Understanding Teller Cash Recycler Costs and Investment
Cash management is a significant operating expense for banks and credit unions. With ever-increasing pressure to control branch operating costs, financial institutions often turn to cash automation technology.
Machines like Teller Cash Recyclers (TCRs) enhance teller performance for customer-facing and back-office cash processes, directly improving branch efficiency. But understanding the true cost of TCRs and calculating a clear return on investment (ROI) for cash automation isn’t always straightforward.
Banks and credit unions often base their evaluation on hardware price alone rather than the total cost of ownership, a far more accurate assessment. Total Cost of Ownership (TCO) is a financial estimate that takes into account direct and indirect costs over the lifetime of a product. TCO goes beyond the initial purchase price to include the costs associated with installing, using and maintaining the product.
Understanding TCO helps organizations make more informed decisions by evaluating the long-term financial impact of a purchase rather than just the initial acquisition cost.
Below is an outline of all key pricing factors to consider when evaluating a teller cash recycler investment.
Initial Purchase Cost (i.e. Hardware Cost)
This is the upfront price of buying the machine. Determining the right TCR requires a thorough branch analysis including transaction volumes, cash handling needs, staffing levels and security requirements. This ensures you select the correct features and configuration for the needs and cash automation goals of each branch.
Integration Costs
Integration is the “secret sauce” of teller cash recycler adoption. The method used to integrate the hardware with your teller application—whether standalone, soft interface, middleware, or direct integration—has a significant impact on productivity gains, teller acceptance, and overall ROI. Each integration approach has its pros and cons, making it a crucial consideration when evaluating the total cost of your cash recycler.
Installation and Training Costs
The costs to deliver and set up the TCR in the branch, including hardware installation, software configuration, and any required site modifications are installation costs that should be factored into the price of the solution.
Training costs should be included in solution pricing. Saving money on training can lower upfront costs up front but may cost more in the long term. Successful TCR implementation depends heavily on comprehensive user training. Ensure that your chosen vendor is an expert in teller cash recyclers, capable of training staff for optimal operating conditions and unusual ones. The importance of proper training in maximizing your investment cannot be overstated.
Downtime Costs
There are potential losses you may incur when the TCR is out of operation. These downtime costs are often overlooked when evaluating cash recyclers. Whether the unit is out of service due to a jam or other device failure or for routine maintenance, repairs, etc., you need to consider the impact to your branch workflow.
When researching TCR models, investigate product reliability (device uptime rates), help desk availability and problem resolution rates, and even whether tellers can resolve problems without an onsite service intervention. All of these factors translate to longer device uptime and are indicators of reputable manufacturers and service providers.
Onsite Service and Maintenance Costs
Another pricing factor is the cost associated with maintaining the device in good working condition, including repairs and preventive maintenance. To maximize ROI, it’s essential to partner with a capable service provider. Ongoing preventative maintenance and efficient servicing are critical for optimal device performance. Choose an organization with substantial technical coverage and a proactive maintenance plan based on device throughput. Cutting back on service investment is a common mistake that can lead to subpar results. When evaluating vendors, research response times, PM procedures, and remote monitoring capabilities to protect your investment.
Calculating the total cost of ownership for a teller cash recycler is a key component of the decision-making process. Understanding your branch’s unique requirements and exploring the various brands in the market—such as the Glory TCR or RBG-100—will lead to an informed decision. Many providers offer an in-branch ROI analysis to determine whether a cash recycler is the right solution for your specific needs. It’s advisable to take this step and consult with a cash automation expert to gain an in-depth understanding of your requirements.
When purchasing a cash recycler, like any significant investment, you generally get what you pay for. Ensure you’re making a well-informed choice that aligns with your operational goals.