The Financial Conduct Authority has issued new proposals to ensure that people have access to money when banks, building societies and credit unions shut down their branches and ATMs.
The proposed guidance have outlines how these organisations should make sure that their customers are treated fairly and that plans that could change their access to money are clearly communicated.
To make sure people relying on cash can still access it, the FCA said it would expectat that firms consider providing, and put in place alternative access arrangements where it is reasonable to do so.
These could include sharing services with other providers, providing mobile banking hubs or cash delivery services, commissioning a free-to-use ATM or supporting customers to use digital channels .
The FCA has also made it clear that although closures or conversions are decisions for firms to take, firms should inform the FCA at an early stage of any plans to close or convert branches or ATMs, and continue to engage with the FCA through any process.
“Access to cash is a priority for the FCA,” says Sheldon Mills, interim executive director of strategy and competition at the FCA. “While in the recent climate we have seen some consumers move to digital payments, we have also seen the importance of the continued availability of cash to many consumers, including those most vulnerable. We welcome the government’s plans to legislate as a longer-term solution, and the work the industry is doing already to maintain cash.
“Firms have managed access well through Covid-19, and we have seen many good examples of how they have used alternatives to branches and ATMs during the crisis. We expect them to build on this work and to continue to think about consumer needs as they take decisions on future closures.
“We’ve published this guidance to remind firms of our expectations, which firms need to take account of throughout their decision-making process on the future of their branches or ATMs.”
The consultation closes on Thursday 30 July.
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