The UK’s Financial Conduct Authority (FCA) is introducing new protections for cash deposit and withdrawal services in response to a parliamentary request.
Facts
- The FCA will use new powers granted under the Finance Services and Markets Act 2023 to ensure reasonable provision of cash access.
- The FCA plans to maintain a network of cash access facilities and take a balanced approach.
- Despite digital banking growth, 3.1 million UK adults still heavily rely on cash for payments.
- Access to cash remains good, with 95.1% of the population living near free-to-use cash withdrawal points.
- The FCA will propose rules for banks and building societies to assess cash provision when significant changes in access occur.
- Rules will be enacted regionally, focusing efforts where deficiencies in cash access could have a significant impact.
- A full consultation on these rules is expected to begin soon, with implementation by summer 2024.
