Confidentiality, security, aesthetics, expertise… these are just some of the buzzwords surrounding one of the most niche sectors in our modern economy: the world of banknote printers. A select few skilled, tech-savvy, virtuoso firms now dominate this highly peculiar market, and one French firm, a little-known gem, stands out for its unwavering commitment to adamantine security features and bona fide quality.
Oberthur Fiduciaire, founded in 1842, has been in the banknote printing industry for 50 years. Traditionally a sector that can be financially straining due to exorbitant operational costs, printing firms must demonstrate a certain expertise to be able to jump on the bandwagon and sign contracts with central banks around the globe. Oberthur Fiduciaire is one of the few printing companies that has excelled in its field, expanding to become a leader in high-security printing, supplying governments and central banks in over 70 countries.
The firm’s clients would have been relieved that it was able to show real resilience during the recent economic crisis following the pandemic, as highlighted by Etienne Couëlle, the company’s General Manager: “The public health and economic crises have demonstrated just how resilient Oberthur Fiduciaire is which has enabled us to be 100% invested in our work. The numerous central banks that make up our clientele have benefitted from our focus. This resiliency did not happen by chance, but is the result of our optimized value chain that is expertly handled by our teams.”
Research and development
Oberthur’s Research & Development division enables the firm to offer modern and secured solutions for banknotes, with a particular focus on security features that protect them from fraud and render them resistant to counterfeiting. The firm regularly files new patents covering the state-of-the-art technologies they use and integrate into their products. These patents are generally focused on two main areas: security and durability. “Many printing skills, finishing skills, and design skills are needed, besides growing R&D activities, all which develop new security features to adapt new techniques and new processes, to enhance the security and the durability of banknotes,” said CEO Thomas Savare. “These are some of the main concerns of the central banks we work with.” This strategy requires a high level of expertise and know-how when it comes to technological development, something the firm has in abundance.
These features include Bioguard, an antiviral varnish applied to the banknotes post-print that protects the surface area and reduces the risk of viral or fungal transmission. First deployed against earlier disease outbreaks, this solution became particularly prevalent and sought-after during the Covid-19 pandemic, as anxiety about surface transmission quickly spread.
Other features, focused on security, are highly modern and developed using state-of-the-art technologies. These include innovative security threads, such as the Pulsar color-shift thread, an innovative security element integrating micro-optics to create a dynamic visual effect, or Relief, a new generation of 3D threads which offers striking bas-relief 3D effects in what the company terms “a major advance in security features for threads and unlike anything else on the market”.
“When it comes to strategy, we have to master the printing techniques themselves, but we also have to master the job of integrating different technologies, different substrates, and different security features, says Thomas Savare. We have to do that within an environment that is highly industrial because we’re supplying billions of individuals with products that are numbered and personalized. And these products need to be so secure that forgery would be impossible, with the resistance needed to last the day-to-day use of a banknote.”
The firm has spent a century and a half analyzing, refining, and adapting its strategic position in order to react to the profound evolution in market trends that continuously impact the sector. Always striving to ride the technological wave, rather than being subjected to it, Oberthur Fiduciaire has been able to anticipate different changes in the banknote printing sector, often realigning its skills, or abandoning certain facets completely, to avoid the ever-present threat of obsolescence, especially in a global economy where cashless payment systems remain on the rise.
Securing the supply chain
Having the capacity to develop high-tech, secure, state-of-the-art, aesthetically pleasing banknotes not only depends on decades of expertise in printing but also on knowing that a secure supply chain is crucial to garnering confidence and trust among clients. Developing an innovative approach to control the production chain is what has set Oberthur Fiduciaire apart from its competitors. “Oberthur Fiduciaire has been working for many years with accredited suppliers. Our supply chain, therefore, is based on a relationship of trust which enables us to complete intricate projects,” according to the firm’s website.
Indeed, Oberthur’s 2019 acquisition of the Dutch specialized paper manufacturing firm, VHP Security Paper, not only consolidated its supply chain during a period of intense economic volatility but also consecrated its position as a truly modern and innovative company that is capable of finding long-term solutions to complex problems. Founded over 350 years ago, VHP Security Paper has long been a reference in the supply of paper to banknote printers. With this acquisition, Oberthur Fiduciaire is now able to manufacture custom-made papers that meet the security, quality, and sustainability requirements of its clients. For example, HD Vision, a secure and user-friendly imprint based on newly developed micro-perforation technology, enables Oberthur Fiduciaire to offer a remarkably bright, high-contrast watermark that provides incomparable definition and detail, thus making it harder to counterfeit.
Ultimately, Oberthur Fiduciaire’s acquisition of VHP Security Paper is a typical case of mutual enrichment. Oberthur allows the Dutch company to have a second life, and in return, the major player in the printing industry was able to consolidate its supply chain and reinforce its resilience thanks to the shared knowledge provided by VHP.
All this experience has demonstrated that Oberthur Fiduciaire is a center of excellence in the banknote printing world. Its total devotion to banknote security, technological development, supply chain slickness, and anti-fraud features makes the firm stand out in an already niche market.
