Despite the rapid spread of digital payments, cash in circulation across the MENA region continues to grow. Claudio Sgarlata, Global VP and Managing Director MEA at Giesecke+Devrient, global leader in SecurityTech, explains why central banks and financial institutions are investing in smarter cash infrastructure and what it takes to modernize a system that billions still depend on every day.
How is the demand for cash management solutions evolving across the MENA region, and what key trends are shaping this transformation?
Across the MENA region, we observe a significant evolution in the way cash is managed. This is supported by sustained population growth and steady economic expansion across key markets, factors that drive overall transaction volumes and, in many markets, increase the total amount of cash in circulation. While digital payment options are expanding rapidly, cash remains deeply embedded in daily commerce and cultural practices. Many countries in the region still fall into what we classify as “High Volume” or “Cash Paradox” segments, meaning that even though digital transactions are rising, the absolute amount of cash in circulation continues to grow. This is driven by large informal sectors and continued preference for physical cash, and the enduring role of cash as a trusted store of value. As a result, governments and financial institutions are increasingly looking to modernize their cash operations. They seek solutions that enhance visibility, optimize logistics, and ensure that cash remains reliably accessible while controlling the growing operational costs associated with fluctuating demand.
Despite the rise of digital payments, cash continues to play a significant role in many MENA economies. How does G+D view the future of cash in this evolving financial ecosystem?
G+D sees the future of cash as a transformation into a hybrid model where physical and digital money coexist. Cash remains a foundation of trust in any society, it is resilient in crises, inclusive for populations with limited access to banking, and remains the most reliable backup when digital systems falter. Even in countries that have embraced digitalization, recent years have shown a renewed appreciation of cash’s role in stability, national identity, and financial autonomy. From G+D’s perspective, the most sustainable path forward for MENA markets is one that preserves payment choice. Cash will continue to play a vital role alongside new forms of public digital money, such as Central Bank Digital Currencies (CBDC), ensuring resilience, sovereignty, and accessibility for all citizens.
What are the biggest challenges financial institutions and governments face in managing cash efficiently across the region, and how can these be addressed?
Managing cash is becoming more complex across MENA. Demand is more challenging to predict, while expectations for availability remain high. Ensuring widespread access to cash remains a top concern, especially in rural or remote areas where ATM and branch density is low. At the same time, maintaining adequate availability, specifically the right denomination mix, can become increasingly complex as demand patterns fluctuate. Efficiency is another pressure point: handling and distributing cash entails high fixed costs, and stakeholders must manage these costs even as digital payments start to reduce transaction volumes. Resilience has become critical. Countries must be equipped to withstand and rapidly respond to natural disasters, cyberattacks, operational disruptions, or sudden surges in cash demand – events that can strain even well‑established networks. These challenges can be meaningfully addressed by modernizing cash operations through automation, predictive analytics, and optimized logistics. Central banks and commercial players can further enhance system-wide resilience by strengthening collaboration, investing in crisis preparedness measures, and adopting innovations that streamline cash handling without compromising access, continuity or trust.
How is G+D leveraging innovation and technology to enhance the efficiency, security, and transparency of cash management systems in MENA?
G+D supports the region by integrating a broad set of advanced technologies into the currency cycle. Artificial intelligence plays an increasingly prominent role. It enables more accurate forecasting of cash demand, allowing institutions to prepare for seasonal, regional, or event-driven fluctuations. AI also helps optimize ATM replenishment routes and Cash in Transit (CiT) operations, reducing both the environmental impact and operational costs. A key pillar of this modernization is the automation of cash operations. G+D’s high‑speed processing systems and intelligent software platforms streamline banknote handling from the moment cash enters the system to its final redistribution. Automated fitness sorting, counterfeit detection, and real‑time data capture significantly increase throughput and reduce the need for manual intervention.
Beyond, G+D brings innovations in banknote security to help central banks stay ahead of counterfeiting threats. As many central banks in the region intensify their efforts to enforce clean‑note policies, a reliable and widely deployed sorting infrastructure becomes essential. Data transparency is strengthened through solutions that analyze banknote lifecycles without tracking individual notes, ensuring both operational insight and privacy protection. Combined with standardization of packaging, labeling, and digital interfaces, these innovations make cash management more secure and efficient.
Can you share how advanced solutions such as automation and data-driven insights are helping optimize cash cycles and reduce operational costs?
Automation and data-driven insights allow institutions to better anticipate demand and manage inventory more efficiently. Automated cash handling at retail points of sale, for example, allow businesses to process and secure cash with minimal manual effort. This reduces the frequency of cash pickups, stabilizes local cash flows, and ultimately lowers the burden on both retailers and CiT companies. Data-driven insights play an equally critical role: by analyzing patterns such as banknote wear, regional usage differences, and seasonal demand, institutions can refine their recycling and distribution strategies. This leads to fewer unnecessary banknote replacements, more efficient use of resources, and a marked reduction in excess inventory. Predictive tools also make transport planning more efficient, enabling CiT routes to be adjusted dynamically to reflect real-time conditions. Overall, these innovations help stakeholders achieve a more efficient and cost-effective cash cycle.
With increasing focus on financial inclusion, how can effective cash management infrastructure support have underserved and cash-reliant populations in the region?
Cash remains the most accessible form of payment for many people, particularly in rural areas and among populations with limited access to banking or digital services. A robust and well-managed cash infrastructure ensures that every individual – regardless of income level, geography, or technological access – can participate in the economy. For many underserved populations in MENA, cash is not only a payment method but a tool of autonomy, trust, and day-to-day survival.
By maintaining reliable access points such as ATMs, post offices, or cash depots, and by ensuring robust distribution networks, central banks and financial institutions enable these populations to meet their basic financial needs. During crises, cash infrastructure becomes indispensable, offering continuity when digital systems may be disrupted. Looking ahead, integrating strong physical cash infrastructure with complementary digital public money, such as future CBDCs, will create a more inclusive, flexible ecosystem. G+D is a trusted partner in this cash cycle transformation – strengthening cash infrastructure alongside digital progress to keep financial access practical and inclusive for everyone. The full framework for cash cycle modernization, including how we’re applying these principles across MENA, is available at G+D-We-run-your-cash
