Business and securities services provider Transguard transports an average of approximately AED 5 billion ($1.36 billion) in cash on a daily basis, according to managing director Greg Ward.
Speaking to Arabian Business on Tuesday, Ward said that the figure, however, fluctuates at various points at the month or year.
“It really depends. It depends on the day of the month, whether people are out spending. If it’s near Eid, people want new notes to give as gifts. Christmas time is another big time for shopping,” he said. “But [throughout the year] it’s probably about AED 5 billion a day.”
Transguard is currently the market leader in cash management solutions in the UAE, where it services over 90 percent of the country’s ATM network. Ward noted that the company’s fleet of armoured vehicles has grown to more than 450.
In May, the company announced that this business unit grew by 9 percent over the course of the year.
Additionally, Ward noted that advances in technology have allowed Transguard to make its cash management business more efficient, which, in turn, allowed it to generate new customers.
As an example, he pointed to a new form of high-tech safe deposit box used by outlets, which automatically hits the customer’s account and feeds data back to Transguard on the amount of money held inside, significantly cutting down on the amount of trips necessary to pick up cash.
“The money it goes in, it’s no longer their responsibility. Now its Transguard’s responsibility and we can measure from our control room how full that safe deposit box is,” he said. “Instead of going four times a day, we might turn up once every day two days.”
Initially, Ward says that the technology lead to a decrease in revenue, but in the long-term it proved to be a profitable move for the company.
“That’s because we were charging every time we went,” he noted. “But in the long-term, what it’s done is bring all the business our way because the customers love it, again since we’ll only charge them when we pick up. But we can manage our operations better.”
Transguard – which now has more than 66,000 employees – posted profits of $44.3 million in the fiscal year ending March 31.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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