News in Brief

Glory Ups Investment in OneBanx

Cash technology solutions specialist Glory has announced the acquisition of additional shares in the fintech OneBanx, the fully managed shared banking solutions provider. As a result, Glory now holds 91.99% of OneBanx’s outstanding shares.

Founded in 2019, OneBanx developed its shared banking solution to deliver basic banking services in areas where traditional bank branches have closed, utilising off-site premises such as supermarkets, building society branches, shopping malls and local community hubs.

The solution – a low cost, pop up kiosk format that provides face-to-face banking services on behalf of multiple banks and financial services clients – is available to both individual and business customers through personalised assisted service and advanced self-service. It is currently live with three UK financial institutions.

Glory first invested in OneBanx in 2021, becoming the lead external investor following a fundraising round with a significant minority of the enlarged capital.

Toshimitsu Yoshinari, Chief Solutions Officer at Glory Global Solutions, said; ‘we are excited about the added value we can provide to our customers as a result of this transaction combining Glory’s experience and scale in the UK market with OneBanx’s innovative shared banking platform. OneBanx can help banks bridge the gap for customers who rely on branches for cash transactions while also introducing many of them for the first time to the convenience of digital banking.’ 

Better Year than Expected for Orell Füssli

Orell Füssli has stated that the second half of 2023 is developing better than expected.

It had previously assumed a slight increase in sales and an EBIT margin slightly below the previous year. It now expects an increase in sales and an EBIT margin at or slightly above the previous year’s level. All business areas will make a positive contribution to earnings, with the result being due in particular to lower than planned costs and seasonal sales effects after the summer holidays.

Separately, the company has announced its investment in a HIREC wiping solution recovery system from MEMBRAFLOW control systems for its banknote line to improve sustainability and reduce the environmental impact of production. The new system uses highly durable ceramic membrane elements to remove the ink from the wiping solution, which can be reused.

‘By implementing this new system, we can now recycle up to 2,500 litres of chemicals per hour, resulting in up to 96% recovery rate’, stated Andreas Brunner, Head of Operations.

Lithuania Debates Future of Low Value Coins

The Lithuanian parliament, Seimas, is to consider a bill on rounding cash payments, a step towards phasing out one and two euro cent coins.

The plan is to start rounding off cash payments from May 2024, giving enough time for retailers to upgrade cash registers.

This will only apply to cash payments, not card payments, bank transfers, currency exchange, cash transfers, cash deposits and cash withdrawals.

Six EU countries have already introduced similar rules in order to move away from one and two cent coins, with both neighbouring Latvia and Estonia also planning to do so. Latvia has already drafted a law to allow rounding, having surveyed the public over several years to elicit support for the measure. Estonia’s central bank is planning to introduce rounding next year.

Latvia Works on Access to Cash

The Bank of Latvia, Finance Latvia and commercial banks have agreed to continue implementing measures to ensure the availability of cash in 2024. These measures are included in an MOU signed in the autumn of 2021, which was renewed at the end of November.

The signatories agreed on a number of measures including a stipulation that every municipal centre has at least one ATM and ensuring adequate actual accessibility of ATMs to consumers at least 12 hours a day.

Financial institutions are working on consolidating the role of cash and the requirements for access to it in the country with a law that would take effect as of January 2025.

New Cash Centre for UAE

CashTrans, a subsidiary of the UAE’s Al Ansari Financial Services Group, has inaugurated a new cash management centre in Dubai to provide access to a range of cash vault services. These include the import and export of banknotes internationally, and the local handling, storage and transfer of cash and valuables for companies throughout the UAE.

CashTrans was founded in 2011 to provide cash transport, cash processing, ATM/ CDM management, armored vehicle services and secured storage. The new centre is located in the secure Dubai CommerCity area, near Dubai International Airport, and its services include cash processing, fitness sorting and reissue, and vaults.

CashTrans says the new 20,000 sq ft facility has a 24.7 command and control room and multi-layered security protocols, cutting edge technology and advance cash processing equipment to ensure the required security and compliance levels in line with international best practices, with all cash movements within the centre and between the centre and customer locations tracked in real time.

Zimbabwe Extends Multi-Currency System

Zimbabwe will extend its multi-currency system, with the US dollar as its anchor, until 2030, according to an announcement made by the government.

Previously, the government had indicated that the multi-currency system would be phased out by 2025, leading to uncertainty in the banking sector, with some banks refusing to approve loans beyond 2025.

In a government gazette, President Emmerson Mnangagwa revoked the 2019 order that had set the 2025 deadline.

In 2009, due to rampant inflation, Zimbabwe abandoned the Zimbabwean dollar and adopted foreign currencies, primarily the US dollar but also the South African rand. The government reintroduced the local currency in 2019, but it has quickly depreciated again.

Zimbabwe recently held the title for the world’s highest inflation rate, 150%. However, it has now lowered to 130%, relinquishing the spot to Argentina. The latter’s new president, Javier Milei, included a commitment to dollarisation as part of his election manifesto.