Why do ATMs keep running out of cash so quickly?

The struggle is real trying to get money out of ATMs, especially recently. It feels like you have to try at least two before you get any cash. 

So one of the issues surrounds the transportation of cash to refill the ATMs.  That’s the job of security company, Beryllium, which as you may know, has been under attack from armed robbers all year.

Beryllium President Andre McLean was on Taking Stock recently, and broke down some of the challenges they’ve been having, including inflation and security.

We’ve been talking about inflation, the cost a livin’, for a while now. August’s inflation rate was almost 7%. That means on average, prices were 7% higher than they were in August last year.

And if goods and services cost more, we’re gonna need more money. And because Jamaica is still so heavily dependent on cash, that means more trips to the ATM. 

On that note, McLean pointed out that Jamaica uses more cash on a daily basis than other countries.  FYI, Beryllium operates in nine countries so he does have some data on this other.

Banks have also had to increase their ATM limits over the years.

Again this is partly due to inflation. When the cost a livin’ was lower, banks could have lower withdrawal limits, but as prices go up, the amount of cash customers are able to withdraw has to go up.

Also, banks have been forcing people to use the ATMs by charging high fees to withdraw at the teller, or not offering teller services at all.  That means more people are using the ATMs.

Then there’s the other issue – security. 

McLean pointed out that even if an ATM could hold up to $50 million that will last the public for a while, the banks most likely won’t fill it up all the way because ATMs are being frequently vandalised and stolen.

So even though ATMs have the capacity to hold more money, banks have to weigh the risks of having a fully stocked ATM versus the likelihood of it being stolen.

Then, of course, the cost of doing business for Beryllium has gone up because of the attacks on them.

So according to McLean, Beryllium costs have more than doubled since the first attack in February. That means it’s more expensive for banks to hire them to restock ATMs. And rightfully so, the guards have been a target this year. 

The company has had to double up teams for increased security. So what used to be a three or four-person run, now takes six to eight people.

And locations where they might have gone two or three times a week before, they’ve had to cut back on because of the security risks.

Unfortunately, as of right now, there really aren’t any good solutions.  Even though the police have made arrests in several of the robbery cases, it seems criminals have been emboldened to continue trying to strike at Beryllium, so the security risk is still there.  

Plus the inflation risk is also still present.  The BOJ recently warned that they may need to start raising interest rates again, which could lead to the cost of living going up even more.

There is one other option but you guys don’t like when I say cashle… nevermind.

And that’s the bottom line.