C OV E R S T O RY
ACCESS TO CASH
Easy money The government has set out new powers to protect access to cash for millions of people across the UK.
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he UK’s largest banks and building societies will now be subject to new Financial Conduct Authority (FCA) powers to ensure the continued availability of withdrawal and deposit facilities in local communities across the UK, under new rules set out by the government. The measures will be legislated for in the upcoming Financial Services and Markets Bill. Under the new regulations, the FCA will be granted new powers over the UK’s largest banks and building societies, to ensure that cash withdrawal and deposit facilities are available in communities across the country. The FCA’s powers will allow it to address cash access issues at both a national and local level. To support the FCA, the government will set out its expectations for a reasonable distance for people to travel when depositing and withdrawing cash. This, it said, will reflect the existing spread of cash withdrawal and deposit facilities in the UK. Economic Secretary, John Glen, said: “Millions of people across the UK still rely on cash, particularly those in vulnerable groups, and today we are delivering on our promise to ensure access to cash is protected in communities across the country. I want to make sure that people are still able to use cash as part of their daily lives, and it’s crucial to ensure that no person nor community across the UK is left behind as we embrace a more digital world.”
10 I SLRMAG.CO.UK / ISSUE 106 / WEDNESDAY 25TH MAY 2022
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he news has been welcomed by the Association of Convenience Stores. Findings from ACS’ 2021 Local Shop Report show that consumers think that two of the most valuable services offered in convenience stores are cash machines and the Post Office. ACS Chief Executive, James Lowman, said: “We welcome further detail on the how the Treasury plan to legislate for access to cash and delivery of a flexible criteria for cash provision between urban and rural areas. “Cash is still an incredibly important way of paying for goods and managing money for millions of people, and convenience stores play an increasingly important role in being often the only provider of ATM services locally. One of the most effective ways to promote access to cash would be to ensure banks provide adequate funding for a viable ATM network, yet this has been cut in recent years.”
Consumer group Which? said it was good to see the government acting and giving the FCA powers to protect the millions of people for whom cash remains a vital lifeline. Rocio Concha, the group’s Director of Policy and Advocacy, said: “The sheer scale of cuts to the UK’s ATM and bank branch networks in recent years has seriously eroded access to cash for consumers and communities around the country. “The Treasury’s proposal to base reasonable access to cash on geographical distances is a decent starting point, but this can often be a blunt tool, so the FCA must fully consider a wide range of factors when determining a local community’s access to cash needs.”
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he news has also been welcomed by the UK’s main ATM machine network LINK. Its Chief Executive, John Howells, said: “We are pleased that the government recognises that protecting access to cash is vital. We know that consumers are becoming increasingly digital and using alternatives to cash, but there are still 10 million people who rely on cash. “A great deal of progress has been achieved by the banking industry over the past couple of years, in which LINK has played a critical role. This is good news for any community in the future as we continue to protect access to cash services and we look forward to seeing the details of the Bill in due course.”
