How 1 in 5 ATMs has disappeared in just four years

SCOTLAND is moving closer to becoming a cashless society as almost a fifth of the country’s ATMs have been shut down in four years.

The soaring number of contactless transactions has seen 18.3 per cent of cash machines axed between 2018 and 2022.

But in some places, more than a third of ATMs have disappeared. South Aberdeenshire recorded the most closures at 36, equivalent to 36 per cent of machines.

This was followed by West Aberdeenshire, which saw 30 per cent of its cash points vanish.

Meanwhile, the Western Isles was named the place with least access to ATMs, with just two cash points for every 10,000 residents.

The figures – from financial services company CMC Markets – have sparked warnings from charities about the impact on older people and those in digital poverty.

Adam Stachura, head of policy and communications at Age Scotland, said: ‘Bank closures and vanishing ATMs often hit older customers hardest, leaving them cut off from vital services and making it harder for them to manage and budget their money.

‘Spending their cash also becomes harder as businesses then move away from accepting it. It is important to remember that more than 100,000 adults in Scotland don’t have bank accounts so wide-scale acceptance of cash is essential to them. People who are most reliant on free-to-use ATMs tend to be older or on low incomes and may not find it easy to travel further than their branch to do their banking due to mobility restrictions.

‘It’s vital for banks to remember that half a million older people in Scotland do not have access to the internet or have smart phones, so digital solutions aren’t always a feasible option.

‘Banks shouldn’t isolate and digitally exclude their older, and loyal, customers but consider the needs of everyone who has an account with them.’

Scottish Conservative MP for Dumfriesshire, Clydesdale and Tweeddale David Mundell said those in rural areas are also being left behind by dwindling numbers of ATMs. Mr Mundell said: ‘With unreliable broadband connections, internet and mobile banking is not a viable alternative for my constituents who have been badly hit by bank closures.

‘That has been compounded by banks removing ATMs at the same time’.

Cash machine usage was declining before Covid-19, but has been

‘See which areas will go cashless’

exacerbated by the pandemic, according to CMC Markets.

Michael Hewson, chief market analyst at CMC Markets, said: ‘During the pandemic, consumers were reminded that using digital payment options over cash would allow them to pay for goods and services in a safer manner. Many found this to be more convenient than withdrawing cash.

‘By analysing the rate at which ATMs have closed over the past four years, we were able to see which areas are likely to go cashless first.’