Most people have ‘reasonable access to cash,’ finds FCA

Most people have reasonable access to cash through a combination of bank, building society, or post office branches and ATMs, according to new research from the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR.)

The authorities estimate that 95.4 per cent of the UK population are within 2km of a free cash access point and 99.7 per cent are within 5 km. Although the FCA admits there are still some pockets of society that do not have sufficient access.

Consumers’ ability to access banking services and cash can be affected when banks and ATM providers make decisions to close branches and cash machines.

In September 2020 the FCA published guidance on how it expects firms to approach branch and ATMs closures or conversions to make sure their customers are treated fairly. In May 2021 the FCA and PSR published a joint statement on their work to date and the FCA also reaffirmed its expectations for industry at the Which? Cash Summit.

The PSR recently published its second annual review of Specific Direction 8 (SD8) which ensures LINK does all it can to make free-to-use ATMs available for UK consumers.

It has decided SD8 should remain in place until it expires in January 2022. The PSR will continue to monitor LINK’s commitment and how it is being met.

The PSR is currently considering whether to issue a new direction to replace SD8 when it expires.  

Since then, the Treasury has launched a consultation on establishing geographic requirements for the provision of cash withdrawal and deposit facilities, the designation of firms for meeting these requirements, and establishing further regulatory oversight of cash service provision.

“Around 5 million adults say they still rely on cash, and we know that where access is removed, it can affect the most vulnerable in society,” said Sheldon Mills, executive director, consumers and competition at the FCA. “This is why we have intervened in the past to provide banks with guidance on what to consider when closing branches.”

Mills said that while most of the UK population have reasonable access to cash, there are still pockets of consumers, some displaying characteristics of vulnerability, who do not have sufficient access to cash.

“We expect firms to help protect access to cash and wider banking services in ways that meet consumers’ needs, and we continue to engage with firms closing their branches, to ensure that they treat their customers fairly,” he added. “We will also review over the coming months how we can strengthen our guidance to help protect reasonable access to cash and banking services.”

The FCA and the PSR said they will continue to work with Government to prepare for legislation, and with industry and other stakeholders on cash access issues. The FCA intends to update on the next steps on its work in Q4 this year.

    Share Story:

Recent Stories


Safeguarding economies: DNFBPs' role in AML and CTF compliance explained
Join FStech editor Jonathan Easton, NICE Actimize's Adam McLaughlin and Graham Mackenzie of the Law Society of Scotland as they look at the role Designated Non-Financial Businesses and Professions (DNFBPs) play in the financial sector, and the challenges they face in complying with anti-money laundering and counter-terrorist financing regulations.

Ransomware and beyond: Enhancing cyber threat awareness in the financial sector
Join FStech editor Jonathan Easton and Proofpoint cybersecurity strategist Matt Cooke as they discuss the findings of the State of the Phish 2023 report, diving into key topics such as awareness of cyber threats, the sophisticated techniques being used by criminals to target the financial sector, and how financial institutions can take a proactive approach to educating both their employees and their customers.

Click here to read the 2023 State of the Phish report from Proofpoint.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.

Future of Planning, Budgeting, Forecasting, and Reporting
Sage Intacct is excited to present FSN The Modern Finance Forum’s “Future of Planning, Budgeting, Forecasting, and Reporting Global Survey 2022” results. With participation from 450 companies around the globe, the survey results highlight how organisations are developing their core financial processes by 2030.