Bank & ATM Closures Result In UK Cash Shortage

February 13, 2019
Bank & ATM Closures Result In UK Cash Shortage February 13, 2019 Clive Nelson https://plus.google.com/110107075468979879828/
ATM Closures

With the rise of digital payments, a lot of banks have been closing physical locations and ATMs, opting for apps and digital access. However, this is causing problems for a lot of people, especially in the United Kingdom (UK).

Consumer groups in England and Scotland are warning that there is trouble ahead as the common man will lose access to cash as banks and ATMs start closing. The groups have already requested protection for access to cash.

The Federation of Small Businesses and the consumer group Which? have noted that the common man now have a harder time making payments in small shops because they lacked cash.

According to stats, hundreds of cash machines have closed in recent months. A large amount of closures has already forced Link, the body that oversees UK ATMs, to pay ATM operators more subsidies to keep their ATMs open.

Which? 

The drop in the number of ATMs and bank branches has been ongoing for years now. Reports show that as many as 488 ATMs disappeared in the last six months. Some of them were protected machines, meaning that they were subsidized by Link. Last year, 102 ATMs were closed.

Link will be adding a new super premium for these ATMs in April. Every withdrawal will get the operator an amount of £2.75. This would help operators keep these machines in operations. The subsidy will cover 3,500 machines.

Need For A Regulator

However, Which? thinks there should be a dedicated regulator for these ATMs so that they can be properly monitored.

In a statement, Jenni Allen, a representative from Which? said

We have serious concerns that the alarming rate of cash machine and bank branch closures risks leaving people facing an uphill battle to access the cash they rely on. Cash is also a vital backup as fallible digital payments grow in popularity, so the government must appoint a regulator to oversee these changes and ensure no-one is excluded and left struggling to go about their daily lives.

However, it looks like cashless payments in the UK is going to be the future based on a new report which shows that the UK may end up becoming a cashless society in the near future. Though it may sound futuristic, it has turned into a current problem for more than eight million people who need cash to pay for their bills and take care of their daily needs

About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.


Related Articles

ESMA Changes Stance On Post-Brexit Limit On London Trading

The European Securities and Markets Authority (ESMA) decided to change its stance on some of its decisions when it comes

Saudi Stock Exchange Wants Sole Listing Of Aramco Shares

Tadawul, the Saudi Arabia stock exchange is going against bourses all over the world for the sole right to list

BIS Says Market “Jolt” Will Be First Of Many

The Bank of International Settlements (BIS) has said that the recent market selloffs in various global financial markets are going