UK Cash Access Laws Show Positive Results
Oct 4, 2024
Britain’s Financial Conduct Authority (FCA) says the launch of access to cash legislation is already yielding results, with local communities enjoying improved cash facilities and more on the way.
The rules, which came into effect on 18 September, hold banks and building societies accountable for ensuring fair access to cash. Biennial checks will take place to review cash provision nationwide, with any organisations found failing in their responsibilities subject to fines.
The FCA has issued a statement saying that since the rules were confirmed, LINK—which manages the UK’s ATM and cash access network—has reassessed the requirements of local areas that have seen change and disruption to banking services. As a result, 15 additional communities will receive banking hubs, six will have an ATM added to their hub, and a further six will receive an automated deposit service or enhanced Post Office.
The FCA adds that ‘existing services will not be removed before replacement services are in place’, which is a direct result of the new regulations.
Sheldon Mills, Executive Director for Consumers and Competition at the FCA, says that while the way people spend is changing, cash remains essential to many. For example, the FCA’s 2022 Financial Lives Survey found that over three million adults use cash for their everyday payments.
The cash access rules support choice in payments, recognising the importance of cash to those who use it on a daily basis, and also those who want the option to use it when benefits such as its privacy, security or resilience are most relevant to them.
We don’t want to stand in the way of change, but we do want to ensure reasonable access for those who continue to rely on cash. Our new rules are already having an impact, protecting vital services for communities across the country.