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The Case for RFID-Enabled Traceability in Cash Movements

Author

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  • Lance Decker

    (Department of Multidisciplinary Engineering, College of Engineering, Texas A&M University, College Station, TX 77843, USA)

  • Ben Zoghi

    (Department of Multidisciplinary Engineering, College of Engineering, Texas A&M University, College Station, TX 77843, USA)

Abstract

Cash movements between banks and customers are often conducted through armored courier services. These armored couriers are hesitant to adopt new technologies because the business’s nature requires well-documented custody transfers of cash bags. Often, these transfers are still based on paper receipts. The researchers believe that using radio frequency identification (RFID) and an application programming interface (API) between all parties in the cash management ecosystem reduces cost, improves efficiency, and increases capacity. To alleviate the hesitancy of armored couriers, a simulation model is made that operates much like an existing 45-vehicle branch. Once the model was validated, changes were made to the model to adopt the API interfaces and RFID systems required. In addition, an RFID-based sorting robot was implemented. A comparison focused on the workforce utilization of armored vehicle crews and branch tellers. As expected, the resulting model significantly reduces staffing requirements, improves efficiency, and increases capacity. The operational behaviors of tellers were reduced by 79%, and truck route durations were reduced by 43%. The expectation is that this research will help armored couriers see the advantages of adopting such a system and spur additional investigation of the solution. Finally, the cost of the system and operational savings were put into a return on investment/payback period calculation, revealing an annual savings of approximately USD 2.2 million after a one-year payback period.

Suggested Citation

  • Lance Decker & Ben Zoghi, 2023. "The Case for RFID-Enabled Traceability in Cash Movements," FinTech, MDPI, vol. 2(2), pages 1-30, June.
    • Handle: RePEc:gam:jfinte:v:2:y:2023:i:2:p:20-373:d:1173130
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    References listed on IDEAS

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