Calls for FCA to secure older people’s access to cash

The letter asks the FCA to consider introducing guidance to force banks and building societies to offer further support for their older customers at this time, and to share the best practice that has emerged so far.

The charity has welcomed the speedy and innovative action that many banks have already taken to help their older customers by, for example, proactively contacting customers, establishing helplines, sending cash through the post and making it easier for people to get cash on older people’s behalf.

However, many older people rely on cash as their default way of paying for a range of essential goods and services and the Charity says this group needs more help. It warns that the measures already introduced won’t be of much use to those older people who struggle with the new processes; for example those who have a health condition that limits their ability to talk to their bank. Failure to put in place an easy method for customers to receive cash would leave some of the most vulnerable people unable to pay for essential supplies.

The letter also asks the FCA to ensure that banks do not discourage older people from contacting them when this is necessary for them.  Much of the messaging from banks, for example in national TV advertising campaigns, is encouraging customers to get in touch via their websites, creating the impression for many older people that they can’t call their bank or visit a branch. The FCA needs to ensure that customer facing communications are clear that people unwilling or unable to contact their bank electronically are still welcome to do so by other means.

The latest figures show that a third (31%) of the 70 plus population in England, the equivalent of 2.3 million people, live in a household without access to the internet, while 43% of this cohort, the equivalent of 3.2 million people, have never used the internet at home or anywhere else. They are highly unlikely to do so now and they must not be forgotten or left behind.

Caroline Abrahams, Charity Director at Age UK, said “Many older people are particularly reliant on cash and so ensuring that cash supplies are uninterrupted is particularly important to them as lockdown continues. Should there be any problems, contingency plans must ensure that provision is made for people with mobility issues and those living in isolated rural areas to ensure they can continue to access their cash.”

“It’s deeply worrying that some older people are telling us that their cash supplies have run out and they are worried about how they will pay for their shopping, and are concerned their supplies of essentials will run out soon if they have no means of paying for more.”

“While we welcome the initiatives that companies are undertaking they don’t solve the problem for all older people. We are concerned that the most vulnerable will be the hardest hit as they will be unable to use the new services that have been established.  It is crucial that every bank does everything it reasonably can to help these customers, including going beyond the new services they have already established.”

“We hope all businesses can continue to look at how they can assist older people who depend on cash to go about their daily lives. The FCA can play an important role too by monitoring what they are doing, spreading best practice and introducing new guidance to ensure that vulnerable consumers receive an appropriate level of assistance if they need it.”

“We welcome the actions businesses and the FCA have already taken to help customers access cash these last few weeks but more needs to be done, supported by clear direction from the FCA, so every older person is confident they can get the cash they need to pay their way.”

“Making sure that older people have the coins and banknotes they need to keep spending is surely in the best interests of businesses and the economy too, so the sooner a really comprehensive range of measures is in place to assure this the better for everyone.”