Low-income households (less than £15,000 a year) along with those having low digital capability or access, have the strongest association with reliance on cash, according to new research by the Financial Conduct Authority (FCA).

So under new rules announced by the FCA, banks and building societies will need to weigh up if local communities lack access to cash services, like branches and ATMs, and plug significant gaps.  

From 18 September 2024, they will need to: 

  • Assess cash access and understand if additional services are needed, when changes are being made to local services.  
  • Respond to local residents, community organisations and representative groups, who will be able to request an assessment of whether there are gaps in local cash access. 
  • Where significant gaps are found, deliver reasonable additional cash services 
  • Keep facilities, including bank branches and ATMs, open until any additional cash services identified are available.  

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said: “Three million people continue to rely on cash, even as digital payments become more popular. And many small businesses still need somewhere to safely deposit their takings each day.  

“That’s why we’ve acted quickly in response to new powers given to us by Parliament to ensure reasonable access to cash withdrawal and deposits is maintained.” 

Gaps in cash access could be filled with a range of measures, including banking hubs, ATMs (including deposit ATMs) and Post Office facilities. The FCA’s powers won’t prevent the closure of bank branches – but will have an impact where branch closures leave significant gaps in local cash access.

The FCA has made changes to the rules it consulted on, including extending the period for banks and building societies to carry out cash access assessments, giving local communities more time to make their case. Firms will also be able to review the provision of identified cash services after two years. 

The banks and building societies that have been designated by the government to deliver this new cash access system include:

  • Barclays Bank UK plc (UK wide)
  • National Westminster Bank plc & The Royal Bank of Scotland plc (NatWest Group) (UK wide)
  • Lloyds Bank plc and Bank of Scotland plc (Lloyds Banking Group) (UK wide)
  • Santander UK plc  (UK wide)
  • HSBC UK Bank plc (UK wide)
  • Nationwide Building Society (UK wide)
  • TSB Bank plc (Great Britain only)
  • Clydesdale Bank plc (Virgin Money) (Great Britain only)
  • The Co-operative Bank plc (Great Britain only)
  • Northern Bank Limited (Northern Ireland only)
  • Bank of Ireland (UK) plc (Northern Ireland only)
  • AIB Group (UK) plc (Northern Ireland only)