New regulations are soon to come into force that will impact all UK bank users in efforts to maintain adequate access to cash. The Financial Conduct Authority (FCA) is implementing its new Access to Cash policy applying to 14 major banks including Lloyds, NatWest and Barclays.
This mandates banks to ensure proper provision of cash machines and other cash access methods for Britons. The new rules will compel 14 major banks identified by the FCA, including Lloyds, NatWest and Barclays, to maintain their cash services, especially when shutting branches.
These banking behemoths will need to evaluate gaps in local cash provision, considering where their customers reside and where people would be significantly affected by the loss of their local branch. Bank chiefs will have to establish adequate services before they shut down an existing cash facility, and this must occur “without unreasonable delay where assessments find there will be a significant gap in local provision”.
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The 14 banks who have to comply with the new regulations include:
- AIB Group (UK) plc
- Bank of Ireland (UK) plc
- Bank of Scotland plc (including Halifax)
- Clydesdale Bank plc (Virgin Money)
- HSBC UK Bank plc
- Lloyds Bank plc
- National Westminster Bank plc (including Ulster Bank)
- Nationwide Building Society
- Northern Bank Limited (Danske)
- Santander UK plc
- The Co-operative Bank plc
- Lloyds Bank plc
- The Royal Bank of Scotland plc
- TSB Bank plc.
The UK lost a total of 1,358 banks and building society branches in the two years to June 2023, according to FCA figures. Another 69 branches are closing in September, including branches of Halifax, Royal Bank of Scotland (RBS), Lloyds, NatWest and Barclays.
The new regulations will also necessitate the banks to “clearly communicate to consumers and businesses where they can access cash services, how to make a cash access request and how to request an assessment review”. The forthcoming FCA policy was brought up in Parliament this week, following a query from Conservative MP Sir John Hayes about maintaining cashpoints in rural areas.
Treasury minister, Tulip Siddiq, responded: “The Government is committed to protecting access to cash for individuals and businesses across the UK, including in rural areas. The Financial Conduct Authority is the regulator responsible for access to cash further to the Financial Services and Markets Act 2023, with powers to seek to ensure the reasonable provision of cash withdrawal and deposit facilities for individuals and businesses, including free withdrawal services for individuals.
“The FCA published its final rules on access to cash on 24 July. Under its rules, designated firms will be required to undertake assessments of a community’s cash access needs following the closure of a service or a community request, and to put in a new service if necessary.”
The new FCA rules come into effect from September 18. You can read the full policy here.