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<p>The way consumers and businesses interact with their banking and make payments
continues to develop at pace, bringing significant benefits to those who choose to
opt for the convenience, security, and speed of digital services.</p><p> </p><p>In
recognition that cash continues to be used by millions of people across the UK, the
government is currently taking legislation through Parliament as part of the Financial
Services and Markets Bill to protect access to cash. The Bill will establish the Financial
Conduct Authority (FCA) as the lead regulator for access to cash and provide it with
appropriate powers to seek to ensure reasonable provision of withdrawal and deposit
facilities. These powers will allow the FCA to have regard to factors it considers
appropriate, which could include cost for users.</p><p> </p><p>Regarding in-person
banking services, the government believes that everyone, wherever they live, should
have appropriate access to banking services. However, decisions on opening and closing
branches, and the provision of in-person services, are a commercial issue for banks
and building societies.</p><p> </p><p>Guidance from the FCA sets out its expectation
of firms when they are deciding to reduce their physical branches or the number of
free-to-use ATMs. The guidance has recently been strengthened and clearly expects
firms to put in place alternatives, where this is reasonable, to ensure customer needs
are met. Where firms fall short of expectations, the FCA may ask for closures to be
paused or other options to be put in place.</p><p> </p><p>Alternative options to access
cash and in-person banking services can be via the Post Office and other industry
initiatives including cash pods, mobile banking vans and shared banking hubs. The
Post Office Banking Framework allows 99% of personal banking and 95% of business customers
to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post
Office branches across the UK. Meanwhile, industry has committed to shared banking
hubs in over 40 locations across the UK to date.</p>
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