With the Financial Conduct Authority (FCA) confirming its plans to protect access to cash for both consumers and small businesses, concerns have been raised.
While SMEs welcome the news that a change in rules could help stem the loss of cash infrastructure, there has been no mention of how to restore lost access.
Responding to the FCA’s recent publication, Martin McTague, National Chair of the Federation of Small Businesses (FSB), said, “Overall, the FCA’s new access to cash rules could play an important role in stemming the loss of cash infrastructure in the UK – but they are missing half of the picture, namely how to restore access to communities which have lost much or all of their cash points and bank branches. Many bank branches have closed in recent months and years, and doubtless more will do so before the rules come into effect in mid-September.
“Small businesses’ needs must be a priority – if local firms don’t have practical ways to handle the cash they get from payments, fewer of them will be able to offer cash as a form of payment in the first place.
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“The FCA is introducing cash access requests, which will allow anyone to ask for an assessment of cash access levels in their area, but these risk being underutilised by businesses and communities due to a lack of awareness. The banks and building societies subject to the FCA’s rules should be made to do their utmost to let the public know that they have a right to request a cash access review, so nowhere is left behind.
“After a cash access request is made, any identified additional services needed must be delivered within three months of the assessment or closure, which is good news, as is the rule that branches must stay open while these services are put into place.
“For many people, cash is their main payment method, and in order for them to be able to pay for goods and services, the infrastructure needs to be there to enable small firms to continue to accept cash, if they wish to.”
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