Diebold Nixdorf is set to assume the management of the cash supply chain for German Degussa Bank’s 220 automated teller machines (ATMs).

Under the agreement, Diebold Nixdorf will provide Diebold Nixdorf AllConnect Services to offer end-to-end cash management services. It will include all aspects of ATM operations such as cash supply and implementation of banking requirements.

Diebold Nixdorf will partner with German licensed bank Reisebank, which will take over the cash and asset management responsibility for Degussa.

The initiative to outsource ATM management operations is expected to enable Diebold Nixdorf to reduce its total cost of operations as well as enable its resources to provide more time on other work to improve its services.

Degussa Bank service provider manager Uwe Hasse said: “When we considered how to handle the operation of our ATMs in future, we analysed various business models and found Diebold Nixdorf’s cash-as-a-service offer to be compelling.

“A single source for all our cash supply services means we benefit in several ways: Fewer funds will be tied up when our ATM network is renewed, we will need fewer resources to meet legal requirements and all the service providers involved will be controlled centrally.

“As a result, the management team can concentrate more intently on issues related to the digital transformation.”

Besides Degussa Bank, several Scandinavian banks have outsourced the cash supply process to another company.

Last year, multiple entities and data centres in Sweden and Denmark contracted Diebold Nixdorf to outsource their ATM networks.