SMEs welcome cash access protection proposals

Smaller sized businesses have very much welcomed proposals to protect access to cash withdrawal and deposit facilities.

The Financial Conduct Authority (FCA) has announced proposals on maintaining reasonable access to cash – news that the Federation of Small Businesses (FSB) says will be helpful for both consumers and businesses.

Martin McTague, National Chair of the FSB, said, “The FCA’s cash access protection proposals are highly welcome, and recognise the impact that loss of cash facilities such as bank branches and cash machines can have on local businesses and communities. It’s extremely important both consumers and small firms have choice over payments, so we’re pleased to see positive steps today to help maintain that in practice.

“Cash is still a key payment method for countless small businesses, with our research finding that one in four high street firms say it is the number one payment method of choice for their customers. It is vital for many people in vulnerable groups, as well as for overseas visitors.

“It is crucial that cash services are still accessible to small businesses who need to provide a variety of payment choices. Cash is also an integral back-up when electronic payments systems aren’t available and in areas with poor connectivity.”

Martin added, “Small businesses will be especially glad to see a new proposed requirement for designated banks and building societies to carry out an assessment of how the closure of a cashpoint or branch would affect overall cash access and deposit facilities in a locality, and how future gaps can be plugged.

“We are also very pleased to see the FCA specifically mention the cash services available via Post Office counters, highlighting the important role they play in giving small firms access to essential banking services such as withdrawals and deposits.

“Too many times in recent years, we have heard from small firms who are deeply concerned about the closure of the ‘last branch’ in their town or area, with knock-on effects on cash availability for consumers, and cash handling services for businesses. This is a known problem which has accelerated in recent years, so it is especially heartening to see the FCA respond with proposals to protect people’s ability to access cash.

“The proposals also strongly support banking hubs, where a number of banking and deposit services are available to local communities and businesses. In places where the nearest bank branch is some distance away, these can be helpful, even if they don’t replicate the full range of services of a branch.

“These proposals should drive the increasing momentum and support behind banking hubs and help to accelerate their introduction in high streets and town centres.

“We applaud the FCA for tackling this issue, and will be banking on a well thought out result which protects cash access for as many people as possible.”

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