The Financial Conduct Authority (FCA) has issued new rules requiring 14 major UK banks and building societies, including Barclays, HSBC, Lloyds, and NatWest, to ensure communities retain access to cash services. From September 18, lenders must assess local gaps in cash access and keep branches or ATMs open until alternatives are provided, though the FCA cannot prevent branch closures.
The move follows a wave of closures: 1,358 bank branches and 4,450 ATMs shut between June 2021 and June 2023. Cash payments fell by 65% from 2015 to 2021 as digital payments rose, but the FCA noted that households earning £15,000 or less rely heavily on cash.
Sheldon Mills, FCA Executive Director, said: 'Three million people continue to rely on cash, even as digital payments become more popular. That’s why we’ve acted quickly to ensure reasonable access to cash withdrawal and deposits is maintained.'
Gaps can be filled via banking hubs, deposit-taking ATMs, or Post Office facilities. Eric Leenders of UK Finance said the industry is committed to maintaining access, while Ross Borkett of Post Office noted record cash handling. Economic Secretary Tulip Siddiq welcomed the rules and reiterated a pledge to roll out 350 banking hubs.
