Whether cash has a future or not has been much debated in recent years. However, it is indisputable that coins and banknotes are still very popular in Germany. Due to the closure of bank branches and the removal of many ATMs, a question has been increasingly raised in recent months: Is the cash supply adequately secured? In 2023, the Bundesbank has given a clear commitment to this: Yes, it is!
Facts: fewer bank branches and ATMs
According to the industry association BVR, Volks- and Raiffeisenbanken dismantled around 1,800 ATMs from 2021 to 2022. At the same time, bank branches are thinning out their networks. Just over two years ago, every tenth branch was at risk of closing. In 2023, according to the Bundesbank, another 1,266 branches were closed. It is the same for everyone: whether savings banks, Volks- and Raiffeisenbanken, or major banks like Commerzbank and Deutsche Bank – they are all closing the doors of individual branches.
At first glance, these numbers seem alarming and suggest poor supply. In fact, the Bundesbank has clearly communicated this year that the cash supply is ensured despite the minimization of financial institutions and the reduction of ATMs. About 96 percent of Germans have a bank branch or access to an ATM in their place of residence. At the same time, the majority of the representative population survey rates the effort to obtain cash as low or very low, according to the results of the
Varied and close – access to cash
To get the average 100 euros for their own wallet, with which about 58 percent of daily payments are made in Germany, most still use the ATM. The significant reduction in recent years has not led to a loss of importance in cash withdrawal at ATMs. According to the monthly report, just over 80 percent of respondents still get their money from the ATM. 11 percent frequent the bank counter to obtain cash.
The options for cash withdrawal have also expanded in recent years to include an option that the population is now better accepting. This refers to cash withdrawal at the checkout, directly at the point of sale. According to the Deutsche Bundesbank, only 2 percent used the retail offer in 2017. Four years later, the proportion increased to 8 percent. To reach any type of withdrawal location, most do not have to travel a long distance as one might assume. Almost 80 million citizens, over 95 percent, travel an average of only 1.6 kilometers for this purpose.
Cash supply: Efficiency in the financial sector needed
The Deutsche Bundesbank clearly demonstrates with the representative study that the population has not lacked cash supply so far. At the same time, the preference for coins and banknotes is not just an established standard. Rather, the social value is high and cash will not disappear soon due to unrestricted participation and the protected privacy that cashless payment methods have not yet been able to unequivocally guarantee.
Therefore, it is also worth looking at the other side of the coin. Providing cash is often associated with significant costs and effort for banks. To ensure the cash supply and at the same time not reach their own limits, those responsible must develop strategies in a timely manner. The focus: cost-efficient and transparent processes, optimization of cash holdings, reduction of transport costs, and efficient management of cash logistics.
Our Interactive Cash Control Platform (ICC), for example, creates maximum transparency for the entire cash cycle and enables control and documentation among all involved parties – saving time, ensuring safety, and being resource-efficient for the environment.
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Make cash supply not only secure but also efficient.