Do you live in one of the UK’s most moneyless communities? ATM activity has plummeted by 40% – but some areas still prefer to stick to paper money
- ATM transactions have declined by an average of 40% since the pandemic
- But research shows big differences in the use of cash in different parts of the UK
The amount of cash withdrawn from ATMs is falling sharply as more Brits choose to pay by card – but some areas are proving to be far more in favor of cashless than others.
Since the start of the pandemic, transaction numbers at ATMs across the country have fallen by an average of 40 percent, according to a new analysis from Link, the UK’s largest ATM network.
But there are huge differences in the use of cash in different parts of the UK – and even within different parts of the same city.
Cash card: ATM transactions have declined much more in some areas than others
Larger cities and more affluent constituencies in cities such as London, York, Bath and Edinburgh are among the cities going cashless the fastest – with locals making less than half the amount of ATM withdrawals they did before the pandemic.
For example, the City of London and Westminster has seen ATM withdrawals fall by 64.1 percent since May 2019.
But Britons living in some of the UK’s most deprived communities still rely on paper money. In parts of Liverpool, Birmingham and Bradford, cash withdrawals have fallen by just 25 per cent in the same time.
Since May 2019, Liverpool Walton’s consistency has reduced cash withdrawals by just 25.2 percent.
According to Link, the total amount of money withdrawn in these money-dependent areas has only fallen by about 10 percent since February 2020, although inflation may be partly responsible for this figure remaining high.
In its Financial Services and Markets Act, the government has mandated that banks provide their customers with easy and free access to cash in the high street.
Cash now represents about 15 percent of all payments, down from more than 50 percent just over a decade ago, according to the latest data from UK Finance.
| Year | Transaction volumes | transaction values |
|---|---|---|
| 2019 | 2,608 million | £116 billion |
| 2020 | 1,643 million | £81 billion |
| 2021 | 1,522 million | £79 billion |
| 2022 | 1,587 million | £83 billion |
| 2023 (end of May) | 616 million | £33 billion |
| Source: link | ||
Yet about five million people still rely on cash, with the elderly and low-income earners often relying more on cash.
Hundreds of bank branches have closed since the beginning of last year, along with a decrease in the number of free-to-use ATMs.
John Howells, CEO of Link said: “Five million people still depend on cash every day, and deprivation is the biggest indicator of cash dependence.
“There is evidence that more and more people are turning to cash as a budgeting tool during the cost-of-living crisis, and many people from poorer communities also lack the digital skills and the tools needed to access online banking, such as smartphones and broadband.
“We must carefully manage the transition to digital to ensure that millions of vulnerable consumers are not left behind.
“This means a good spread of free-to-use ATMs, expanding new services such as Cash at the Till and supporting consumers in using banking apps and digital payments.”