Skip to content
Search

Latest Stories

FCA mandates banks to ensure cash access in local communities

Study revealed that the volume of cash payments in the country fell by 65 per cent between 2015 and 2021

FCA mandates banks to ensure cash access in local communities

BANKS and building societies in the UK will soon be required to ensure that local communities have adequate access to cash services, following new regulations announced by the Financial Conduct Authority (FCA) on Tuesday (23).

These rules, effective from 18 September, mandate that financial institutions assess and address significant gaps in cash access, particularly where branches and ATMs are closing.


A recent research by the regulator revealed that the volume of cash payments in the country fell by 65 per cent between 2015 and 2021 due to innovation and changing consumer behaviour.

Concurrently, the number of bank branches and ATMs has significantly decreased, with 1,358 branches and 4,450 ATMs closing in the two years leading up to June 2023. This reduction in access to cash services adversely impacts those who rely on cash, prompting parliament to grant the FCA powers to ensure reasonable provision of cash deposit and withdrawal services.

Under the new rules, banks must evaluate the need for additional cash services in the community when making changes to local services. They must also respond to requests from local residents, community organisations, and representative groups who can request assessments to identify gaps in cash access.

If significant gaps are found, banks are required to provide reasonable additional cash services. Furthermore, banks must keep current facilities, such as branches and ATMs, operational until new services are available.

Sheldon Mills, executive director of consumers and competition at FCA, stressed the ongoing need for cash access.

Mills said, “Three million people continue to rely on cash, even as digital payments become more popular. Many small businesses still need somewhere to safely deposit their takings each day. That’s why we’ve acted quickly in response to new powers given to us by Parliament to ensure reasonable access to cash withdrawal and deposits is maintained.”

To address gaps in cash access, various solutions will be implemented, including banking hubs, ATMs (including those accepting deposits), and Post Office facilities.

The government has designated 14 banks and building societies to implement this new cash access system. The FCA has adjusted the original rules to give banks more time to conduct cash access assessments and to allow local communities more time to present their case. Additionally, banks will be able to review the provision of identified cash services after two years.

Recent research published by the FCA found out that those most reliant on cash are typically from low-income households (earning less than £15,000 annually) and those with limited digital capability or access.

A survey revealed that six per cent of UK adults depend on cash for most or all of their purchases, with higher reliance among those who are digitally excluded, have low incomes, are unemployed, or are in poor health.

Additionally, low-income households and non-employment status also increase cash reliance.

More For You

5 best wireless headphones in 2025:Top picks for every budget in the UK

Discover the top wireless headphones of 2025 for every lifestyle and budget

iStock

5 best wireless headphones in 2025:Top picks for every budget in the UK

Wireless headphones are no longer just a luxury; they’re a lifestyle essential. Whether you’re blasting your favourite playlist on your morning commute across London, tuning out distractions while working from home, or hitting the gym, the right pair can make all the difference. But with countless options flooding the market, how do you choose? Don’t worry—we’ve done the hard work for you. From premium noise-cancelling powerhouses to wallet-friendly gems, here are the five best wireless headphones to elevate your audio game in 2025. Here’s our list:

1. Bowers & Wilkins Px8 (2025 Edition): A standout choice for UK audiophiles, the Bowers & Wilkins Px8 combines British craftsmanship with cutting-edge technology. Known for their luxurious design and exceptional sound quality, these over-ear headphones feature enhanced noise cancellation and up to 35 hours of battery life. Whether you’re navigating the Tube or enjoying a quiet evening at home, the Px8 delivers a rich, immersive listening experience.

Keep ReadingShow less
Bank-of-England-Getty
A general view of the Bank of England on December 19, 2024 in London. (Photo credit: Getty Images)

Bank of England set to reduce interest rate amid weak growth

THE BANK OF ENGLAND is expected to cut its key interest rate on Thursday as it seeks to support weak economic growth, even though inflation remains above target.

Analysts predict the central bank will reduce borrowing costs by a quarter point to 4.50 per cent at its first rate meeting of the year.

Keep ReadingShow less
OYO to boost UK presence with £50m investment

OYO operates more than 200 budget hotels across 65 UK cities

OYO to boost UK presence with £50m investment

OYO, a hospitality technology company, aims to invest £50 million in the UK over three years to expand its premium hotel portfolio, supporting 1,000 jobs in the hospitality sector.

The company is upgrading its UK portfolio by acquiring premium inventory and securing longterm leasehold and management contracts. OYO is in advanced talks with large hotel chains and real estate firms for asset management deals, the company said in a statement released to Indian media.

Keep ReadingShow less
India and Britain brace for impact of Trump tariff threat

India lowers duties on high-end motorcycles to 30 per cent

India and Britain brace for impact of Trump tariff threat

INDIA does not want to give any signal that it is protectionist, the top bureaucrat in the finance ministry said, after slashing import duties on high-end motorcycles, amid US president Donald Trump’s moves on tariffs.

Trump has ignited a trade war with sweeping tariffs on Canada, Mexico and China. None were aimed at India, although Trump had called it a tariff abuser during his election campaign last year.

Keep ReadingShow less
Diageo-jw-reuters

The global beverage company is known for brands like Johnnie Walker. (Photo: Reuters)

Diageo faces challenges in life after Ivan Menezes

DIAGEO, the global beverage company known for brands like Johnnie Walker and Guinness, has encountered significant challenges following the death of CEO Sir Ivan Menezes in June 2023. Menezes, who had led the company since 2013, was succeeded by Debra Crew.

Under Crew's leadership, Diageo has faced a profits warning and adverse global consumer trends. The company's shares have declined nearly 30 per cent since her appointment.

Keep ReadingShow less