ATM changes could put increasing pressure on isolated communities
A PROPOSED shake-up to the ATM network could put a greater strain on hundreds of remote areas which already lack access to cash, Which? warns.
The consumer group claims the plans could lead to “mass closures” of free-to-use cash machines.
It said its analysis has identified more than 200 communities with poor ATM provision, or no cash machines at all, which it said might be hardest-hit by proposals that could reduce the network.
Cash machine network Link said it would review the areas identified by Which? and take action if there is found to be inadequate free ATM provision. It said the UK has one of the largest free-to-use ATM networks globally.
Ahead of a final decision on the proposals, Which? analysed data on 70,000 cash machines across the UK.
It found 123 postcode districts did not appear to contain a single ATM, making many people reliant on access in nearby villages or towns.
Meanwhile, a further 116 postcode districts appear to have just one ATM, 37 of which charge a fee, it said.
Examples of postcode districts where ATM provision is particularly low include PE32 (Norfolk), TA7 (Somerset), TN27 (Kent), NR16 (Norfolk) and YO13 (North Yorkshire), Which? said.
Which? money expert Gareth Shaw said: “Reducing the free-touse ATM network would hit consumers who rely on access to cash machines hard.
“These proposals could place a strain on communities across the UK that are already struggling to access the cash they need following mass bank closures.
“The financial regulator must intervene to avoid this situation getting worse.”
The row centres on interchange fees – which fund the free-to-use ATM network. These interchange fees are paid by card issuers such as banks and building societies to ATM operators.
Consultation plans previously outlined by Link include a reduction in interchange rates over the next four years, from around 25p to 20p per withdrawal.
Link’s independent board has previously said that it will protect all free-to-use ATMs which are a kilometre or more from the next nearest free-to-use ATM.
John Howells, chief executive at Link, said: “The UK has one of the largest free-to-use ATM networks anywhere in the world, and the number of free ATMs is at an alltime high and rising.
“We welcome the research produced by Which? and will review all of the areas that it has identified and take action if there is inadequate free ATM provision.
“Link is always looking for ways to improve the network, and extend our financial inclusion programme, which today subsidises ATMs in over 1,000 less-affluent and rural communities.”
The Treasury Committee has raised concerns and has said its overriding priority is that consumers’ ability to access cash does not suffer.
The Payment Systems Regulator has said it is monitoring the situation closely.