Coins and banknotes remain a “key budgeting tool” for many people, a boss at the City regulator has said, marking the first anniversary of its access to cash rules.
The ribbon has been cut on a new banking hub in Monmouth, Wales, marking a year since the introduction of the Financial Conduct Authority’s (FCA’s) rules.
Banking hubs are shared spaces, allowing customers of several banks to do their banking in a single place.
The FCA’s rules mean that before banks and building societies change cash services, such as closing a branch or ATM, they must assess the impact.
If significant gaps in cash access are found, they must plug them.
The FCA monitors and supervises how designated banks and building societies are complying with the rules protecting access to cash. People and communities who are concerned about accessing cash in their area can request a cash access assessment.
Monmouth is the 121st banking hub to open in 12 months.
A further 93 cash deposit services – such as ATMs and Post Office counters – have also been set up.
Twenty of the banking hubs were established following requests from local communities for their cash provision to be assessed.
The Monmouth banking hub, which had its formal launch on September 17, was one of the first banking hubs to be announced after the FCA’s rules were launched.
David Geale, executive director of payments and digital finance at the FCA, said: “Cash still matters – for many consumers it’s a key budgeting tool, and for small businesses, a way to handle daily takings.
“We’re helping to keep cash accessible in communities across the UK.”
Gareth Oakley, chief executive officer of Cash Access UK said: “We’re pleased to be bringing vital cash and banking services to communities where these are needed. Our shared banking hubs and deposit services, which serve the customers of multiple banks, can provide a sustainable solution in communities where essential cash services are needed.
“From banking hubs to cash hubs and deposit ATMs, our services come in different shapes and sizes to best meet the needs of each community, but whatever their format, they all provide easy and convenient access to cash and banking services.”
John Howells, chief executive officer of cash access and ATM network Link said: “While the way we pay for things is changing, around five million people still rely on cash or can’t use digital alternatives. Cash also provides vital resilience when digital systems fail or are unavailable.
“Protecting access to cash therefore remains essential. One year on, the regulations have had a positive impact and build on Link’s ongoing work to ensure every community can continue to access cash.”
Cash Access UK provides cash and basic banking services to communities across the UK, including sourcing and opening shared banking hubs and deposit services. Link helps to connect a reliable ATM network to banks and building societies and is also responsible for carrying out cash access assessments.
As part of its five-year strategy, the FCA is focused on helping consumers navigate their financial lives. It said that, for many, this will include the use of cash.
Discussions on how else access to cash can continue to improve, and what is working well, will be held later in the year.
The FCA said initial forums will focus on access to cash, with future forums broadening the scope to also consider wider banking services. Any changes to the FCA’s powers over access to cash or banking services would have to be implemented by Government.
