November 2023

EDITORIAL: Access to & availablity of cash – the challenge continues

As the use of cashless technology continues to grow, the demand for cash and therefore banking services decline. This provides the ideal opportunity for banks and financial institutions to close branches and reduce the number of ATMs, particularly in less populated localities and regional towns, making it increasingly difficult for people in those areas who choose to manage their finances with cash to be able to deposit and withdraw funds.

Banks, which consider branches as a cost and not a community service, continue to announce branch closures as well as shutting down ATMs with little regard for those who rely on cash in their daily lives, including those in society who are more vulnerable and less technologically capable.

Why is it that some Governments seem slow, or dare I say unwilling, to intervene in a market where there are continuing closures of facilities that dispense cash or provide the opportunity to deposit cash? To highlight the challenge, the Australian Prudential Regulation Authority (APRA) recently released figures that showed the number of ATMs fell from 13,814 in 2017 to 6412 in June 2022.

What is even more disturbing is that, while cash usage has been falling, particularly in developed countries, it is being replaced by card payments that attract interest or a fee. Consumers are paying to use their money either directly or indirectly while cash remains free.

Governments – as they have done in the UK – must consider the impact that these branch closures and related loss of financial services are having on these people and the communities in which they live.

In May 2022, the UK Government announced it would legislate to provide the Bank of England with the “powers necessary to ensure the UK’s wholesale cash infrastructure – which includes the network of cash centres integral to the sorting, storing and distribution of notes and coins – remains effective, resilient and sustainable and continues to support cash across the UK”.

This is a clear signal to banks and other financial institutions in the UK that, while decisions about access to cash may be voluntary, there is an expectation from the UK Government that cash will be readily accessible to everyone.

While this does not guarantee access for all, it is a legislative model that policymakers in other countries should consider to ensure that those who rely on cash for legitimate reasons will continue to have access to cash – both notes and coins.

SUSTAINABILITY CASE STUDIES: Winner of the MDC 2023 Award – Royal Dutch Mint

Royal Dutch Mint describes its environmental intentions and direction in its ISO 14001 Environmental Policy. The Mint strives to meet the aspirations as set out in the Paris Agreement. Permanent improvement of environmental performance is key within the organization and is part of all departmental strategies and has been implemented in existing workflows.

FIRST ENERGY NEUTRAL MINT

In December of 2020, the Royal Dutch Mint put into operation a solar power plant on its roof to provide enough energy to be self-sufficient. Coins produced by Royal Dutch Mint are now 100% energy neutral. Also, its new building does not consume fossil fuels and is heated with electricity only. The heat exhausted by the presses can be reused and cold night air is used to cool the building in the summer.

Organising for a Low Carbon Footprint the Royal Dutch Mint has implemented the following:

• Solar power generation: The Dutch Vault generates electricity using its own solar energy plant on the roof matching its demand
• Lower electricity demand:
  • LED lighting
  • Timers on power plugs
  • Advanced Heating, Ventilation and Air Conditioning system
• Electric forklift trucks
• Commuting: staff are encouraged to use public transport or to cycle to work. As a result, only 72% of staff still drive to work
• Less water: capturing rainwater and using it to flush lavatories and water the gardens
• Less materials: all office printers are set up to print double sided and printing is only in grey tints. There are also fewer printers than in the old site
• Materials: cardboard is now sourced from ‘Forest Stewardship Council’ suppliers for packaging as much as possible and if plastic packaging is required, RDM looks to work with recyclable plastics
• Chemicals: RDM has been able to reduce the use of chemicals and production time in its machines and processes by optimising the process parameters and monitoring the time and consumption
• Productivity: automation has allowed RDM to produce about 50 million circulation coins for each member of staff (full time equivalent, or FTE), office and production
• Water treatment: RDM uses a local specialised recycling company to treat process water with high levels of metal particles. The wastewater is now of such high quality that the environmental impact is no longer significant
• Waste recycling: All waste on site is now sorted, with material recycled where possible.