What are Teller Cash Dispensers (TCD)?
Teller cash dispensers (TCDs) are pieces of equipment that get overlooked at many banks and credit unions. Often ignored in favor of the teller cash recyclers (more on that later) or interactive teller machines, the TCD has a unique role that can make it continue to be relevant for the right financial institution.
For those unfamiliar, a TCD is a piece of banking equipment that tellers use to quickly get a set amount of cash for a customer/member. They are effectively a freestanding safe that counts and dispenses money without needing to be opened.
Did COVID-19 kill cash?
In an article on COVID-19’s impact on cash, ATM Marketplace notes that Federal Reserve surveys have found an increase in people holding cash. Compared to late 2019, more individuals are keeping greater amounts of cash on hand, despite the (unproven) fear of virus transmission.
Lobby productivity for TCDs
Teller Cash Dispensers are all about teller efficiency. They provide many benefits to financial institutions that need to service several cash requests throughout the day.
Here are some ways a TCD can help improve speed and efficiency:
- Cash output is extremely fast: TCDs dispense the exact amount of cash the teller needs in seconds. TCDs are 99.99% accurate when dispensing the cash, eliminating human error and the need for tellers to count the cash/change two or three times.
- Large capacity of different denominations: A TCD can have large reserves of every type of dollar and coin denomination This reduces special trips to get specific denominations for a teller’s drawer.
- Removal of worn bills: Depending on the model, the dispenser may be able to separate and remove any worn out or torn bills that happen to be put into the TCD.
- Reduces vault buy time: Most TCDs have large cash reserves, which can reduce the need for the teller to get more cash for their drawer (which involves things like dual controls and recording the deposit). On average, a TCD brings deposit time down from 20 minutes to just two minutes, greatly reducing wait time and keeping teller lines moving.
From a workspace standpoint, TCDs have some features that make them easy to use in any financial institution.
TCDs are fairly compact devices, allowing banks and credit unions more options for how they set up their lobbies. They are thin enough to fit between adjacent teller stations, and some units have dual-side dispensing that lets two tellers use the same machine.
Alternatively, the security and safety of cash storage offered by TCDs allow financial institutions to arrange their tellers in a more open layout of individual tables for customers or members to do their banking. In these arrangements, the amount (and various denominations) of cash in TCDs also greatly reduces the amount of cash in a teller’s drawer and eliminates the transportation of cash across the open floor during business hours.
Benefits of TCDs: Focusing on people
Perhaps the best value from TCDs is improved customer service. Fast, automatic dispensing allows tellers to have better interactions with the customers/members. It’s easier for a teller to maintain eye contact, make small talk, and promote additional services when he or she does not need to focus on pulling cash and counting it. It may seem minor, but customers and members are always grateful to have a banking experience that is fast and makes them feel they had the teller’s complete attention.
TCDs vs. TCRs
A major challenge to the widespread adoption of TCDs is teller cash recyclers (TCRs). TCRs are very similar to TCDs, except that the machine is capable of both giving cash and taking cash deposits. While this makes TCRs more flexible than TCDs, it does not always make them better.
A TCR is going to be valuable for a teller location that has a lot of general cash transactions. Since the machine can take deposits, it reduces the need for tellers to make trips to move money to the vault if several deposits are made in a row. Additionally, since the machine’s cash is resupplied by deposits, it will likely need to be loaded less frequently than a TCD.
However, TCDs do have one major advantage over TCRs. A TCD can typically hold much more cash than a TCR (which relies on recycling deposits). This means that TCDs excel in locations that consistently need to dispense much more cash than they receive. For instance, while a TCR might be great for a lobby teller, a TCD can be much better for drive-up lanes where cash dispensing is more common than cash deposits.
You can also find out more about the difference between TCDs and TCRs in this video published by ARCA.
Future of TCD with Equips
If you’re curious about TCDs, TCRs or any other banking equipment, Equips ready to help. We can recommend the best equipment for your business’s needs.
Already using teller cash dispensers? Equips can help you maintain them through our expert equipment management system. We can work with your current service provider, or you can find a new partner from our network of top providers. Contact us today!