Small firms call for action on cash as pay-to-use machines hurt vulnerable consumers

The Federation of Small Businesses has called for access to cash to be protected, as bank branch numbers fall.

A new report from Which? found that four in 10 small high-street businesses said cash is the number one payment method among customers, and six in 10 need to make regular cash deposits.

Martin McTague, FSB national chair said that with bank branch infrastructure further decimated over the pandemic, next week’s Queen’s speech is the last chance saloon where protecting access to cash is concerned.

“Since the Access to Cash Review was published, we haven’t seen meaningful movement in the numbers of customers and small firms that rely on cash day to day. But we have seen further closures of bank branches, and new limits on opening hours – choking off supply while demand remains,” he said.

“Notes and coins are still important to the lives of millions of consumers, not least disabled people, the elderly and those on tight budgets. Physical currency is also a vital backup for when digital systems fail.

“Online banking brings massive benefits in terms of productivity and efficiency. Policymakers and banks should be working hand in glove to get everyone online and up to speed with all the perks that managing finances safely online can bring.

Source Financial Accountant click here to read more.

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