The introduction of the new law is aimed at ensuring the continued convenience of cash withdrawal and deposit services, particularly in light of the increasing closure of bank branches and ATMs. Under the proposed Financial Services and Markets Act 2023, the Financial Conduct Authority (FCA) will be granted the authority to prevent banks and building societies from closing cash access services if there is no suitable alternative available within a reasonable distance.
The government has stated that it anticipates providing further details in a policy statement by the end of September. The Association of Convenience Stores (ACS) has expressed its approval of this legislation; however, it remains concerned about the growing number of convenience retailers being compelled to transition from free-to-use to charged ATMs due to the rising costs faced by ATM operators.
James Lowman, chief executive of the ACS, highlighted the importance of cash as a preferred payment option for millions of individuals in the UK. He emphasized the commitment of convenience retailers in offering ATM services to customers locally and welcomed the measures aimed at sustaining the ATM network. Lowman also called on the government to review the viability of interchange fees, enabling convenience retailers to continue providing free access to cash, rather than adopting a pay-to-use model.
According to a tracker tool released by the ACS in April of this year, the total number of ATMs across the UK has declined by more than 20% since 2018. Figures from the most recent Local Shop Report indicate that 44% of retailers currently offer free-to-use ATMs, while 18% operate charged ATMs.