BANKS in Singapore spend about US$200 million a year on ATM maintenance, logistics, insurance, counting and cleaning cash, and a host of other expenses just to maintain circulation of physical cash, estimates Singapore startup SoCash.
The Financial Sector Technology & Innovation (FSTI) Scheme – Proof Of Concepts (POC) grant aims to help Singapore-based financial institutions or technology providers work on the early stage development of their products.
Hari Sivan, Co-founder and CEO, soCash, says its unique value proposition is that it turns offline retail outlets into cash withdrawal points — and without the need for the customer to spend money first (unlike supermarket stores in Australia that require a purchase).
“Our business model avoids the need to buy anything before getting your cash, which most supermarkets force you to do. And in soCash, the transaction happens on bank’s mobile app, so it is safer than using the card and PIN,” Sivan told e27.
This also reduces the need to establish expensive ATM networks, which sometimes charge exorbitant fees for cash withdrawals.