What does the future hold for a 160-year-old cash handling company when major trends across the world portend a shift away from cash? The company in question is Nasdaq Stockholm-listed Loomis.
Loomis has increasingly found itself at the intersection of two forces. On the one hand, an increase in the acceptance of debit/credit card by merchants, a rise in e-Payment services, the convenience of mobile wallets and many more fintech innovations are challenging the cash ecosystem. On the other hand, cash in circulation has been increasing since 2007 (except in Russia and Sweden) and it remains the most common payment method in the world in 2018. Within this context, Loomis employs around 25,000 people carrying out cash in transit (CIT) and cash management services (CMS) through an international network of more than 400 branches in over 20 countries with annual revenues of SEK 19.2 billion ($2 billion) in 2018. Loomis customers are primarily banks and retailers – two industries that are being heavily disrupted by evolving customer behaviors and a new breed of competitors.
“The strategies, capabilities, processes and mindsets that have led us to where we are today will not take us into the future,” stated Patrik Andersson when he took over as the new CEO of Loomis in 2016. He launched a strategy review process and established dedicated teams comprising people from cross-functional areas to explore the future trajectory of Loomis’s businesses – what is working and what is not, what are the untapped opportunities and which threats could derail its strategy.
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