Market Trends of Currency Counting Machine Industry
Financial Inclusion Trend Worldwide by Expansion of Bank Branches Drives the Market Growth
- The need for currency counting machines in the cash management department of the Banks due to their application in minimizing the manual task and error associated with currency counting is fueling the adoption of the market in the financial sectors, which is driven by the expansion of the bank branches to support the financial inclusions.
- For instance, in June 2023, Bank of America announced the expansion of its financial center network into nine new markets over the next four years, bringing banking, investing, retirement, lending, and small business services and solutions to more clients and communities. In addition to optimizing its retail banking presence, the company would begin a multiyear expansion across nine markets and four new states, including Nebraska, Wisconsin, Alabama, and Louisiana, which would drive the market's requirement for currency counting machines.
- The growth of financial services in developing countries worldwide is fueling the market growth of currency-counting machines because cash-based transactions are prevalent in developing countries. For instance, the Payments Association of South Africa has stated that the citizens of South Africa have been increasingly dependent on cash. This trend has been more prevalent among social grant recipients, and 95% of beneficiary funds are withdrawn within seven days of being deposited, shows the country's dependency on cash, which is driving the adoption of the currency counting machine across the banking sector of the country, fueling the overall market growth.
- Market vendors like VMS Essentials have developed currency-counting machines for professional counters with precise sensors and a reliable electric motor for accurate counting, fueling the market with the increasing demand for currency-counting devices in Banks. In addition, Vendors are developing a UV and Magnetic counterfeit system, which can detect any fraudulent banknotes while counting all denominations up to a speed of 1000 notes per minute, making it suitable for banks' cash handling units.
- Additionally, in March 2023, Advans Lafayette Microfinance Bank announced its expansion plan to open a branch in Lagos, Nigeria. The new branch would be the 30th branch extended by the bank to provide financial services in the local communities, attract new clients, and boost economic growth in the region, which would create an opportunity for the cash-counting machine manufacturers to support the market growth.
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The Asia-Pacific Region is Registering the Highest Market Growth
- The Asia-Pacific region has been registering continuous investments by various governments of countries, such as China, India, Japan, Singapore, Malaysia, Vietnam, etc., to support its financial inclusions by expanding the financial services to the unbanked and rural areas of the country, which include both deposit and withdrawal of services in those areas, creating a demand for the currency counting machines due to its applications in easing the BFSIs operations in note counting while depositing and withdrawing the currencies.
- The expansion of bank branches in the APAC countries is supporting the market growth during the forecast period. For instance, in December 2022, the State Bank of Vietnam approved Public Vietnam Bank's eligibility to operate another branch in the country, increasing the retail banking solutions and ATMs in the region. The services would increase the demand for currency counting machines for the bank's services due to their ability to automate cash management.
- The Growth of NBFCs (Non-Banking Financial Companies) and MFIs (Micro-Finance Institutions) in developing countries, such as India, would fuel the need for currency-counting machines to support their cash deposit and withdrawal services. For instance, in December 2022, the Investment Information and Credit Rating Agency of India reported that the country's retail-focused NBFCs are expected to grow over 12% in FY 2023-24, which would accelerate the need for currency-counting machines in the NBFCs because these institutions would need cash-counting devices to give loan to the retail sector requires cash for their business.
- The capability of fake note detection in the currency counting machines is fueling the market growth due to the increasing number of counterfeit currencies reported by police and central banks of various countries of the APAC region. For instance, in December 2022, the Agra Railway Police of India seized fake currency notes worth INR 1.5 lakh at the Mathura Junction railway station, and the arrested counterfeit note revealed that a Chinese company was sending them the security paper to print the fake currency.
- Market vendors of the APAC region, such as TVS Electronic of India, have launched TVS CC-232 Classic, designed with a big front display and buttons with a display range of 1-999, which would automatically detect fake notes with ultraviolet and magnetic radiations and also counts old and new notes with a high level of precision and speed to support the market growth.
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