New rules brought in to ensure that businesses and individuals that rely on cash can continue to access it are proving successful in local communities, according to the Financial Conduct Authority.

Since the rules to protect access to cash were confirmed by the watchdog in July, Link, which manages the UK’s cash access and ATM network, has reassessed the needs of local areas where banking services are changing, and introduced banking hubs in 15 communities; introduced ATMs for six, and put in place plans to introduce an automated deposit service or ‘enhanced Post Office’ in a further six.

Under the new rules, banks and building societies must assess whether changes to local services, like closing branches or cash machines, leave local communities lacking ways to take out or pay in cash.

Additionally, residents, businesses, local representatives and charities that feel there is a gap in cash access can request a review. Charities or local groups will be able to share a collective view of community needs, including the most vulnerable residents and businesses that rely heavily on cash.

Link will then have 12 weeks to carry out a gap analysis. If there are significant gaps, banks and building societies will need to deliver additional cash services to meet the local areas’ needs. These could include banking hubs, cash machines, deposit ATMs and Post Office facilities. The FCA will use data to oversee how the rules are working in practice.

Sheldon Mills, executive director for consumers and competition at the FCA, said: “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 FCA’s 2022 Financial Lives Survey found that while digital payments are popular, 3.1 million adults still use cash for everyday payments.

---