How to make sure money does not go extinct in Britain

Yesterday, Natalie Ceeney, impartial chair of the Access to Cash evaluate and chair of Cash Access UK, wrote a bit for This is Money on how making certain Britain does not go cashless has turn out to be a difficulty she is ‘hooked on’.

She revealed the primary a part of what she has learnt previously 5 years and simply why entry to money is so vitally essential.

Today, she talks about money infrastructure and what must be accomplished to assist defend bodily cash in Britain.

Over the previous 12 months, Cash Access UK has opened 29 new Banking Hubs, taking the entire to 31 to this point (on the finish of 2023), with one other 70 already within the pipeline

Our problem 5 years in the past was not simply to determine the issue however to advocate options. It was clear that persevering with to rely in the marketplace to resolve the problem would not work.

The UK had an infrastructure constructed for prime money use, constructed on the rules of market economics and with little regulatory oversight.

There had been potential factors of failure, for instance, if an organization determined to exit the market there was an actual danger that the entire money system might collapse.

If an organization concerned in shifting money across the nation in safe vans, or offering ATMs determined they weren’t making sufficient cash anymore, who would fill the ATMs or take money from retailers?

What would occur if a city was left with no companies in any respect, if all of the banks and ATM suppliers determined to depart? If this mattered to society, then we’d like a change within the mannequin.

Working with the banking business and client teams we set about figuring out methods of offering money entry and deposit companies which met area people wants, however which had been additionally value efficient for business.

In 2021 we arrange eight pilots throughout the UK, trialling a variety of concepts from Post Offices with further companies, cashback over-the-counter in native retailers and the brand new idea of a ‘Banking Hub’.

It was the Banking Hub which emerged as the main success story. We arrange our first two in 2021 in Rochford (Essex) and Cambuslang (Lanarkshire) (that are nonetheless open right this moment), cities which had been chosen as each cities had misplaced their remaining financial institution department, and the place there was a robust area people calling for motion.

For those that do not know, banking hubs are shared areas the place clients of practically all banks can do primary banking and money companies.

They are positioned someplace very accessible within the native city, normally on the excessive avenue.

They have a counter service, staffed by an actual (and useful) individual to assist individuals withdraw money, make deposits, verify their stability, pay in cheques and different primary companies – which the Post Office run.

Alongside this counter, there are group bankers from all the main banks throughout the Hub, who go to on alternating days, who may help clients with extra technical or financial institution particular questions, reminiscent of energy of legal professional or establishing standing orders.

In the pilots the brand new banking hubs weren’t simply common and busy, however they introduced life again to these excessive streets.

After the pilots concluded, on the finish of 2021, the banking business collectively agreed to rolling them out.

The banks agreed that any location that misplaced its final department would independently be assessed by LINK, who might advocate new companies together with ATMs or banking hubs.

Communities which have traditionally misplaced their final department might (and nonetheless can) additionally request a evaluate. Over the course of 2022 we labored via the entire element, in order that we might get this new strategy working.

This was an enormous achievement, and only a 12 months in the past, in December 2022, we arrange a brand new firm to arrange and run the brand new Banking Hubs, known as Cash Access UK.

It is a non-profit organisation, absolutely funded by the banks. It’s run by a group who mix expertise in banking with expertise in working companies for communities, and who perceive the wants of extra weak shoppers.

Over the previous 12 months, Cash Access UK has opened 29 new Banking Hubs, taking the entire to 31 to this point (on the finish of 2023). But there are one other 70 already within the pipeline, and with round two Hubs opening per week over 2024.

We can be supporting communities up and down the UK who want money and banking companies. 

Banking hubs are being created to excessive requirements, usually taking an previous, unloved store within the centre of the excessive avenue, and refitting it sensitively, to excessive environmental requirements however with accessibility at its coronary heart.

The Banking hubs is perhaps new, however they’re already proving extremely popular, with over 90 per cent of their clients saying that they might advocate them to others.

And not like the ‘final department on the town’, they serve just about everybody, open to people and small companies for the entire main banks.

In parallel, with cross get together assist, the federal government quietly handed laws in June 2023 turning this from a voluntary initiative to 1 which is a requirement in regulation.

Regulators now have energy to set the standards for which communities get money companies, and what these companies want to offer.

The Financial Conduct Authority, the regulator, is at the moment consulting publicly on the element of those guidelines, with their session closing in February 2024.

The new guidelines ought to come into drive in the summertime of 2024. These new guidelines will strengthen the voluntary preparations at the moment in drive, however the present preparations are already sturdy, and dealing nicely.

Every time a financial institution department now closes, there’s an impartial evaluate by LINK to find out whether or not a banking hub or different service is required.

And anybody in a group with no financial institution department can ask LINK to evaluate their group’s wants by finishing a quite simple on-line type.

The banks have additionally agreed to not shut a department in a city the place a hub is coming till it’s prepared and open.

So, 5 years on, is the job accomplished?

We’ve made large progress, however there’s much more to do. Aside from rolling out the hubs as shortly as we are able to, I’d spotlight two key points which I nonetheless do not feel we have grasped.

I’d like to see the identical focus as we have had on money to serving to everybody have the selection to make use of digital companies. I do imagine in fee selection, and do not imagine that we must always abolish money, however utilizing money ought to be a selection and never only a necessity for thousands and thousands.

So now that we’re lastly all getting behind defending money on our excessive avenue, and with a banking hub prone to be coming to a city close to you someday quickly, how about us all placing comparable ranges of effort into serving to everybody take part in our rising digital society? After all, everybody will profit.