Payments

Can we get a vote for protecting cash?

One often ignored issue by politicians is the loss of in-person banking services. Politicians should address voters’ concerns about the decline in in-person access to cash and financial services.

Photo: Adobe Stock

June 28, 2024 by Mark Aldred — Head of Sales, Auriga

The date for the U.K. General Election is set for July 4. One often ignored issue by politicians is the loss of in-person banking services. Politicians should address voters' concerns about the decline in in-person access to cash and financial services.

There are bigger issues being debated in the U.K. election but access to cash and financial services within local communities is a major issue that is being promoted by well-organized campaigners.

Consumer rights organization Which monitors the closure of bank branches by the major UK banks and recently released data that showed 30 parliamentary constituencies would be branch-less by the end of 2024. By matching the loss of access to in-person banking to the contest to a community's next member of parliament (MP,) Which is making a powerful case for the issue to be on agenda.

Coincidentally, the U.K, ATM operator Link has released new insights into consumer attitudes to cash which comparative data between now and when the UK last elected a new national government in 2019. These led to some headlines about UK consumers expected to be living in a cashless society within a few years. However, the research showed how much U.K. voters want to preserve access to cash, according to an article in the EPI.

"More than half of people surveyed by Link don't expect a cashless society in their lifetime and 85% said they carried cash at least some of the time and 71% did so daily. Over five years, there has been a change, but it is not as extreme as you might expect. For example, the number of people carrying cash has reduced by 11% and only 7% more have formed the view that there will be a cashless society," Mark Aldred, VP of international sales, Auriga, said in the article.

In addition it can be no coincidence that the reported 33% reduction is ATM usage since the last election is mirrored by the reduction in the number of U.K.'s ATMs by 30% and branches by around a half in the same period.

So, what should consumers be demanding from election candidates about policies on access to cash and in-person financial services?

Firstly, do not accept a response that a trend to cashless society is inevitable. It simply is not. While banks claim branches need to be shut down because they are uneconomic to run, their profits do not seem to support this idea.

The fact is that there is available proven digital teller software and hardware that can reduce the running costs of a branch significantly and allow them to be kept open.

Secondly, ask what they will do about the alternative options like the Post Office Banking hubs. These have been rolling at much slower pace than the closure of bank branches. Even when open, the service does not match the lost branch service. There is no guarantee that you can talk to your bank's banking professional when you need to. Voters who are being told these hubs are the answer will be demanding improvements once they experience how restrictive the service is.

Thirdly, ask if the candidate supports new access to cash regulations to avoid services being cut without proper consultation.

Some U.K. politicians may be unhappy considering ideas from Europe or even worse Belgium. For example, the biggest banks in Belgium have created an ATM pooling initiative called Batopin that will run all their ATMs and is investing in new machines and locations to put ATMs closer to where people need them. In Spain, banks have agreed to recruit more advisers to serve vulnerable customers like the elderly who prefer in-person banking.

All the elections held this year will address a range of big issues. In U.K. for one, assuring people can access financial services in their communities should at least be debated.

About Mark Aldred

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Auriga

Auriga is a top international software solutions company, specialized in end-to-end systems that integrate the various delivery channels used in retail and internet banking.

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