to deal with money. Whether by getting an allowance, on World Savings Day, or as a reward for good grades, the coin is our first contact with money,” remarks Christian Tropp, Director of Global Business Development Currency Management Solutions at G+D.
We have our first experiences of cash with coins.Christian Tropp, Director of Global Business Development Currency Management Solutions at G+D Currency Technology
As Long as Banknotes Exist, the Coin Will Live On
Usually our first positive experiences of cash involve coins. There are certainly plenty of them around: Between 2015 and July 2018, the total number of euro coins alone increased from 116 billion (2015) to nearly 129 billion (July 2018), according to the European Central Bank. And in the same period, their total value grew from 26 billion to 28.6 billion euros. “For us, it’s not the value of the coins which is crucial, but rather the number of coins in circulation,” says Tropp. While there are 540 billion banknotes in circulation globally, there are around a trillion coins. “You could say that the banknote needs the coin just as much as the coin needs the banknote – unless pricing were to be revolutionized in such a way that products in the supermarket, for example, were only sold for round amounts.”
Portfolio for the Entire Cash Cycle
It costs two cents to make a one-cent coin. Production costs which far exceed face value are one of the reasons why five countries – Finland, the Netherlands, Belgium, Ireland, and Italy – out of the 19 in the Eurozone decided to stop minting one- and two-cent coins from the start of 2018. That said, a coin is designed to last 30 years and is virtually indestructible. It might sink to the bottom of the Trevi Fountain representing a cherished wish, or forever lost under couch cushions or the floor mat in your car – but it still survives.
Tropp points out that the cost of the banknote-coin pairing needs to be continually and consistently brought down. “With this in mind, our partnership with Procoin and NGZ emphasizes our ambition to shape the cash cycle in a sustainable, reliable, and efficient manner.” G+D’s takeover of Procoin in 2017 did not simply constitute the addition of coin-related services to their existing offering; it also completed its portfolio, making it a full-service provider for the entire cash cycle.
Coins and Banknotes: the Perfect Couple
Automated Packing Solutions for Coins
The strategic partnership with NGZ gives G+D access to automated packing solutions for coins which Procoin was not previously able to offer. “NGZ offers something you could describe as a NotaTracc® / NotaPack® packet for coins,” explains Tropp. In future, Procoin coin processing machines in cash centers will also feature NGZ packing machines.
“This collaboration enables us to meet all relevant demands in the coin cycle, from coin sorting and checking right through to packing. We are also able to offer this in cash centers of any size, whether in central banks, cash-in-transit companies, commercial banks, or the retail trade,” adds Marcus Nau, Managing Director of Procoin GmbH. “Customers see a particular benefit from the solutions which NGZ offer to make cash handling more efficient – and these integrate perfectly with G+D’s range of intelligent automated solutions for banknotes.” The product-related collaboration also extends to a custom-tailored comprehensive range of services.
G+D’s coherent service concept means crucial added value for the customer.Marcus Nau, Managing Director of Procoin GmbH
Extensive Global Service Network
“We benefit from G+D’s extensive service network of 1,300 service technicians and numerous additional regional partners,” Nau continues. For Andreas Radmer, Managing Director of NGZ Cash Automation, the coherent service concept and one-stop approach to processing both banknotes and coins mean crucial added value for the customer.
Radmer believes that it is not simply the availability of a large number of service technicians which customers value, but the skill and expertise that those technicians demonstrate. “Both in central banks and CITs, cash center operators and employees know and appreciate the service technicians, and so our customers are extremely satisfied with the service they get from G+D,” says the NGZ Managing Director. “That’s good for us as well, of course, especially as coins and banknotes are often processed in adjacent rooms or areas.” It is also noteworthy here that customers seldom buy individual components, as they usually operate a number of devices working together.
The one-stop approach provides a guarantee of performance as all components work together seamlessly.Andreas Radmer, Managing Director of NGZ
A Sustainable Partnership
“The notion of everything being offered from a single source provides a guarantee of performance in this regard, as all components work together seamlessly,” explains Radmer. For G+D, the future of the coin is very closely linked to the future of the banknote – and vice versa. “In fact, we now have the opportunity, together with Procoin and NGZ, to provide our customers with an interoperable and modular system for coins – just as we already offer for banknotes. This system encompasses everything from container systems and coin lifts right through to automated packing solutions,” enthuses Christian Tropp from G+D Currency Technology. So forget heads or tails; instead, think of coins and banknotes together – the round metal ones alongside the rectangular paper ones.