GS1 Standards for Cash Flow Management for Banking Organizations

GS1 Standards for Cash Flow Management for Banking Organizations


Imagine a completely transparent system of cash flow turnover, when the movement of each bill can be traced. Imagine a system without the use of waste paper, where everything is documented in the electronic codes with a high degree of reliability. Cash is the most limited resource at the moment, so the problem of cash flow are playing very important for the state and business.

Despite all the achievements of modern times in the field of cash payments are the main means of payment today, and in the near future this trend will continue. About 80% Payment is made in cash[1], and that a large amount of money. A volume control is extremely difficult, money constantly move as intended, and in the shadow. The issue of traceability of funds in the context of globalization and prolonged economic crisis is very acute. Safety and effectiveness in cash logistics - is the foundation of each ecosystem: process of banknote printing in central banks to cashing ATMs. And on how healthy ecosystem depends on the stability of the entire economy.

In Kazakhstan, control cash movements are determined by the National Bank, namely PP from NBK 24 August 2012 , the number 254 "On approval of Rules of accounting, store, transportation and collection of banknotes, coins and valuables ". According to the rules, in brief, during transportation to the bags are put fractional numbers, seals, drawn up logging for the account of safe cards, bags, seals and powers of attorney for collection of cash proceeds; recording a waybill, in the Journal of the task, written out by hand in three copies of Transmittal sheet; issued a certificate issued on the bags as collectors, transmitted secret address card to fill, porozhnyuyu bag, his signature on a copy of transmittal sheet ... etc. Even in this short paragraph can be seen, how many papers and statements created during the management process, as well as the human factor plays an important role. This obviously begs the process automation and the elimination of any mistakes.

But as efficiently as possible to each participant of the process to monitor and manage the cash supply chain? To answer this question, let's consider, how this process takes place in the German banks.

With the technology CashEDI[2] Deutsche Bundesbank (German Bundesbank) optimizes the management of cash movements, Other European banks use similar solutions. Electronic data exchange based on global GS1 standards sets the common language of business for all participants. This independent standards, ensuring efficient and transparent business processes throughout the industry. This system can take advantage of such large organizations as the National Bank, mints, second level banks, CIT companies (organization of transportation of money), businesses. International GS1 organization launched the project "GS1 standards for Sash Handling"[3] for all euro area countries. And at the moment the best tool for the management in Europe has not yet invented.

As these standards can be used under practical conditions? To do this, follow the example of the German experience of a typical delivery of cash from the cash management center to the branch of the local savings bank. Money order will be sent via electronic data interchange. For this purpose, each bank branch will be identified by its code GLN[4], and order (bills pack) - across GTIN[5], in each dispatch consignment (box, Collector bag) branch receives a bar code or RFID with the code chip SSCC[6].

gtinGTIN состоит из 13 figures, among them the GS1 Company Prefix (1-7), assigned to the company, serial reference number, determined by (8-12), and a check digit (13).

GLN is similar in structure to the GTIN and is used to identify the professional cash handlers, included in the cash flow cycle. For tracking purposes GLN may be associated with ATMs, cash items or cash processing systems.

SSCCSSCC consists of 18 figures, that uniquely identifies the logistic unit and provides an efficient way to streamline processes automated shipment, delivery.

RFID technology (Radio Frequency IDentification, radiochastotnaya identification) reads, records and transmits information by radio, stored on TN. RFID-tag. High speed operation and a multi-purpose use of this technology makes it indispensable in logistics especially for transporting large quantities of products.

Delivery money order made by CIT, a bank branch will be informed of this by e-mailing notifications (EDA). CIT Manager delivers each parcel to the appropriate branch of the Savings Bank.

scan ssccThe figure on the left shows the scanning process SSCC barcode package with cash. Thereafter, the device next to the manual printer, which prints the full information about the contents of the package, and the receiving party shall sign on a check. When transferring cash condition of acceptance is based on SSCC code in the EDI system, all participants. Now the constant traceability and detection capabilities throughout the entire cycle of money circulation.

Simple Scheme total money turnover process is shown below:[7]

oborot deneg

It is worth noting, that the number of paper documents has significantly decreased, counting the number of cash via RFID can be done in seconds. for example, truck with money can pass through the turnstile and sensors automatically calculate the amount of money in real time! As seen in the illustration, we also have the ability to completely track movement of funds, control this movement and correctly distribute the load. transparency of the system makes it difficult for the existence of corruption schemes. The simplicity of this system allows you to painlessly integrate into the already functioning system of organization, freeing up new resources. System safety is confirmed by many years of successful operation of millions of companies around the world.

Cash is still the main means of payment in the near future. To maintain this status requires transparent and secure solutions. local, global integrated, and effective. GS1 standards enable simple and trace elements detected in cash circulation. Ensure the efficiency and safety of each participant. The implementation of these standards creates a basis for a new vision of a sustainable monetary logistics. Summing up we present the main advantages of using global GS1 standards in various economic sectors:

  • increase the reliability of the direct tracking of cash flow;
  • optimization and standardization of the flow of messages between banks;
  • orders the elimination of double;
  • time savings in preparation, sending and receiving;
  • improving traceability and thereby facilitate consumer safety;
  • increase reliability and optimization of inventories;
  • service quality improvement;
  • enabling automatic data recording, which guarantees high quality information.

Using GS1 standards allows us to speak the same language with the global business community. Kazakhstan organizations may adopt the experience of the European colleagues and implement this standard in their organizations. Kazakhstan branch of GS1 Global, GS1 Kazakhstan, It has access to all the necessary materials and resources for the full implementation of the system, learning, counseling and development.

[1] The use of GS1 standards in the Cash industry, GS1 in Europe Channel

[2] Electronic data interchange - the electronic exchange of data based on GS1 standards

[3] GS1 standard for cash management

[4] Global Location Number

[5] Global Trade Item Number

[6] Serial Shipping Container Code

[7] A source: GS1 US Cash Visibility

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