Regulator outlines new rules to maintain access to cash

They’ll be instructed to conduct such assessments when changes are being made to cash access services so that firms understand whether additional services are required to meet local gaps. These assessments need to consider local factors such as demographics and transport, and where they identify such gaps, they’ll need to act to address these needs.  

Under the new rules, firms will also need to respond to requests from residents, community organisations and representatives to consider, assess and plug gaps. Additionally, they will be asked to ensure they don’t close cash facilities – including bank branches – until additional cash services identified are available.  

The FCA’s executive director of consumers and competition Sheldon Mills said: “We know that, while there is an increasing shift to digital payments, over three million consumers still rely on cash – particularly people who may be vulnerable – as well as many small businesses. It’s important that we support consumers impacted by recent innovations. 

“These proposals set out how banks and building societies will need to assess and plug gaps in local cash provision. This will help manage the pace of change and ensure that people can continue to access cash if they need it.” 

It comes as concerns over branch closures could limit local communities’ access to cash services. And while these new powers don’t prevent bank branches from closing, the rules will have an impact where branches are a key local source of cash.

The FCA has opened a consultation on the proposed rules, which will be open until 8 February, with the regulator expected to finalise the rules by the third quarter of 2024.