Legislation passed to protect access to cash

New legislation by the UK government has received Royal Assent which ensures a minimum level of free access to cash, ensuring people can continue to conveniently withdraw and deposit cash, following the rapid rate of bank branch and ATM closures.

Under the Financial Services and Markets Act 2023, The Financial Conduct Authority (FCA) will be granted powers to stop banks and building societies from closing cash access services if there is no suitable alternative within reasonable distance. The UK Government expects details to be confirmed in a policy statement ‘no later than the end of September’.

SGF has recently provided evidence to the UK Government’s Economic Secretary and the Chair of the Scottish Affairs committee, in order to highlight the importance of this issue for members.

Throughout June, SGF has hosted an online survey of our retail members regarding access to cash. See some of the key findings below:

• 23% of respondents highlighted that the closest free to use ATM is outside of walking distance to their store.

• 86% of those surveyed who offer free to use access to cash, reported that their customers find the service either ‘very valuable’ or ‘extremely valuable’.

• 42% of stores report that at least half of customers still use cash as their primary payment method.

• 73% of retailers, who currently offer free access to cash, are either ‘concerned’ of ‘very concerned’ that this service may be replaced with a charged system.

• 85% of respondents believe that moving to a charged system would have a negative impact on customer relations. While 86% of those that already have moved to a charged system, confirm this to be the case.

• 71% of respondents believe that the number of free to use ATMs in their area has declined in the past five years.