LONDON—The U.K.’s Financial Conduct Authority (FCA) has proposed a new set of rules aimed at protecting access to cash for consumers and businesses as digital payments continue to rise.
In accordance with the new powers granted to the FCA by the Financial Services and Markets Act 2023, Fintech Futures reported the regulator said that designated banks and building societies will need to assess the gaps in access to cash, taking local factors such as demographics and transport into consideration.
The report further explained that designated firms will have to consider if additional services are required to meet local gaps and deliver additional cash services wherever gaps are identified.
Additional Requirements
They will also be required to respond to requests from local residents, organizations and representatives to “consider, assess and plug gaps” and ensure they do not close cash facilities, including bank branches, until the additional cash services are made available, Fintech Futures said.
According to data gathered by the FCA and the Payment Systems Regulator (PSR), as of Q1 2023, 95.1% of the U.K. population are within one mile of a free-to-use cash withdrawal point, such as cash machines or Post Office branches, while 99.7% of the U.K. population are within three miles.
‘Increasing Shift’
“We know that, while there is an increasing shift to digital payments, over three million consumers still rely on cash – particularly people who may be vulnerable – as well as many small businesses. It’s important that we support consumers impacted by recent innovations,” said Sheldon Mills, executive director of consumers and competition at the FCA.
Similar efforts, including proposed legislation, at both the federal and state levels has been proposed in the U.S.
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