Close up of 100 dollar bills
#Currency Management

High-tech cash processing in large economies

6 Mins.

Cash is much more than just a convenient and reliable means of payment for consumers. It is crucial in ensuring economic stability and inclusive, widespread access to payments for entire populations. The processes performed behind the scenes by central banks and other players in the cash cycle, which enable consumers to easily withdraw cash from an ATM, are more intricate and high-tech than most might think.

Maintaining a steady and widely available cash supply will be imperative for large economies for a long time to come, and continuous development in this space will guarantee that the processes become even more sophisticated and convenient for actors in the cash industry, as well as consumers.

The importance of a reliable and efficient cash cycle infrastructure and the continued relevance of cash in the future is shown by the decision of the Federal Reserve System (FRS) in the US to contract G+D to build the central bank’s next-generation high-speed currency processing equipment and associated software solutions. This means not only that the FRS has identified cash as a key pillar to uphold economic stability, but also that the effectiveness of the systems behind it is a decisive factor.

“Effective cash processing equipment is critical to our public mission in meeting global demand for US currency“
Mark Gould
Product Director of the FRS’s Cash Product Office (CPO)

The systems behind the scenes

“Effective cash processing equipment is critical to our public mission in meeting global demand for US currency, ensuring the quality and integrity of currency in circulation, and maintaining cost-effective operations,” said Mark Gould, Product Director of the FRS’s Cash Product Office (CPO).

G+D cooperated with the FRS for the first time in 1977, by shipping a lab model of one of the first fully automated high-speed processing machines to the Federal Reserve Bank of New York. In the following years, this prototype was refined into the ISS 3000 Compact, which was then upgraded through many iterations to today become part of the NextGen project – the FRS’s new generation of high-speed currency processing equipment based on the BPS M-platform. With an average throughput of up to 100,000 banknotes per hour, plus intuitive and secure operation, this platform represents a new age of cutting-edge banknote processing technology.

Dr. Wolfram Seidemann, CEO of G+D Currency Technology, agrees that technological advancements are crucial for the cash cycle. “The NextGen project will lead to a further leap in intelligent automation and digitalization of the cash cycle, which will benefit the whole industry,” he says.

ATM close-up of a man taking dollars
Intelligent automation and digitalization of the cash cycle will benefit the entire industry and enable continually growing demands to be met

The importance of continued development

Such technology will be the cornerstone of the high-speed processing world for the FRS, ensuring that operations remain productive and that the continually growing demands of the cash industry are met. Embracing automated, standardized, and digitalized solutions will also ensure that cash will continue to be delivered in a timely, efficient, and affordable manner. Making cash printing and processing more intelligent and efficient helps to lower the cost of cash – a benefit for consumers using it, as well as for banks and retail outlets receiving, processing, or storing cash. It also sets cash as the benchmark for other means of payment.

Furthermore, streamlined and secure banknote processing ensures that unfit or counterfeit banknotes are quickly removed from the cash cycle and that the general public can always enjoy a safe and reliable way to pay. Software development will also occur in parallel to the rollout to heighten visibility and control, allowing operators not only to better monitor cash levels, machine statuses, or transport routes, but also to predict them. Software helps to increase transparency in cash processing and introduce a greater degree of collaboration between players.

The fact that the FRS has signed this contract signals the intention for long-term cooperation and the US’s trust in cash. It shows the importance of giving people the freedom to choose how they want to pay and for large economies to have a well-functioning cash cycle.

Dr. Ralf Wintergerst, G+D Group CEO, remarks, “Building on a history of continuous improvement in system performance, service excellence, and market-leading technical support, we are proud that the FRS has continued to put its trust in the people and technology of G+D.”

Published: 07/10/2020

Share this article

Subscribe to our newsletter

Don’t miss out on the latest articles in G+D SPOTLIGHT: by subscribing to our newsletter, you’ll be kept up to date on latest trends, ideas, and technical innovations – straight to your inbox every month.

Please supply your details: