Responding to new figures from Which? showing that - following the loss of 1,200 bank branches and 9,500 fee-to-use ATMs over the past two years - 3,000 calls for cash machines have been made through new ‘request an ATM’ tools, Federation of Small Businesses (FSB) National Chairman Mike Cherry said:
“Cash remains the payment method of choice for millions of small business customers, and for many it is still an essential part of the payments mix.
“When bank branches and ATMs are lost that hurts footfall and cashflow in local communities, making it harder for small firms to compete. Equally when ATMs start charging, every pound lost to fees is a pound not spent with the small firms that drive economies forward.
“We need to see a guarantee which enables those who want to use cash to continue doing so – especially in remote and rural areas – alongside a resilient wholesale cash infrastructure to ensure that the use of cash remains viable as its presence declines.
“We also need to protect the freedoms of small firms. They should be allowed to go cashless if that works for their businesses and customers.
“Enabling more small firms to offer cashback could form an important part of the mix here. This Government is keen to remove barriers to business, one of which is the need for customers to make a purchase before they can access cash. It’s time for this barrier to be removed. We also need to see card providers giving small firms the right incentives to offer this service.
“We’re hopeful that the new Access to Cash Pilots will pave the way for some fresh, innovative ways to collaborate. We should be taking a more holistic approach to bank branches, with outlets offering both in-person financial support and community hubs centred around meeting and event spaces, WiFi lounges and cafes.
“With our cash infrastructure declining so rapidly, Which? and the Access to Cash Review are absolutely right to say the option of wider legislation to protect cash access needs to be kept on the table.”
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About FSB
As the UK’s largest business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed.
FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.