The Financial Conduct Authority (FCA) has recently introduced new rules to safeguard access to cash for customers around the UK. With the decline of cash usage due to digital payments the FCA has stepped in to ensure that vulnerable individuals who rely on physical currency are not left behind. While digital payments are more common, 3.1 million adults still use cash for everyday payments.
Under the new rules, banks and other financial institutions are required to provide reasonable access to cash services. This includes maintaining cash withdrawal and deposit facilities such as bank branches and ATMs. The rules are designed to prevent banks from closing such facilities without considering the needs of their local communities.
The impact of these changes is already evident. Branch closures have been paused, and essential ATMs are being kept in operation. Additionally, shared banking hubs are being established in areas with limited branch access, creating a sustainable model for future cash services.
These regulations not only protect the elderly and rural communities but also ensure that individuals who prefer using cash or have limited digital access are not excluded from financial services. The FCA continues to monitor and enforce these rules, promoting secure access to cash in the UK. This fosters a more inclusive approach to financial services while acknowledging the ongoing shift toward digital payments.
For more information, please see the FCA’s press release from 18 September 2024.
This article was written by Hope Phillips, a Trainee Solicitor within the Banking & Finance Team.
