After reviewing Brinks Q1 2020 conference call transcript I realized that Brinks is launching Cirreon Banking under their Brinks Complete solution.
Brinks is in the midst of launching Strategy 2.0. NamSys is critical to Brinks strategy 2.0 in various forms, including, smart safes, recyclers and now as the dashboard for Brinks Complete.
Brinks is targeting customers that previously didn’t see enough value in their current offerings to become customers. Brinks Complete provides a value-driven offering to this previously underserved market.
40% of Namsys’s revenue comes from Brinks. Their relationship with Brinks is critical to their success. The launch of Brinks Complete integrated with Cirreon Banking should only strengthen that relationship.
Disclosure: I own shares of CTZ.V
Lets quickly review what Cirreon Banking is. Cirreon Banking provides much of the same functionality as a smart safe but without the physical piece of hardware.
A customer can make and track deposits through their Cirreon Banking dashboard. Advanced credit for the deposit can be made into the customer’s account before the deposit is picked up. This allows a company to get cash into their bank account much faster to help with working capital.
Cirreon Banking also allows for a customer to request change for drop off at their location easily and efficiently. The solution saves time (no more walking to the bank) and provides needed insight into the cash flowing through a company.
Underserved Market Opportunity
Brinks has identified that a very large portion of U.S. retailers do not have any relationship with a cash management or cash in transit (CIT) company. Brinks speculates that these companies don’t see the value in partnering with a CIT to get their cash to the bank. They see CIT’s as expensive, cumbersome and risky.
As a result of this perception, 90% of all U.S. retail locations do not have a cash management solution.
In order to grow within the U.S. Brinks is targeting 90% of retail that is “unvended”. Brinks gets even more specific and wants to initially target companies with over 500 locations.
What does this opportunity mean to Brinks? Just the small blue and white striped sliver represent a 50% increase in Brinks U.S. retail revenue. There is a massive opportunity if Brinks can show these companies that Brinks Complete is a cost-effective cash management solution then their current cash strategy.
Brinks 5 Year Business Strategy
Brinks began a new global strategy in 2017. Strategy 1.0 was to drive organic revenue growth and increase profitability. Strategy 1.5 was focused on acquisitions, which they have done a ton of. Brinks is in the midst of completing its largest acquisition, $840 million for much of G4S’s cash operations.
That brings us to Strategy 2.0, expanding high-margin, high-value, cost-effective services. NamSys is a major part of Brinks Strategy 2.0.
Now that Strategy 2.0 is the focal point of Brinks business strategy we are getting more information on what Strategy 2.0 looks like. In Q1 they provided details on a pilot project they have been running called Brinks Complete.
Brinks Complete is the offering that they have come up with to penetrate the 90% of retailers that have no cash management solution. The company is trying to change the appeal of Brinks to customers that still walk their deposits to the bank and may not handle enough cash to require a smart safe. CIO Rohan Pal describes Brinks Complete at length in the Q1 conference call.
Brinks Complete is controlled through the Brinks 24SEVEN app. Using the Brinks 24SEVEN app customers make deposits, track cash movement, obtain access to provisional credit, order change, and overall save time.
So how does NamSys and Cirreon Banking fit into Brinks Complete? On the April 2019 annual meeting conference call, COO Jason Siemens discussed Brinks 24SEVEN.
“Lastly, our Cirreon banking product, which allows customers to–essentially,
it’s a self-service portal for commercial cash user. It continues to be
successful, we’re part of the Brinks–what they call 24SEVEN products. So, if
you Google “24” and the word “seven”, you would find Brinks’ explanation
of what that product does, and we service the backend for that application.
And that’s one of the products I mentioned early on that was… our recent
revenue increase was partly due to that, the rollout of that product. So, we
hope that if Brinks is successful, then that would enjoy some of that success
At the time of this conference call, I googled Brinks 24SEVEN and very little was available. An app in the Google app store was present but that’s about it. Since the 2019 annual meeting, I haven’t heard or read a thing about Brinks 24SEVEN.
Based on the information I read on the Brinks call regarding Brinks Complete and the above quote from COO Siemens it sure looks like Cirreon Banking is the dashboard for Brinks Complete.
This is a pretty major win for NamSys that no one is talking about. NamSys is a major piece of Brinks multi-year strategy to try and capture more market share in the U.S. Similar to the smart safe where NamSys is the software component of Brinks Compusafe, Cirreon Banking will be the software component of Brinks Complete via the Brinks 24SEVEN app.
Comment From COO Jason Siemens
I sent an email to COO Siemens confirming that Cirreon Banking is still integrated with Brinks 24SEVEN. He did confirm that Cirreon Banking is integrated into Brinks 24SEVEN. I asked a couple of other questions about the integration and possible market opportunity for NamSys.
COO Siemens told me that he cannot provide any further details regarding their Brinks partnership. He said:
“We have such a close partnership with Brink’s that we risk disclosing non-public information on their product strategy. You will find us being much more careful with our comments in public sessions as well.”
In the future, we might be getting even less detail from COO Siemenson their business relationship with Brinks. While I understand that NamSys doesn’t want to put their relationship with Brinks at risk it would be nice if they communicated more with investors regarding the projects they are allocating capital too. COO Siemens has mentioned that international expansion is a priority but nothing has been mentioned about Brinks 24SEVEN in over a year.
NamSys is further integrating itself into Brinks with a second offering. This isn’t a fringe product for Brinks. They have made Brinks Complete a focal point of their Strategy 2.0 to capture greater market share in America.
Brinks is trying to address a consumer that previously didn’t see enough value in Brinks services to become a customer. There is a very large opportunity that can be captured if Brinks Complete resonates with the consumer and adds value to their business.
If Brinks Complete is successful then I expect other CIT companies to begin offering a similar solution. Since NamSys is the smart safe dashboard provider for many CIT companies it’s only logical to think they would turn to NamSys for Cirreon Banking as well.
The potential of Brinks Complete/Cirreon Banking I feel has completely flown under the radar. If Brinks is successful in gaining market share with Brinks Complete it could rival the revenue provided by Cirreon smart safe. This would be a really nice boost to NamSys and greatly assist them to maintain their growth rate.
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