Cash remains a cornerstone for businesses during the festive season
This festive season, as consumers flock to their favourite shops and stalls, it's crucial for businesses to ensure their cash management systems are as robust as possible. Discover how South African enterprises can leverage cash management solutions to build resilience and thrive in a competitive environment.
Image: Sigciniwe
As South Africa enters one of its busiest trading periods of the year, businesses are presented with both opportunities and challenges, particularly in the realm of cash management.
Despite an increasing inclination towards digital payments, cash continues to serve as the lifeblood of commerce, particularly in townships and informal markets.
According to data from Standard Bank’s SME clients, over 59% of transactions in these sectors still rely heavily on cash.
The festive season is not just a time of heightened consumer activity; it is also a critical moment for businesses to reassess their cash management strategies.
“Effective cash management, especially during busy periods such as the festive season, is more than operational; it is a strategic advantage,” explains Dwain Breedt, Head of Cash and Distribution at Business and Commercial Banking, Standard Bank South Africa.
“Higher footfall and extended trading hours translate into larger daily takings and increased cash-handling moments. Without proper processes in place, businesses risk encountering delays, errors, and vulnerabilities to crime.”
Food stalls, street vendors, and small retail shops are particularly exposed during this period.
The rise in cash-related robberies that typically peaks in December necessitates rigorous attention to security.
To mitigate these risks, experts recommend that cash-intensive businesses consider banking partners that offer tailored cash management solutions.
Strategies for secure cash management
Some essential services that can bolster the security of cash operations include:
- Secure cash-in-transit services
- Smart cash deposit devices with scheduled and immediate value options
- Digital reconciliation tools for real-time visibility
- Cash forecasting support to plan liquidity needs
Additionally, it is vital for businesses to leverage traditional channels such as cash-accepting branches, cash centres, and ATMs, especially during peak trading times.
These services streamline operations, reduce exposure to theft, and instil confidence among business owners and consumers alike.
Breedt highlights that, “Managing cash smartly on-site reduces risk and drives efficiency in daily operations. Businesses should limit the amount of cash held on-site as much as possible, schedule regular banking of cash deposits, and utilise secure banking channels.”
By prioritising secure and efficient cash management, businesses can position themselves for a smoother transition into the new year. With a firm commitment to supporting these enterprises, Standard Bank is prepared to offer innovative cash management solutions that safeguard revenue while streamlining operations.
Whether a business is just starting, grappling with complexities, or aiming for growth, the right cash management strategy can turn challenges into opportunities in a vibrant economy.
BUSINESS REPORT