The Cashless Future: How Technologies and Non-Financial Services Are Transforming Business

Introduction

Alfa-Bank, which is developing as a leading fintech company, won the “Excellence in Fintech” category at the prestigious Finnovex award on November 12. This recognition highlights the bank’s leadership in implementing innovations that not only provide advanced services to clients but also make their businesses more efficient. In this article, we will explore three key areas where Alfa-Bank demonstrates its leadership: the transition to cashless depositing, the development of artificial intelligence in fintech, and the creation of non-financial services.

Transition to Technological Cash Handling: Online Cash Deposit as the Future

The business services market is constantly evolving, and one of the latest trends is the shift from traditional cash collection to online. This trend is easy to explain: for entrepreneurs, online cash deposit is both cost-effective and convenient, as it increases the efficiency and security of their business.

Alfa-Bank offers its corporate clients an online cash deposit service that allows businesses to optimize financial processes and reduce costs. The essence of the service is that cash is deposited into a corporate account without the involvement of collectors. Bank clients can do it using ADMs (automated deposit machines), which can be installed directly on their premises – in a store, restaurant, shopping center, or any other location.

Advantages of Online Cash Deposit:

• Time and Resource Savings:Employees no longer spend time preparing for and waiting for collectors. After installing the ADM, businesses can completely eliminate non-core functions related to handling cash, allowing employees to focus on customer service and increasing sales.
• Immediate Credit:With online cash deposit, there is no need to wait for the money to be brought to the bank, counted, and credited to the account. The entire amount is immediately credited to the company’s account as soon as the employee deposits it into the ADM. This allows for prompt payments to suppliers and eliminates the need for loans.
• Increased Security:After depositing the money, responsibility for its safekeeping is transferred to the bank. This reduces risks associated with storing cash at sales points or in the office.
• Flexibility and Convenience:Money can be deposited at any convenient time without being tied to the collectors’ schedule. This is particularly relevant for companies with non-standard working hours or located in hard-to-reach areas.
• Cost Savings:Online cash deposit allows businesses to reduce transportation costs for cash by up to 20%. In the traditional form, clients pay for each trip to deposit revenue at the bank. With online cash deposit, money accumulates in the device, which can hold up to 5,000 bills, so collectors visit less frequently.
• Operational Efficiency Improvement:Automation reduces human error in counting money and processing documents. The device will accept bills, count them, check their authenticity, and issue a receipt.

According to bank experts, in the next two to three years, about 70% of companies will switch from traditional to online cash deposit. This is confirmed by the fact that more than 70,000 retail outlets across Russia are already using Alfa-Bank’s solutions for online cash deposit.

The New Generation of ADMs

Alfa-Bank was the first on the Russian market to launch the new generation of ADMs from the Moniron brand. These new devices enhance transaction security and can be adapted to specific businesses. Alfa-Bank configures the software according to the company’s request.

In the near future, ADMs will feature new options, such as:

• Depositing cash with a single button press without entering a PIN code.
• The ability to choose the account for revenue crediting.
• The ability to use ADMs without an internet connection.

These innovations make the process of receiving and crediting cash even more convenient and reliable for businesses.

Development of Artificial Intelligence in Fintech

In the modern world, artificial intelligence is becoming a key factor in the development of financial technologies. Alfa-Bank actively integrates AI into its products and processes, which improves customer service and enhances business efficiency.

AI in E-commerce

At the International Forum of Electronic Commerce and Retail ECOM&Retail Week, experts discussed e-commerce market trends. Bank analysts noted that the e-commerce turnover in Russia will grow by an average of 25% per year in the coming years. By 2028, one in three purchases in the country will be made online.

One of the key trends in e-commerce is the integration of artificial intelligence. AI will be actively used by both buyers and sellers. On the one hand, buyers will receive personalized recommendations and assistants that will help them choose products and complete purchases. On the other hand, sellers will be able to automate business processes, speed up data response, and create hyper-personalized offers for clients.

AI in Big Data Analysis

Alfa-Bank actively uses artificial intelligence for big data analysis. This allows the bank to offer its clients non-financial services based on data analysis. Key areas of AI use in data work:

• Diagnosis:Clients move from simple reports with retrospective data to diagnosis, i.e., understanding the causes underlying certain results. AI helps identify specific causes and relationships within the data.
• Proactive Response:Clients can react instantly to data and make decisions in real-time using AI models.
• Hyper-Personalization:AI allows the creation of digital twins of clients and conduct hundreds of tests simultaneously, ensuring hyper-personalized offers even for individual clients.

Integration with Partners

Alfa-Bank actively collaborates with partners to develop technologies. For example, the bank implemented an end-to-end online order process for automated deposit machine (ADM) services through API in collaboration with an organization specializing in cash transportation. This allowed for a reduction in manual labor, faster interaction between the bank and the partner, and increased transparency of operations.

Creation of Non-Financial Services

Alfa-Bank is focusing on creating non-financial services that help clients solve business problems and improve the customer experience. This is particularly important in conditions where clients expect banks not only to provide traditional financial products but also additional services that simplify their lives.

Payment via SBP at Self-Service Checkout

Previously, Alfa-Bank and one federal grocery chain launched payment via the System for Fast Payments (SBP) at self-service checkout. Now, the customers can pay for goods without cash, quickly and securely. The payment process is simple: just scan the QR code on the screen and confirm the payment in the Alfa-Bank mobile app.

This solution demonstrates the bank’s commitment to developing safe and convenient services that allow clients to make purchases without cash, using only mobile technologies. Today, the new payment method is available in more than 600 stores across the grocery chain where self-service kiosks are installed.

Multi-Bank for Corporate Clients

In addition, Alfa-Bank, together with other market players, launched a pilot project for a multi-bank service for corporate clients. The new service allows legal entities to view and manage data on accounts from both banks through Alfa-Business. Participants of the pilot project gain access to current balances on accounts in both Alfa-Bank and another bank. The multi-bank is built on Open Banking technology, ensuring a high level of information security and data confidentiality. The service consolidates the management of all company accounts in one window, increasing the transparency of funds movement and optimizing treasury processes.

Development of Services in the Housing and Utilities Sector

Alfa-Bank is implementing innovative solutions in the housing and utilities sector, which helps improve the quality of service for millions of citizens, develop modern technologies to simplify interactions between management companies and clients, as well as government agencies.

Conclusion

Alfa-Bank demonstrates leadership in the area of digital transformation of business, offering its clients innovative solutions that simplify their lives and increase efficiency. The transition to cashless depositing through online cash deposit, the development of artificial intelligence in fintech, and the creation of non-financial services are key areas where the bank is actively developing. Thanks to these initiatives, Alfa-Bank continues to remain at the forefront of innovations in the financial industry, providing its clients with modern and convenient solutions for running their businesses.