Standard Chartered Bank #ticker:SCBK is targeting leading retail chains and other companies with high daily cash turnover with new electronic cash deposit machines as part of a strategy to grow its dwindling non-interest income.
The lender has integrated its system with that of G4S to enable clients deposit cash into their accounts at their premises via the depositor machines, reducing the cost of frequent Cash-In-Transit (CIT) services.
The clients are given Unique Electronic Cards which are configured to specific users and linked to G4S’ system, enabling near real time depositing of cash into a company’s bank account.
The system can only allow up to Sh1 million cash transactions as per Central Bank of Kenya prudential guidelines.
Firms can buy or lease the self-help electronic cash systems, the bank said, but added that the cost of either was dependent on clients needs.
Managing director Lamin Manjang said 20 depositor machines have been installed at various client locations countrywide since the project was piloted six months ago.
“This system enables clients to make cash deposits conveniently thereby reducing the risk of cash losses. The Electronic Cash Deposit Machines can accept deposits in Kenya shillings and US dollars in real time thus saving clients the inconvenience of visiting the banking hall to deposit cash,” Mr Manjang said.
The electronic cash management machines is part of the lender’s $5 million (Sh518 million) digital banking share from the global $1.5 billion (Sh155 billion) budget.
The system is expected to cut CIT costs by a half on average depending on the client’s needs.
“We used to bank daily but currently they pick the cash once a week. The cash is available immediately it is banked because previously we could bank the following day. We can bank on holidays and weekend. We are able to redeploy the staff in cash office and actually we have been able to close one of the cash offices,” said financial services manager at Nation Media Group #ticker:NMG Dorine Ogola.
StanChart’s strategy, Mr Manjang said, aims to develop digital banking solutions not only to transform client experience but also to provide them with the highest levels of security.
Under the investment package, the financier has already introduced in Kenya a mobile banking app, iPad-based digital sales and service tool, a new online banking platform and fingerprint log-in technology.
Mr Manjang said the bank has transferred nearly 50 per cent of its transactions to non-bank channels.
Head of transaction banking Kennedy Mubita said the bank was piloting another self-help system which will enable clients to process cheques at their premises.