Loomis offers cash handling solutions in 15 European countries and in the United States, Argentina, Hong Kong, Singapore, Shanghai and Dubai.
Growing volume of cash
The demand for cash handling solutions is affected by the amount of cash in circulation in society. Cash volumes increase as an effect of economic growth. Cash is the most common payment method and more than 50 per cent of all transactions are paid cash in USA and in Europe. In other parts of the world the cash portion of all payments is even greater.
ATM withdrawals are also increasing. This trend presents a growth possibility for the cash handling industry. In more or less all of the markets where Loomis operates, ATMs account for more than 50 percent of the cash distribution to customers. There are approximately 390,000 ATMs in Western Europe and approximately 480,000 in the US.
Banks and retailers increase outsourcing
Parallel to the growing amount of cash in society, there is a clear trend towards increasing outsourcing of cash management. The outsourcing process has reached different stages in the markets where Loomis operates. A natural first step in the maturing process is that banks and retailers buy cash in transit services. The next step is the outsourcing of the entire cash flow procedure, which includes counting, verification and quality control of coins and banknotes as well as the management of ATMs and cash deposit machines.
In mature markets, Loomis offers analysis of cash flow and forecasts of the amount of cash necessary for different ATMs, depending on their location and day of the week, as well as an estimation of how much cash change retailers need. Customers can track their cash flow through an online reporting system. We handle maintenance and service of ATMs. Retailers can use the end-to-end system whereby Loomis is responsible for the deposited cash, reducing the cost of cash management, and mitigating the risks for employees.
Increasing outsourcing of cash management leads to a faster circulation of cash in society which supports the Loomis business model.
Competition and consolidation
Loomis is the only international specialist in cash and value handling. The market is highly competitive and Loomis' main competitors are three large, international companies with cash handling forming part of their business. There are also a few medium-sized and several small, local firms.
The cash handling industry is currently going through a consolidation phase where bigger companies tend to acquire smaller companies. The trend is likely to continue and Loomis expects to make acquisitions both to secure a strong position in existing markets and to gain presence in new markets.