- National record increases in cash usage for the second year in a row
- Last year there were 31.4 million withdrawals from ATMs nationwide
- Where a Nationwide is the last branch in a city, ATM use increased by as much as 154%
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New data shows that cash withdrawals at Britain's largest building society have risen for the second year in a row.
Nationwide – which now has more branches than any major bank – recorded 31.4 million withdrawals from more than 1,200 ATMs last year.
It marks the second consecutive annual increase, as 2022 saw the first increase in cash withdrawals in 13 years
Before 2022, ATM withdrawals had fallen steadily, most sharply at the start of the pandemic, when national ATM withdrawals plummeted by more than 40 percent in a year.
On the bright side, cash usage rose for the second year in a row, after a sharp decline during the pandemic
It comes as lenders have announced at least 189 branches will close by 2024. The latest exodus follows the 645 that closed last year. Nearly 6,000 have disappeared since the beginning of 2015.
In cities where Nationwide is the last branch standing, usage spikes have been seen averaging 55 percent – and in some places even up to 154 percent.
There has been something of a cash renaissance in 2023. A report from the British Retail Consortium published early last month found that the use of cash had grown for the first time in a decade, from 15 percent in 2021 to 19 percent of all transactions.
One reason for the surge in cash use is that many have returned to budgeting with cash, the BRC says.
Use of ATMs
An increase in the number of multi-function ATMs was recorded nationally, meaning cash withdrawals are only part of the picture.
Rural ATMs in Twickenham, Redruth and Purley saw withdrawals increase by 154 per cent, 144 per cent and 92 per cent respectively.
Nearly half of all transactions involve other services – from printing mini statements and paying bills and changing PIN codes to paying with cash and checks.
Nationwide has seen a 10 percent increase in the number of times its ATMs were used to deposit cash into accounts over the past five years.
The average amount withdrawn on each withdrawal from national ATMs was around £105 last year, an increase of one per cent on the previous year.
While the average amount deposited has risen to £277 – a 29 per cent increase from five years ago.
Otto Benz, payments director at Nationwide Building Society, said: 'ATMs play a crucial role in society, allowing people to easily access and manage their cash flows.
'Unfortunately, the major banks have closed and in some cases are still closing large numbers of branches, meaning there are far fewer free ATMs available.
'ATMs do more than just hand out cash: almost half of transactions come from people depositing money, checking their balance or paying a household bill.
“This shows that this is far from the end for cash and we will continue to offer our customers the ability to access their money on their terms, whether that be digitally or in a branch.”
| Branch | Increase in the use of cash in the past year |
|---|---|
| Twickenham | 154% |
| Redruth | 144% |
| Purley | 92% |
| Broadstone | 80% |
| Hunstanton | 77% |
| Potter's Bar | 74% |
| Windsor | 73% |
| Sandbach | 73% |
| Bromborough | 72% |
| Stanmore | 64% |
| Chingford | 52% |
| Easingwold | 52% |
| Marlow | 50% |
| Stony Stratford | 45% |
| New Malden | 44% |
| Pocklington | 39% |
| Whitstable | 26% |
| Wallingford | 23% |
| Upton Park | 21% |
| Birstall | 12% |
| National Construction Association | |
Last branch in the city
Over the past year, use of Nationwide ATMs in cities where the building society has now become the last branch in town has increased by an average of 55 percent.
The places with the biggest increase in usage as a result of becoming the last branch in the city include Twickenham with a rise of 154 per cent, Redruth where usage rose by 144 per cent) and Purley with a peak of 92 percent.
90 percent of the increase in last branch admissions in urban areas over the past two years came from non-national customers.
Nationwide Building Society has pledged to maintain branches for customers and has said that wherever it has a branch it will continue to do so until at least 2026.
The Financial Conduct Authority recently proposed new rules to protect access to cash in Britain.
Under the proposals, designated banks and building societies will have to assess gaps in access to cash.
Where the assessments indicate that a significant shortage exists in a city or that this could occur in the future, banks and building societies will be required to provide additional money services to fill the gaps.
Banks and building societies will need to ensure that they do not close cash facilities, including bank branches, until any additional cash services are available.