Cash-in-Transit providers can save OpEX with Aurigraph DLTs

Current challenges in CiT Services

Let us take a day in the life of CiT providers involved in moving Cash from Banks to their Branches, ATMs and customers. Each Cash movement through the Cash supply chain goes through 6–8 rounds of counting. The average loss arising in counting process is 0.15–0.2%. Statistics in different regions show an increased rate of Cash related crime, especially with those involving internal theft. While the industry has been briskly adopting tamper proof technologies, loopholes remain. Further, CiT providers are paying an estimated 1.86% of the declared maximum value per event or month.

Current State — Cash in Transit

Cash Leakages and Losses

Cash Leakages and Losses occur while transporting cash across the value chain. A significant source of leakages also occurs in the counting process in each leg of the transaction. Reporting soiled and fake currency is another aspect that introduces exceptions. The time and effort taken to count, verify and validate the notes, leakages and losses involves significant risk. In some geographies, the risk of heists and thefts further compound the problems. This can often lead consumer dissatisfaction for Banks and Retailers.

Insurance

CiT providers cover their risks with Insurance, which adds to operational costs. Often, the cover is for a maximum amount in transit or inventory which may vary based on business cycles. In case of Cash-in-transit in vans, again, the cover is taken for full capacity of the van. The real-time inventory varies from point to point as well as with seasonal demands.

Reconciliation

CiT companies are known to take 7- 14 days to count, verify and validate currency notes in their inventory and transit before reporting to their customer Banks and Retail chains. Banks may take a further 14 days to reconcile accounts through the supply chain from their Branches, customers and ATMS before settlement with their CiT providers, leaving a considerable amount of cash-in-float, which can lower liquidity and, hence, profits. Certain Central Banks have stringent measures for having large unreconciled cash-in-float for extended periods, as it has greater economic impact, leading to compliance and regulatory risks.

Distributed Ledger Technology

Distributed Ledger Technology, as the name suggests, is a peer-to-peer network of nodes with Peer-To-Peer (P2P) transactions. As P2P transactions occur between any two nodes, they need to be validated by neutral 3rd parties to ensure immutability, transparency, and non-repudiation. To validate P2P transactions, Blockchain, considered as first generation DLT protocol, uses mining-based transaction, causing to which is slow and very resource intensive. Blockchain throughputs can be under two hundred transactions per second with latencies ranging from minutes to hours in closed, permissioned networks.

Aurigraph Distributed Ledger Technology (DLT)

Aurigraph DLT is a mining-less DLT protocol and platform, based on Triple Entry Accounting principles can deliver Real-time Reconciliation and Track-and-Trace across value chains. Aurigraph offers super-scalability of the order of 100,000 transactions per second and sub-second latency with very secure data communication and storage across a Decentralized eco-system such as CiT. With multiple customers spread regions and their ATMs, Branches and Points-of-sale, Aurigraph DLT will reduce operational costs and losses, deliver high ROI with elevated levels of Transparency, Immutability and Non-repudiation. Further Aurigraph DLT is offered on a SaaS model, offering a low-Capex Model, reducing business risk further.

Aurigraph solves critical CiT challenges

Using Aurigraph DLT based CiT solutions, CiT providers can reduce time taken for processing and reconciliation from 30 days to under 7 days, with real-time Reconciliation and Track-and-Trace through the entire Cash supply chain, including Cash Counting Center and Vans.

Future State of Cash-in-Transit with Aurigraph DLT

Benefits

  • Reduce Leakages in transit and counting processes by 20–35%
  • Reduce Counting and Reconciliation time and effort by 30–50%
  • Reduces business risks, inventory costs and Insurance.
  • Reduce “Cash-in-float” by 15–30%, thereby improving liquidity, cash flows and profits.
  • Reduce Insurance Cover to actual inventory than maximum allowed inventory, thus saving over 60% in insurance

About Aurigraph

Aurigraph Distributed Ledger Technology is a mining-less protocol and platform that can deliver super scalability and zero latency, unlike conventional blockchain platforms. As the protocol is based on Triple Entry accounting principles, it can deliver Real-time Reconciliation and Track-and-Trace across value chains, thereby providing to be the ideal platform for Financial Fraud prevention and Reconciliation.

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Aurigraph

Aurigraph

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Realtime Enterprise DLT with Zero Latency and Cost. Realtime Reconciliation, Settlement and Audit for Enterprises using Triple-entry Accounting