The Future of Cash Post COVID-19

What do digital banking and a cashless society mean to you and your business?

We will review how the COVID-19 pandemic has affected the digital age of banking and why cash management is more critical than ever before in our current environment. The past year has fast-forwarded our thinking about the supply and demand of cash, from fears over COVID contaminated money to the coin shortage. It has proven that our society can pivot on a dime when needed.

The Past

When I think of the digital age of banking, I think of the last 10-15 years, but in reality, digital banking – or at least the idea of it – has been a push as early as the 1960s when ATMs and ATM cards were introduced. Many people I know do not even carry cash in their wallets anymore. With innovations such as Zelle and Venmo, people are digitally splitting checks, repaying each other, and purchasing goods and services, all with a push of a button. Traditionally cash services, such as valets and public parking, are quickly adapting to a cashless world. Goods are purchased through online platforms such as Facebook Marketplace, Offer Up, and Craigslist.

COVID-19 Changes Everything 

Although we have been consistently heading towards a cashless society, I believe COVID-19 has sped up this thought process due to concerns of contaminated bills and coins that could spread the virus. While this pandemic forced many to consider not accepting cash, it’s just not that easy.  In my opinion, we will eventually get there. What happens when power outages occur? What if the network is down and services cannot connect for transactions to process in real-time? Prepared and consistent cash management is the answer. By trending cash demand over time, businesses can overcome hiccups in the norm of a cashless society to allow transactions to continue to reduce risk. Banks and companies that routinely monitor the amount of cash on hand to meet demand have the advantage to deal with cyber threats or natural disasters where electronic purchases become impossible. The banking industry is uniquely positioned to innovate and evolve their technology to keep up with a cashless society’s growing demand for options.  As cash diminishes, having a reliable cash management tool to analyze and project cash-on-hand needs for banking and businesses is also vital. With physical cash flowing at an all-time low velocity, it is more important than ever to manage your cash supply chain efficiently. Adopting automation technologies supports growth and reduces costs for cash logistics.

Morphis Can Help 

With our society in the full throws of the digital age, and now COVID-19, maximizing business efficiency, innovating with technology, and having the right amount of cash on hand at critical times is key to maintaining a successful business in this industry. If you are looking to invest in your business’s future, then Morphis, a leading global supplier of currency supply chain solutions, is the right fit for you. Reach out today sales@morphisinc.com today to learn more about how Morphis can help.