Cash Handling

The bank is one of the cash handling market leaders in Moscow and Moscow Region, as well as in Russia as a whole. Since 2015, its Group includes Inkakhran, one of the largest cash handling companies in Russia.

The Russian economy remains cash-intensive, which supports the high demand for cash handling services, especially among retailers. Historically, retail companies and credit institutions have been an important business segment for the bank and generate a significant part of cash handling fees.

On top of the direct fee and commission income, the cash handling services allow the bank to obtain additional benefits by reducing the cost of operating its own network of self-service devices (ATMs and payment terminals) and by installing them in places with high customer traffic, which increases the return on installation and maintenance investments.

The bank regularly develops and introduces new cash handling products. One example is the collection of revenues through self-service devices (ATMs and payment terminals) with online crediting of funds to the customer’s account. The provision of cash handling services sets the bank apart from the competition and represents a significant competitive advantage.

Main results of cash handling business as at end-2019:

  • 2,700 customers, including 120 credit institutions;
  • more than 41,700 serviced points;
  • more than 400 cash handling routes.

The bank actively attracted new large customers and conducted regular logistics optimisation exercises in 2019.

The bank has two in-house cash handling centres (where physical cash is accepted, counted and credited to customers accounts), of which one is located in the south of Moscow, one in the north, and 25 centres elsewhere in Russia, The bank transported and counted more than RUB 3,700 bln and RUB 2,400 bln, respectively, in 2019. As at end-2018, the bank’s fleet consisted of more than 800 armoured cash collection vehicles of varying capacity.

The bank earned RUB 3.6 bln in fee and commission income on cash handling servicesIncludes the fee and commission income from cash handling and other cash operations in 2019 and intends to continue developing this strategically important franchise, which creates synergy with corporate business.

The bank has one of the largest cash handling centres in Moscow. To ensure technological leadership in this area, the bank’s IT specialists have developed and continually improve specialised automation software.Its capabilities allow the bank to reduce consistently the cost of cash handling services provided to its and other credit institutions’ customers, to deliver cash to/from terminals and ATMs and other credit institutions’ branches.

In 2019, the bank successfully united its and INKAKHRAN’s cash collection businesses, relocating them to a new, state-of-the-art cash handling centre in Moscow.

The cash collection business is going to be developed further in 2020, with the market positions to be consolidated not only in Moscow, but also in all other parts of Russia.