"Cash volumes in South Africa have doubled since 2003, with over 60% of payments for goods and services being paid in cash. While cash is clearly the preferred payment choice, its anonymity makes for a major target of crime with figures showing that business robberies remain high year on year. The retail sector is the most heavily affected," he says.
The International ATM Association says that globally, cash represents 84% of payments and it is generally accepted that the deployment of ATMs is a reliable indicator of the demand for cash in the economy.
Phillips further expands that traditionally in a retail environment cash is collected by the cashier, put in a till and remains at major risk until it is physically transferred to a bank. Furthermore, the cash will more than likely be handled between six to eight times until the bank verifies it, which raises the potential of shortages arising along the way. During this process, it has been noted that the retail stores suffer a shortage loss of between 0.15% and 0.2% of turnover.
Cash crime, however, is no stranger to South Africans, with daily stories reported and a subsequent impact felt on the economy and business sector. Cash in transit companies have improved their defences over the past ten years. This has given rise to cash robberies growing within the retail sector, which is generally seen as a softer target for criminals. With the risk of robbery significantly high, the debate in the current SA landscape becomes "when" not "if" a robbery will occur.
Cash protection, therefore, becomes a current and relevant topic. SABS prescribes a minimum requirement for various levels of safe, from category 1 to category 5. The level of protection only determined by with what tools and how long it will take to breach the safe. Phillips accurately points out that the higher the level of resistance, the greater the deterrent against the alarming rise of armed robberies currently being experience in South Africa. Serious consideration must be given to the fact the overwhelming majority of armed robberies are effected with "inside information," hence once it becomes known that the business is a hardened target, the risk reduces substantially.
Retail risk assessors are also quick to point out that the only effective way to reduce armed robberies in the South African retail sector is to make cash effectively inaccessible. Automation of the cash management process using technology and systems that conform to tried, tested and proven cash protection and logistics principles offer a cost effective way to remove the cash risk from the retailer.
The company has played a leading role in supplying end-to-end cash handling solutions that incorporate the use of technology, SABS CAT 4 Vaults (Safes) and have a unique business model that assumes the risk for the cash from the instant it is deposited into one of its safes, which guarantees value in the bank every time.
For more information, go to www.cashconnect.co.za.
