Credit, Collections & Insolvency News
A scheme designed to ensure people can maintain free access to cash could see banks share branches for the first time.
The Community Access to Cash Pilot will test new subsidised ATMs and local cash deposit centres for retailers. Eight locations across the UK, including an army barracks, have been chosen for trials to help solve problems with access to cash.
Small towns and villages identified as remote communities have been selected:
Banks have been persuaded to pay for the pilots, trying out ideas like shared branches, more cashback in shops, as well as better bus services to allow people to visit surviving branches.
Analysis has shown that around 2 million people still mostly use cash in their day-to-day lives.
Natalie Ceeney, Chair, Community Access to Cash Pilot, said “We’ve selected communities which all have a cash need, but which face different challenges. Some locations may need an ATM or a place for retailers to deposit cash locally, others may look for a shared bank branch or a means to improve digital skills. Our aim is both to support communities right now, and also to learn lessons for sustainable solutions which can be used more widely across the UK, particularly as the government considers legislation to support the cash infrastructure.”
John Glen, Economic Secretary to the Treasury and City Minister, said “I welcome today’s announcement of the locations of the pilots, which will help inform the most effective ways of protecting access to cash at the local level, at a time when our communities mean more to us than ever. I look forward to seeing the progress made by the pilots, as the government develops legislation to protect access to cash, and would like to thank Natalie Ceeney CBE for her work on this important issue.”
Responding to the announcement, Stephen Jones, CEO of UK Finance, said “The announcement of the pilot areas for this important industry-backed initiative is a significant milestone. While our latest data shows that people are increasingly choosing to pay digitally, the banking and finance industry is committed to ensuring that access to cash remains free and widely accessible to those who need it.”
“The impact of the Covid-19 lockdown in recent months has shown the importance of continuing to do so, and with retailers and businesses reopening their stores this week the sector is playing a central role in helping people to pay for the goods and services they need using the method of their choice.”