A long-term Banktech partner for their ATMs, West HQ was looking for a more secure way to handle cash.
Daniel Brandon, CFO, came to the venue from a non-gaming background and so was unused to the volume of physical currency that moves around the business. However, it didn’t take long for Daniel to realise the cash handling process in the venue was more ‘people-heavy’ and labour-intensive than it needed to be.
Not only were the human checks and balances insufficient to prevent theft or counting errors, but the safe was opened regularly throughout the day and night, seven days a week, which created an exposure well beyond what Daniel was comfortable with.
‘The cash handling process in the venue was unfortunately high-risk. The controls that were in place were not sufficient to protect the cash or the staff,’ explained Daniel.
As a result, the club was experiencing cash shrinkage that could not be tracked.
‘Before we automated cash counting, cash shrinkage accounted for a small amount every week. However, there was one occasion when a material amount of cash went missing, and it was untraceable due to the manual nature of our process. This significantly increased the average shrinkage – and that, plus the exposure of cash in the safe and our wage bills, made it necessary to invest in a cash recycling solution,’ said Daniel.
Daniel estimated that cash shrinkage overall in clubs can probably add up to around one percent of cash takings, similar to the amount cited in retail environments when cash handling processes are manual.
This regular difference, when annualised, becomes a significant number, and not one Daniel wanted to see on his balance sheet.