News
Barclays does about face, allows customers to withdraw cash at UK Post Offices
October 24, 2019
Earlier this month, Barclays created a stir when it announced its debit card holders could deposit money, but not withdraw cash at U.K. Post Offices. Under considerable public pressure, the U.K. lender has now reversed that decision.
In an announcement today, Barclays Group CEO Jes Staley said:
"We have listened very carefully to points that have been made to us by ministers in the government, by MPs, and by interested charities and consumer advocates.
"Ultimately we have been persuaded to rethink our proposals by the argument that our full participation in the Post Office Banking Framework is crucial at this point to the viability of the Post Office network.
"Whilst we have concerns regarding the sustainability of relying on this model in the longer term, and want to work with government and others to address the problems inherent in it, we recognise that the Post Office is a network valued by many communities in the U.K. today.
"So we have amended our position, and will now maintain a full service proposition in the Post Office for our customers, including cash withdrawals using a debit card, for the next three years."
Shrinking cash infrastructure
In the U.K., many consumers rely on the country's 11,500 post offices for basic banking functions and to access cash. Post offices have become increasingly important in the country, as the number of fee-free ATMs has dropped off considerably.
When the Post Office recently announced a three-year agreement with 28 banks and building societies, which allowed for postmasters and post mistresses to be paid more to take in and dispense cash, Barclays was the only one to omit cash withdrawals from its part of the agreement.
Natalie Ceeney, chair of the Access to Cash Review, who recently commented that the U.K.'s cash infrastructure was at a "tipping point," praised the bank's change of heart.
"I'm very pleased that Barclays have listened, and acted on the feedback," she said in a tweet.
Completely agree Martin. It takes bravery to admit when you've got something wrong. I'm very pleased that @Barclays have listened, and acted on the feedback. https://t.co/MDRxxkWYSj
— natalie ceeney (@natceeney) October 24, 2019
