A pilot program between U.K. bank Cambuslang and the U.K. state-owned Post Office could help give more access to in-person banking for those in need, according to a Sunday (Jan. 2) report from Financial Times (FT).
The pilot involved a new shared branch called BankHub, which FT says has seen more access to cash for those in need, quoting a report by Natalie Ceeney. Ceeney was in charge of all the projects as chair of the Community Access to Cash Pilots initiative.
Ceeney said that while the usage of cash was declining, it still played a vital part for many people worldwide.
The BankHub is set in an old butcher’s office and has ways to get cash and deposits, along with other rooms for specialized support. Since it’s been successful, similar projects will launch later on, the report says.
The pandemic has accelerated digital banking, causing an increase in branch closures of physical banks and ATMs. Per the report, this could have adverse effects on the elderly and the vulnerable, along with small business owners, who more often rely on those things.
For example, in the U.K., the number of bank branches had fallen from 11,355 in 2012 to just 6,965 in October 2021. There were also estimated to be around 1,000 more branches to close in 2021 and 2022, according to Which?
U.K. chancellor Rishi Sunak attempted to address the issue in July 2021, with a consultation looking at how people might be left without cash if too many places closed.
Sunak said that banks would have to make sure more cash facilities were available and said there would be “geographical access requirements.” The consultation was over as of September, and the government said the responses would help to inform the final legislation.
In spite of the numerous people who are still in need of in-person banking and cash, the U.S. Federal Reserve released a report recently that said there had been 11.7 billion fewer payments made in-person with cards.
By contrast, there had been an 8.7 billion remote card payment boost, the biggest on record.
Remote payments also saw a surge as they reached $3.85 trillion, compared to $3.2 trillion for in-person payments — marking another first in that remote payments were finally higher.
