Full record of 14 banks which have new money guidelines from immediately

From today (September 18), local communities will gain new powers that will allow people and organisations to demand an audit to identify any deficiencies in access to cash locally. From the 18th of September onwards, this stipulation can be invoked by a broad spectrum of interested parties, ranging from individuals and collectives to organisations and local enterprises.

Emad Aladhal, the Financial Conduct Authoritys (FCA) director of retail banking, expressed optimism about the potential benefits of the forthcoming changes for those dependent on cash transactions, including smaller businesses. He explained: “This is about making sure that we retain an ability to deposit money and an ability to withdraw money in local communities.”

Mr Aladhal affirmed the FCA’s commitment to ensuring that particular banks and building societies, working together with ATM and cash network Link, deliver on these alterations. According to the revamp, financial institutions need to evaluate if modifications to local services, such as shutting down branches or ATMs, result in inadequate cash services for nearby communities.

Banks and building societies are required to pay heed to the needs of local populations, retailers, and commerce to ensure that any implemented changes do not hinder reasonable cash access. A call for evaluation could also rise from concerns within the communitya sentiment shared by residents, commercial entities, civic leaders, or charitable bodiesregarding insufficient services for depositing or withdrawing money.

Charities and local groups will have the opportunity to present a collective view of community needs, including those of the most vulnerable residents and businesses that heavily depend on cash. Requests can be made to Link, the oversight body, or any designated financial firm.

Designated banks include: AIB Group (UK); NatWest/RBS/Ulster Bank; Bank of Ireland (UK); Bank of Scotland/Halifax/Lloyds; Nationwide Building Society; Barclays; Northern Bank (Danske); Clydesdale Bank/Virgin Money; Santander UK; HSBC UK; the Co-operative Bank; and TSB.

These firms will be required to identify and address any gaps, or potential gaps, in cash access provision that significantly affect consumers and businesses. Mr Aladhal gave an example where someone running a charity might have to travel a significant distance to deposit money raised for their cause.

“Our rules are about ensuring that the banks and the coordinating body, being Link, listen to that,” he stated. The assessment must be completed within a 12-week period.

Mr Aladhal explained: “They will need to consider the existing facilities to deposit cash, the existing facilities to withdraw cash, they will need to consider things like the journey times of individuals and businesses as well as the reasonableness of that travel time and the cost.”

“So, it’s not about looking at a map and going as the crow flies, it’s actually about: Is there public transport? How expensive is it for people to use it? How difficult is it? Et cetera.”

Financial firms will re-engage with communities after a 12-week process to present their plans, allowing for feedback, as detailed by Mr Aladhal. He stated: “If they identify a gap, our expectation is that they need to fill it as reasonably quickly as possible.”

Options to bridge any gaps could include keeping a bank branch open, setting up an ATM, starting a shared banking hub, or using Post Office services which already has a banking agreement in place.

Mr Aladhal emphasised the importance of tailored solutions, saying firms must ensure “whatever is suggested is really catering for that community’s need” and that assessments consider all community needs.

The Financial Conduct Authority (FCA) will monitor the effectiveness of these measures using data, including their Financial Lives Survey results which highlighted that over 6% of adults leaned heavily on cash for transactions in the 12 months leading up to May 2022.

The situation is more prevalent among vulnerable populations, such as those who are digitally excluded, in poor health, or have low incomes. Discussing the trend, Sheldon Mills, executive director for consumers and competition at the FCA, commented: “The way we spend money is changing, and far fewer of us use cash day-to-day.”

“We don’t want to stand in the way of change, but we do want to ensure reasonable access for those who continue to rely on cash. Our new rules are already having an impact, protecting vital services for communities across the country.”

The Financial Services and Markets Act 2023 set out Parliament’s intention to protect access to cash. The regulator’s powers, given to it by Parliament to ensure that reasonable access to cash withdrawal and deposits is maintained, will not prevent bank branches closing.

But the powers will have an impact where branch closures would leave significant gaps in local cash access. Thousands of bank branches have disappeared from high streets over the past decade. Consumer group Which?said in May that more than 6,000 bank branches had closed since 2015.

In August, HSBC promised it would not announce any new closures of its bank branches until at least 2026. Link said a further 15 new banking hubs have been confirmed as a result of the new rules, taking the total so far to 163, with 81 already open and more to follow.

Adrian Roberts, deputy chief executive of Link, said: “What’s key is that as a result of the new rules, Link will be able to recommend more banking hubs and alongside free-to-use ATMs and post offices, access to cash will be protected for many years to come.”

Cat Farrow, chief customer officer, Cash Access UK, said: “We’re delighted to see this commitment to bringing more banking hubs to communities across the UK.”

The Government has recently hosted a roundtable discussion with banking industry leaders, promising to deliver 230 hubs by the end of 2025 and an additional 120 by the end of the Parliament. This means that a total of 350 banking hubs should be operational by the end of the Parliament.