New rules are now in force for several major banks, including TSB, Lloyds, Natwest, and Santander, aimed at ensuring easier access to cash for individuals and businesses in local communities in the UK. These rules, overseen by the Financial Conduct Authority (FCA), empower local communities to request an assessment to identify gaps in local cash access. From September 18, interested parties such as individuals, groups, organisations, or local businesses can request such assessments.
Emad Aladhal, director of retail banking at the FCA, highlighted that these changes aim to support people and local businesses who rely on cash transactions. The FCA will work with designated banks and building societies, co-ordinated by the ATM and cash access network Link, to ensure compliance with the new rules. The banks and building societies must evaluate if changes like branch closures or ATM removals are leaving communities without sufficient access to cash services.
Residents, businesses, local representatives, or charities can trigger a review if they believe their community lacks adequate cash access. Charities and local groups can provide a collective perspective on community needs, especially for vulnerable residents and businesses heavily reliant on cash transactions. Requests for assessments can be made to Link or any designated financial firm, such as AIB Group, Natwest, Barclays, and Santander, among others.
The assessment process must be completed within a 12-week period, during which firms must consider existing cash facilities, journey times for individuals and businesses, and the overall impact on the community. Financial firms are expected to address any identified gaps promptly to ensure reasonable access to cash. Possible solutions may involve maintaining bank branches, installing ATMs, establishing banking hubs, or leveraging existing services like the Post Office for banking needs.
The FCA will monitor the implementation of these rules using data to assess their effectiveness in practice. The rules stem from the Financial Services and Markets Act 2023, which aims to safeguard access to cash amid a changing financial landscape with declining cash usage. The FCA’s efforts seek to balance the evolving payment trends while ensuring continued access to cash for those who still rely on it.
Recent initiatives have led to the establishment of more banking hubs across the UK, with a commitment to further expand these services by partnering with industry leaders. The goal is to have 350 banking hubs operational by the end of the Parliament. These measures aim to protect access to cash services for communities and businesses across the country.