EPC looks to cut cash costs through ATM standardisation

I worked in ATM environments for UK banking for a long while and this for me raises some concerns.

Initially, if we're talking about Euros, the idea makes sense as its usually security companies who manage replenishment of ATMs - particularly out of hours - so carrying a standard cassette would simplify and therefore reduce costs.

However, there is one caveat. The overall money capacity for each ATM is based more on the overall risk status of the bank or off-site branch where the ATM is installed rather than its physical capacity limit. For example, an ATM in a gas station in a high-crime area would carry less money than a well protected bank branch in a pedestrialised and policed high street or mall.

There's a desire to go back to small notes to improve cash circulation around the retail economy. An ATM needs to be replenished more regularly when filled with small notes - that increases the risk profile as the ATM is opened more often and the cash exposed more.

Additionally, lower denomination notes means more cycles per operation. Dispensing 5 x 10 notes takes more cycles than 1 x 50 - places higher stresses on the ATM and its more likely to fail or wear.

If smaller denominations are introduced to allow standardisation, then costs would rise as the replenishment is repeated more - particularly during public holidays when demands on ATMs are higher.

Because we can't illiminate all these variables, the idea may not ultimately deliver the savings first thought.

As usual, a high level strategy that may not have been thought through properly!