'Cash is and remains legal tender'

To control the cost of cash traffic, ABN AMRO, ING and Rabobank established Geldservice Nederland (GSN) in 2011. GSN handles cash processing, coordinates the transport of value to and from ATMs, and maintains the ATMs. As the use of cash continued to decline, it became difficult for banks to maintain the affordability of services. In 2017, this led to the decision to further expand cooperation in GSN. ABN AMRO, ING and Rabobank brought their ATMs for withdrawing and depositing money as well as their seal bag machines for depositing packaged bills into one company. On January 1, 2019, GSN changed its name to Geldmaat.

Victor de Wolff became finance director at Geldservice Nederland in 2011, since 2019 he is CFO of Geldmaat. De Wolff, who is responsible for finance, procurement and risk management, explains what Geldmaat does. "We took over the total package of cash services from ABN AMRO, ING and Rabobank. We own the ATMs, we make sure they are placed and that they are filled and operational. Some work we do with our own people, other tasks we have outsourced. But we are in charge. It is our mission to keep cash in the Netherlands accessible, available, affordable and safe."

What am I to imagine?

"Reachable means that every Dutch person can withdraw cash from an ATM of Geldmaat within a radius of five kilometers from their home address. And that there are sufficient opportunities throughout the country to deposit bills and coins and to withdraw coins. Available means that the money size ATM must also do it. There is money in it and it is technically sound. Because the use of contact money is declining and the chain has fixed costs, the cost per transaction is getting higher. The banks set the rates, but by innovating the machines and further developing our services, we ensure that cash remains affordable. And, of course, it is important that ATMs are safe. Consumers must be able to withdraw or deposit money in safety, and we do everything we can to minimize the chance of, for example, successful explosive attacks."

Your activities are not without risks. How do you handle them?

"First of all, we have taken measures in many areas to reduce risks. Some risks we bear ourselves, some we have transferred to an insurer. Let me mention our cash centers as an example. The banknotes that business customers deposit in a seal bag machine are transported to these cash centers. There a check takes place for the correctness of the amount and for the authenticity of the bills. Furthermore, the bills are filtered out that according to the requirements of the Dutch Central Bank and the European Central Bank are not allowed back into circulation, for example because they are damaged. These cash centers can be a target for criminals, although they are definitely not Dagobert Duck money warehouses as is sometimes thought. At the end of the day, the vaults are simply empty. But of course we have taken all sorts of measures to reduce the chances of a criminal attack and to provide a safe working environment for our staff. AND we have insured the risk."

What role does Schouten Zekerheid play in this?

"In 2011 there was a series of robberies on money transports, exactly at the time when part of the work and a number of employees were transferred from the three banks to Geldservice Nederland. We invested heavily in the security of the various locations and transferred the risk to an insurer. We are a specific company with a special product, Schouten Zekerheid can empathize with our situation and the employees try to find the optimal insurance solution for us. In recent years, several other parties, also larger than Schouten Zekerheid, have indicated that they want to be our broker. But we are satisfied with the cooperation. For example, in the case of damage, but also in procurement processes, the re-contracting of certain insurances and in the preparation of inspection rounds by insurers, they prove their value."

The use of cash is declining. What does this mean for the future of Money Size?

"The Dutch Bank has determined that cash is and remains legal tender. Stores and businesses are therefore not only allowed to accept electronic payments. That the use of cash is decreasing is a fact, but I am convinced that in a few years there will still be cash in circulation. For a healthy future of Geldmaat, we are open to other banks, who can also purchase services from us. And we are looking at whether we can add attractive forms of service to our current range for our customers, i.e. the banks."

Who pays with cash these days?

"In the Netherlands, 80% of all payments are made digitally, 20% are made in cash. There are groups of vulnerable people for whom paying with cash is preferred, because they feel it gives them a better overview of their expenses. There are also people with physical or mental disabilities for whom cash is easier to use. A growing group of people want to pay in cash only for privacy reasons. Even tourists, especially those from countries where electronic payments have not yet been widely adopted, often want to pay in cash. And in case of an electronic malfunction, we immediately fall back on cash. If there is a pin failure in a certain (shopping) area, we immediately see long lines at the ATMs."

Last question: do you have your own cash in your pocket?

"Most of the time I do. For the smaller expenses, to collectors for example, but also if for some reason I can't pay with my bank card. After all, that doesn't work everywhere abroad. Besides that, I'm also just proud of the special product we provide."

Money size in figures