Bank Security & Cash Handling
The amount of cash in circulation is continuing to increase. Central banks around the world have gradually begun to change their roles and strategies regarding cash handling.
This entails an altered situation for the banks, which in turn generally prefer cash handling to take place in the shops. This shift is placing greater demands on cost-effective solutions, where concepts for self-service and outsourcing of cash handling are becoming increasingly common, which in turn drives developments on the CIT market.
There are estimated to be over 800,000 bank branches worldwide, and there is a high rate of branch openings on markets such as India, Indonesia and China.
The world’s 195 central banks have more than 2,000 branches in total, and the number of counting centres managed by security companies is increasing year on year. In addition, there are more than 5,300 counting centres and hundreds of thousands of stores around the world that could benefit from Gunnebo’s offering in physical security and cash handling. There is a clear trend of security-related solutions developing from physical to electronic security. Another factor driving the Group’s business is legislation and common practice on both a national and an international level.
Gunnebo has a strong position in the market segment that places high demands on quality and requires product certification. Business within the segment is driven largely by increased awareness about the importance of protecting valuables against fire and theft, as well as by the two global brands, Chubbsafes and Fichet-Bauche. Furthermore, Gunnebo has a number of very strong local brands such as Rosengrens in Northern Europe, Steelage in India and Hamilton Safe in the US.
In recent years the percentage of the Business Area’s sales conducted through a global network of dealers and distributors has increased. This is a trend Gunnebo is actively striving to develop further.
The market for security services is extremely fragmented and the conditions for different security solutions vary. Consequently, the competitive environment is complex and varies from one market to the next.
- Electronic security: Many major multinationals, and many regional small and medium-sized companies
- Remote monitoring: Many large multinationals, and a number of small and large national players
- Physical security: Equipment manufacturers compete alongside regional players such as distributors and locksmiths
- Cash handling: Primarily equipment manufacturers and national service providers, but an increasing number of CIT companies are also starting to offer security-related services
- Entrance control: Mainly integrators, but equipment manufacturers are also sometimes engaged for maintenance and retrofitting
Important driving forces on the market are changes in regulations, economic downturn – which tends to increase demand for maintenance and service as well as productivity improvements – and a larger number of customers looking for suppliers with a comprehensive offering on a global scale. Also, trends on consolidation to core business lead to the outsourcing of services.
One of the most important driving forces for the entrance Control market is stricter demands on having constant control over who is where in a building. The increasing population in cities also increases the need to be able to efficiently regulate and Control passenger flows in mass transit and visitor flows at sports arenas, exhibition centres and other venues that host public events. Many customers also want to be able to link together separate systems for entrance and ticket control.
Regulatory changes are one important driving force in the fire safety segment. In both India and Indonesia, Gunnebo offers products that meet the latest certification requirements, and this has an important effect on developments in the segment.