21st Century Cash European Cash Report 2016

Modernising Cash

Future of Cash 2016

European research5 years tracking the state of cash

2011 2013 2016 “European Cash Report”

“Future Scenario” ReportNetherlands

Future of Cash 2016

Why undertake The European Cash Study?

Role of cash in a changing landscape

What makes cash special (or

not)Range of cash cycles across

EuropeCross-country

trends

Encourage dialogue

Promote supply chain collab-oration

Understand & share

Future of Cash 2016

Cash report structure

1. EU Trends, Objectives & Key Themes2. EU Statistics3. Cross Country Comparisons4. Observations5. Future Scenarios6. Key findings & Closing remarks7. 28 Country Pages

28 EU countries Report Format

Future of Cash 2016

Cash is growingATM withdrawals and CIC

Electronic payments are growing faster

New payment methods and new ways to buy

A multi-pace Europe, with faster expectations

The State of Cash in EuropeKey Findings

Future of Cash 2016

But there has been a paradigm shift in thinking

FROM“Cash will

disappear…it has a definite

Shelf Life”

TO“Cash will remain: Europe cannot do

without cash”

“Cashless” “Less-Cash”

Future of Cash 2016

The volume of cash transactions is increasing

Future of Cash 2016

But Access is Shrinking

Bank Branches Declining ATM deployment flat (2014 = France only)

Future of Cash 2016

Proportion of non-cash payments is increasing

Future of Cash 2016

Yet cash remains predominant

60%

Of all payment transactions in Europe are cash

Future of Cash 2016

A two-speed cash Europe?

60% of all paymentsare in cash20 out of 28 countries: 50% of all payments are in cash26 out of 28 countries: cash largest payment instrument in volume

Future of Cash 2016

A mixed payment Europe

Cash payments <50%

Cash payments 50% - 60%

Cash payments 70-80%

Cash payments 80-90%

Cash payments >90%

Future of Cash 2016

The drivers of change

Economy & Geography

Competition

History and culture

Regulation and

government

Existing infrastructure

Broadband and mobile penetra-

tion

Future of Cash 2016

Cash trends • Shrinking NCB footprint /

physical involvement - delegation to commercial banks

• Consolidation of retail bankinginfrastructure

Despite the multiple national factors… • Investment in self-service

cash transactions

• Increasing Interest in limiting use of high denomination banknotes &/or high value cash transactions

Future of Cash 2016

Will cash disappear?

Future of Cash 2016

A social role for cash“The banks have been too quick to reduce cash handling. ………….….If the banks continue to set the pace, there is a high risk that the possibility of using cash will disappear before alternative means of payment have become widespread and generally accepted. To restrain this development, the Riksdag (the Swedish parliament) should introduce a clear obligation for the banks to provide basic functions that meet customers’ needs.”

Future of Cash 2016

The world cannot do without cash...But we do need to talk about it

Future of Cash 2016

The cash cycle is too inefficientThe cash cycle needs modernising, simplifying and streamlining

Fragmented

Bottlenecks

Movement

Late realisation

Future of Cash 2016

A manifesto for cash Shorten the cash cycle?Realise earlier value?Reduce the cost of cash? Create a better multipayment interface?

How can we…

Future of Cash 2016

A G4S contribution: Modernising cash through technology

Thank you