The cash-in-transit industry is growing at a rapid pace across the world, as the number of ATMs increases exponentially. Already, around 80-85 percent of consumer transactions globally are performed using cash. According to ATM industry statistics, the cash-in-transit services market was valued at $ 17.8 billion in 2016 and is predicted to grow at a CAGR of 6–8 percent.
Cash-in-transit (CIT) vehicles are used for the physical transfer of cash and other valuable items from one location to another. In developed nations opting for cash transactions has become popular as a way to avoid credit card debts, while in developing nations increased earnings has given more cash to the public; resulting in the use of physical cash in both cases.
Growing Number of ATMs
The number of ATMs across the world has increased at a rapid rate, with the highest number of ATMs per 100,000 adults reaching 230 in 2017 in Canada from 184 in 2004. After Canada, the highest ratio of ATMs per 100,000 adults is in Portugal (167) and Australia (139).
The boost in technology and urbanization has also led to an increase in the establishment of ATMs, especially in rural areas. While China and India are considered to be the fastest growing markets for ATMs, they are already well-established in markets such as South Korea and Japan
ATM and CIT Industry Connection
There is a direct correlation between the growth of ATMs and the cash-in-transit industry, as the CIT industry plays an important role in supplying the ATMs. Wherever more ATMs are set up, whether in a rural setting or cities, CIT support is required to ensure that the ATMs are stocked and can provide users with cash.
Apart from simply delivering cash from one point to another, the cash-in-transit industry also has a task of adhering to banking regulations and maintaining the security of their cargo.
Importance of CIT
An increase in crime rates led to the outsourcing of cash handling services to specialist providers who can transport the cash in a more secured process. Apart from specialized vehicles and personnel, the CIT industry also uses continuous technology implementation by concealing tracking devices amongst the cash which can alert security personnel in case of theft and also aid in asset recovery.
Legally, CIT companies are considered to be logistic companies in the private security industry and accordingly have to comply with transport and security legislation of the respective country, specifying the types of vehicles, the minimum number of crew members, and use of firearms. Vehicles used for CIT services include soft-skinned, semi-armored or armored vehicles.
Challenges for CIT
As dependent as CIT is on cash transactions and transport of valuable goods, the rise in popularity of cashless transactions and digital payments poses a challenge to the CIT industry. Many developed nations are encouraging cashless payments which reduces the amount of cash-handling as well as the risk of theft.
However, for many regions across the globe, going completely cashless is not feasible, neither for the customers …