News
'Access to Cash' pilot program to help those in need
September 25, 2020
In the next few weeks, nine U.K. communities in poor or vulnerable areas will be part of a pilot program to offer a range of possible cash access solutions known as the Access to Cash project. The goal is to provide the poor, unbanked and underbanked with access to cash, according to a Finextra report.
Among the approaches being piloted, are 'banking hubs' in dedicated retail spaces that can combine cash-transaction facilities like those found in a post office, with access to community banking services offered by street retailers. In one community, a financial hub space will be set up in a local church and offer support from major banks, advice on curbing debt and support for financial issues.
Existing post office branches within the communities will be restructured and refurbished, and cash services streamlined to make it easier to withdraw and deposit cash quickly and safely. And pop-up post offices will give small communities access to basic banking services over a counter in an existing small shop.
There is also a focus to increase the number of businesses offering cashback, in some cases, without requiring people to make purchases.
"The rapid switch to digital is threatening the viability of today's cash infrastructure. This can lead to consumers left without cash access or forced to leave their own village or town to get cash elsewhere, often at significant inconvenience and cost," Natalie Ceeney, chairperson for the Community Access to Cash pilot program, told the news outlet. "It's critical that we find ways to protect the viability of cash, for consumers and communities alike. These pilots are designed to find sustainable ways to keep cash viable locally, which, if successful, can then be rolled out more widely."
The government has already committed to legislate to protect cash, and the financial services regulators are working closely with banks to identify practical next steps.
