UK Saw a ‘Record Summer of Cash’
Sep 30, 2024
The Post Office—a key provider of banking services across Britain—has reported a record summer of cash, which is supporting individuals managing tight budgets and businesses struggling to survive ‘a volatile trading environment’.
The BBC reports the Post Office network handled more than £3.7 billion (around $4.8 billion) in cash transactions in July alone, comprising customer deposits and withdrawals. This record high beat previous peaks recorded in April and May 2024, and December 2023.
Mairi Wingate, Postmistress of Barton-upon-Humber, says there are many reasons people choose cash, whether they’re settling smaller or larger transactions, but in the current economic climate, it is valued especially highly as an aid to budgeting.
It can range from people wanting £10 to go to the local hairdressers to go and get their hair done [right] up to £300 or £400, and it’s just budgeting for the weekly shopping and bills. They know exactly what they've got and they can't overspend what they haven't got.
The Standard quotes Ross Borkett, Banking Director at the Post Office, as saying demand for cash remains buoyant. Post Offices are increasingly taking on banking services previously provided by bank branches that continue to close across the country, leading to ever-higher amounts of physical money passing through the network. Borkett is optimistic that the recently-introduced Financial Conduct Authority regulations will improve access to cash and ‘certainty around its future.’
Our figures indicate that demand for cash is as strong as ever as people rely on cash to budget and businesses rely on it to survive a volatile trading environment. We are pleased that the Financial Conduct Authority have recently published new access-to-cash regulations to give both consumers and businesses more certainty around the future of cash.