7-Eleven banks on ‘recyclers’
Recyclers are similar to the familiar cash dispensing machines except that they also allow the deposit of money in an instant
As reliance on convenience stores increase during the pandemic year, retail store chain operator Philippine Seven Corp. has partnered with Seven Bank of Japan to add innovative cash-recycling automatic teller machines (ATM) in 7-Eleven stores.
The equipment will be installed initially in more than 150 stores in Mega Manila.
These are similar to the familiar cash dispensing machines except that they also allow the deposit of money in an instant.
Such machines are expected to compliment the growing services available in the ubiquitous stores which are expected to increase the level of financial inclusion.
The so-called cash recyclers looks like any other ATM on the outside.
However, ATM only allows withdrawal of cash compared to cash recyclers in which deposits are accepted which are immediately credited to an account.
Instant bank service
When cash is deposited, a recycler counts the currency notes and displays the amount and denomination. Once it displays the amount, the machine user needs to confirm if the amount is correct, and the transaction will then be completed.
The deposit should be made on the same bank that runs the cash recycler. For instance, Banco de Oro customers can only deposit in a cash recycler of the same bank.
The recycler, however, does not accept torn, taped or mutilated notes.
The financial highlight based on the Philippine Seven Corp’s 2020 audited financial reports is net loss of P419.7 million in 2020 which was a reversal from the strong profitability level generated in 2019 as the pandemic adversely affected sales of 7-Eleven stores particularly in the office and school clusters.
Still in tough spot
“We are not out of the woods, by any stretch. Our financial performance has been abysmal, and when our profit and growth numbers will return depend on not just the pandemic and how the Philippines navigates it’s end, but on how quickly our online and offline pivots take root, if at all,” company President and CEO Jose Victor Paterno stated.
He added it is better to look not at numbers and forecasts but instead at one’s position relative to others caught in the same “fierce and unpredictable storm.”
The company takes pride and confidence in a proactive pivot executed at speed, helped as it was by pre-work before the pandemic, relative to that of more optimistic peers, he explained.
When cash is deposited, a cash recycler counts the currency notes and displays the amount and denomination.
The past twelve months have been unprecedented in terms of hard and detailed work, big ambitions, and sheer determination to remake the company in the face of adversity, Paterno noted.
“Perhaps the closest that comes to mind is when new management took over in 2005 to remake a struggling 200 store chain with a lackluster balance sheet, competitors closing in, struggling morale, and yearly strategic plans; they buckled down to work on improving processes and metrics, tweaking the customer value proposition, and embarking on strategies that would not pay off for several years,” he indicated.