Collaboration between banks with regard to cash processing and transportation is allowed

A collaboration between three major Dutch banks with regard to cash counting and sorting, and transportation services is allowed. The collaboration results in potential savings of at least EUR 35 million, but does not affect competition between banks. That is the conclusion of the Netherlands Authority for Consumers and Markets (ACM) following a complaint that was filed by cash logistics provider Brink’s against Geldservice Nederland (GSN).

GSN is a company that is jointly operated by three major Dutch banks: ABN AMRO, ING and Rabobank. Brink’s, which offers transportation services and cash processing services, among other services, believes that said collaboration violates competition rules. 

Chris Fonteijn, Chairman of the Board of ACM, comments: ‘If banks are able to bring down their costs, making them financially healthier, everyone will benefit. It creates an opportunity for banks to pass on such gains to consumers by lowering prices.’

From the banks’ perspective, the collaboration means that cash counting and sorting take place at fewer locations, and that the number of cash transports decreases because loads are combined. The collaboration may result in a restriction of competition in the cash transportation market. However, the Dutch Competition Act does provide for exceptions of the cartel prohibition if the benefits resulting from the collaboration outweigh the drawbacks of competition being restricted.

ACM assumes that the Dutch market will have enough room for multiple cash transportation providers, because GSN would like to be able to choose from multiple transportation providers when putting out to tender such services. Furthermore, the demand-side of the market for cash processing and transportation services has more players than just the banks, because businesses (small and medium-sized ones, but also major corporations) also take advantage of the services of cash transportation service providers, whereas GSN only offers its services to banks.

The Dutch central bank, which oversees the payments market, is represented in GSN’s management structure. ACM makes sure that the banks’ collaboration within GSN does not have an undesirable impact on the cash transportation market.