"Cash is not dead, but its role is changing." A conversation with Frank Detlef Mayrle
Cashless payment methods continue to extend their lead over cash. In a recent study by the Bundesbank, 44 percent of respondents stated that they prefer cards and similar methods. 28 percent still prefer to use cash – and just as many remain undecided. This development raises various questions for businesses: How can a secure supply of cash continue to be ensured? What roles do regulation, digitalization, and IT systems play in this context? Frank Detlef Mayrle, Managing Director of HEROS Geld- und Werttransport GmbH and Director of Special Tasks at Sparkasse Leipzig, offers insights into a business model situated between tradition and digital transformation.
Cash: Relevance despite change
ALVARA: Mr. Mayrle, since 2011 you have held a dual role – as Director of Special Tasks at Sparkasse Leipzig and as Managing Director of HEROS Geld- und Werttransport GmbH, a subsidiary of Sparkasse Leipzig. From your perspective, how has the role of cash changed in recent years?
Frank Detlef Mayrle: Regardless of the industry, the importance of cash is often underestimated by decision-makers, sometimes too hastily, based on various studies. Even though many people now use – and in some cases prefer – cashless payment methods, cash remains a fundamental component of our society and economy. Especially in times of crisis, it is reliable, anonymous, and easy to use. So, cash is not dead – but its role is indeed evolving. Our task, both as a savings bank and as a cash-in-transit service provider, is to ensure the supply remains efficient, secure, and compliant with regulations.
How is the declining circulation of cash impacting your business model?
In recent years, I’ve observed a steady decrease in the amount of cash handled by our retail customers. This requires us to adapt our daily operations. Today, it’s no longer about handling large volumes but about providing flexible, high-quality services. Our processes need to remain scalable – not in the sense of “ever more,” but in terms of adaptability. We must be able to operate efficiently, securely, and economically even with smaller order volumes.
I am convinced: cash will remain. It strengthens individual and societal resilience and autonomy and continues to be the payment method with the highest level of data privacy. But the focus is shifting – toward quality, targeted availability, and enhanced security. For cash logistics companies, this means: more IT, more logistics, more regulation – but also new opportunities to position ourselves as forward-thinking service providers.
What strategic considerations arise from this for HEROS Geld- und Werttransport GmbH and its parent company – Sparkasse Leipzig?
As part of Sparkasse Leipzig’s “Payment” project, a strategic framework for cash handling was adopted in 2020 as a sub-strategy:
When it comes to cash services, no one does it better than we do. Cash will continue to be an essential payment method for our customers and therefore remains an integral part of our business model. We provide our customers with excellent service, and they acknowledge this through fair compensation.
The processes revised and newly implemented within this project – particularly the Safebag procedure using Interactive Cash Control (ICC) from ALVARA – have fully met our expectations in terms of efficiency and security.
At Sparkasse Leipzig’s cash centers, customers have access to all deposit and withdrawal options for banknotes and coins. For business clients, HEROS also offers individual cash delivery and pickup services.
In addition to our parent company, HEROS is now also working with two other regional banks and is currently in negotiations with further institutions.
IT as the Backbone of Modern Cash Logistics
Could you specify how IT contributes to a well-established infrastructure?
Our processes – from route planning and real-time monitoring to inventory management and billing – must be efficient, secure, and audit-proof. To achieve this, we need a flexible and high-performance ERP system. It forms the operational backbone of our business and ensures that we meet both regulatory requirements and customer expectations.
In this context, HEROS has opted for the ERP system from ALVARA. What role would you say such a system plays in the development of new services?
A crucial one. Our ability to implement new services quickly depends heavily on the system's flexibility. Whether it’s adding new routes and stops, maintaining constant control over cash movements, or collaborating with our clients – we can manage many processes and changes through rule-based configuration in the backend.
What advice would you give to companies currently considering the introduction of an ERP system?
“Choose a partner who truly understands your industry!” In cash and valuables logistics, there are not only highly specific processes, but also special requirements: security, traceability, and regulatory compliance. The ERP system in use must be able to reflect all of these. Just as important is professional project management – and close, collaborative partnership.
Between MaRisk, BAIT and DORA: Regulation as a Daily Reality
That brings us to the topic of regulation: What significance do MaRisk, BAIT, DORA and KRITIS have for your industry – and specifically for your day-to-day operations?
Since 2019, the requirements of the German Federal Office for Information Security (BSI) have classified HEROS as a critical infrastructure service provider. Without the support of our parent company, we would hardly have been able to meet these demands as a medium-sized cash and valuables logistics provider.
Personally, I believe that these formal regulatory requirements should not only be seen as a burden. An Information Management System and a Business Continuity Management System are essential for modern logistics providers – even without mandatory regulation.
A concrete example is joint emergency drills between the cash-in-transit provider and the bank, to ensure that processes and resources are available in critical situations to maintain operations. In the end, this will be a key factor in acquiring and retaining clients.
Digitalization in Daily Practice
How would you assess the importance of process digitalization in terms of business success?
It is clearly essential. Tasks that used to be handled manually are now managed through interfaces, digital route planning, and mobile data collection. Vehicles, the control center, and billing systems communicate in real time. This not only increases efficiency, but also enables the cost-effective handling of smaller orders – which are becoming increasingly common.
How does the collaboration with Sparkasse Leipzig work, especially in light of new requirements?
As a subsidiary of Sparkasse Leipzig, we benefit from short lines of communication and a deep understanding of their needs. Our ERP system helps align regulatory and operational objectives, while creating transparency in daily operations. Centralized reporting and automated billing further facilitate collaboration.
A brief digression, Mr. Mayrle: Recently, tagesschau reported increased costs for banks due to the digital euro. What’s your take: Is the digital euro a long-term complement – or a risk – to existing payment and security infrastructures?
The tagesschau was referring to a recent PwC study, which estimates that introducing the digital euro could cost European banks up to €30 billion, especially due to necessary upgrades to ATMs, cards, payment terminals, and banking platforms. Critics also warn of an “innovation backlog,” as up to 50 percent of IT resources could be tied up for years.
If key IT and technical resources are committed to implementing the digital euro, there is often little room left for urgently needed innovation elsewhere. That’s why, as of today, I would say: The digital euro and modern cash management are not inherently contradictory – but they do compete for the same resources. Without strategic prioritization or additional budgets, innovation could be delayed. And when that happens, traditional cash management often loses out – even though cash still holds significant societal relevance, as do the processes behind it.
Mr. Mayrle, thank you very much for sharing your insights on the development of cash and giving us a glimpse of how cash stakeholders can manage it in a modern way.
My pleasure. I hope more companies will commit to technological innovation and strategic partnerships to adapt cash management to current developments. Ultimately, that is what creates real added value for their own organizations.
About the Person
Frank Detlef Mayrle studied at the University of the German Bundesbank and the University of Finance and Management. Since 2011, he has served on the one hand as Director of Special Tasks at Sparkasse Leipzig, and on the other as Managing Director of HEROS Geld- und Werttransport GmbH, a subsidiary of Sparkasse Leipzig. His dual role gives him deeper insights into cash management—from both the perspective of financial institutions and a cash-in-transit service provider.