Access to cash ‘must be protected’ by regulator
AREGULATOR who will protect access to cash is needed as consumers face the double blow of ATMs and banks closing at an “alarming” rate, according to Which?
The consumer group said figures show that cashpoints disappeared at a rate of 488 per month between June and December last year – with more than 250 free-to-use machines also closing monthly.
It said it is also concerned about bank closures leaving communities struggling, with 3,300 UK branches closing their doors since 2015.
“Urgent regulatory action” to manage these changes and intervene when necessary to protect cash as a payment method is needed, Which? said.
It warned that people will be shut out of paying for goods and services if the UK is allowed to drift into a cashless society.
Despite the rise of digital banking and contactless payments, Which? previously found nearly three-quarters (73 per cent) of people still use cash frequently.
The consumer group is highlighting the issue in a campaign called Freedom to pay. Our way.
The campaign calls for the Government to appoint a regulator with sole responsibility for the cash infrastructure to ensure consumers and businesses can continue accessing cash.
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Which?
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has found the UK has lost two-thirds of its branch network in the last 30 years.
And Which? said that IT glitches – including the high-profile problems last year suffered by TSB – have caused chaos for consumers.
Jenni Allen, managing director, Which? Money, said: “We have serious concerns that the alarming rate of cashpoint and bank branch closures risks leaving people facing an uphill battle to access the cash they rely on.
“Cash is also a vital back-up as fallible digital payments grow in popu- larity – so the Government must appoint a regulator to oversee these changes and ensure no-one is excluded and left struggling to go about their daily lives.”
Concerns about ATM closures were heightened last year when a row broke out about changes to the future funding of cashpoints.
ATM network Link recently said cash machine operators are to be given “super premiums” to help keep ATMs in remote areas open from April. Around 1,000 cash machines will initially be eligible and the enhanced premiums will vary in size depending on how well a particular ATM is used.
A spokesman for trade association UK Finance said: “Bank branches play an important role in the life of local communities and decisions to close them are never taken lightly.
“Research shows that consumers are increasingly choosing newer ways to help them with their banking, using technology to check balances and make payments – or even speak to your bank 24/7. But technology is not for everyone and maintaining access to cash is vital to ensure no customer is left behind.
“This is why all the high street banks have arranged for everyday banking services to be available through 11,500 Post Offices across the country and mobile bank branches to reach more rural communities, while investing in the existing ATM network to ensure continuity of service when ATMs are no longer commercially viable to operate.”
A spokesman for the Payment Systems Regulator (PSR) said: “We know that cash is still important for large numbers of people, even though electronic payments are growing in popularity.
“We are holding Link to account for its commitment to preserve the geographic spread of FTU (free-touse) ATMs; we’re satisfied so far with the way Link has responded to our specific direction we gave it in October 2018, but we’ll be continuing to check on the effectiveness of its measures in ensuring widespread free access to cash.”