New regulations introduced by the Financial Conduct Authority (FCA) today require banks and building societies to assess whether local communities have adequate access to cash services, such as branches and ATMs.
If significant gaps are found, they must take action to ensure these services remain available.
In light of the new regulations, the Post Office has released new research revealing that cash remains crucial for many Brits and businesses.
It found that nearly two-thirds (64%) of Brits and over two-thirds (69%) of local business owners/workers call cash “essential”, with half of respondents saying they use cash at least weekly.
Despite the rise of digital payments, the Post Office said cash transactions are thriving, with Post Office branches handling a record £3.77bn in deposits and withdrawals in July 2024.
Postmistress Ying Shi of Caterham Post Office has seen the impact of bank closures firsthand. She took proactive steps to ensure her community still had access to vital banking services, offering cash deposits, withdrawals, and more. With many elderly and vulnerable individuals relying on cash, the local Post Office has become a lifeline for many.
She has also distributed 10,000 leaflets and introduced herself personally to spread the word about the Post Office banking services and reassure her community that they would not be without access to cash.
“The focus was particularly on reaching elderly and vulnerable customers, many of whom rely on cash, and do not use online banking. The leaflets informed them that they could manage their everyday banking needs at the Post Office, such as cash deposits, withdrawals, and balance checks. We also personally approached local businesses, letting them know they could deposit their daily takings with us,” Ying said.
The Post Office has welcomed the new FCA rules and has highlighted it’s role in providing accessible banking services.
Ross Borkett banking director at Post Office commented: “Ever since we started offering banking services in our branches, we have worked closely with high street banks and building societies to provide banking services and access to cash in communities across the UK, ensuring that no one who relies on cash is left behind. We also work in collaboration with Cash Access UK and the banks to operate Banking Hubs, and we’re delighted to see the recent announcement from HMT and the banks confirming the commitment to 350 hubs and look forward to supporting the roll out of these critical services.”
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