New FCA regulations designed to protect access to cash have come into effect, already making a positive difference in local communities.

Since the Financial Conduct Authority (FCA) introduced these new rules in July, LINK, the organization responsible for managing the UK’s cash access and ATM network, has re-evaluated the needs of communities where banking services are evolving.

As a result of these changes:

• 15 communities that were previously not considered for banking hubs will now receive one.
• 6 communities will have an ATM added to their banking hub.
• 6 areas will gain an automated deposit service or an improved Post Office.

Importantly, existing services will remain in place until new services are available. These updates are a direct outcome of the new FCA regulations.

Under the new rules, banks and building societies are required to assess whether changes, such as closing branches or removing ATMs, leave communities without sufficient access to cash services.

In addition, residents, businesses, local representatives, and charities can request a review if they believe there is insufficient cash access in their area. Local groups, including charities, can collectively present their concerns, particularly considering the needs of vulnerable individuals and businesses that depend on cash.

LINK has 12 weeks to conduct an assessment to identify gaps in cash withdrawal and deposit services. If significant gaps are found, banks and building societies will be required to provide additional cash services, such as banking hubs, ATMs, deposit machines, or Post Office facilities. The FCA will monitor the effectiveness of the rules using real-world data.

Sheldon Mills, executive director for consumers and competition at the FCA, said:

“The way we use money is changing, with fewer people relying on cash for daily transactions. While we don’t intend to halt this shift, we are committed to ensuring fair access for those who still depend on cash. These new rules are already making a difference, preserving essential services in communities across the UK.”

The FCA’s 2022 Financial Lives Survey revealed that despite the rise of digital payments, 3.1 million adults still rely on cash for everyday transactions. The new rules aim to ensure that both individuals and businesses can continue to access cash when they need it.