- The UK’s Financial Conduct Authority (FCA) proposes new rules to safeguard access to cash amid the rising popularity of digital payments.
- Designated banks and building societies must assess gaps in cash access, considering local factors like demographics and transport.
- Firms need to provide additional cash services in identified gaps, responding to requests from residents, organizations, and representatives.
- As of Q1 2023, 95.1% of the UK population is within one mile, and 99.7% within three miles, of free-to-use cash withdrawal points.
- Despite the shift to digital payments, over three million consumers, especially vulnerable groups, and small businesses, still rely on cash.
- The rules won’t prevent bank branch closures but aim to manage the pace of change and ensure continued access to cash.
- The FCA is open to feedback until February 8, with plans to finalize the rules by Q3 2024.
