Cash in on the super ATMs of the future

Although cash machines, post offices and new-style community hubs will never replace good old-fashioned bank branches, we must accept that the banking landscape of yesteryear will never return. It’s gone for good, smashed to smithereens.

Where service with a smile (occasionally, with a frown) once dominated, machines now rule the roost. And not even a resurgent Labour, promising the country the world and more besides, will be able to change this after – as widely expected – it becomes our new government on July 5.

While Labour is expected to include in its manifesto, published this week, a promise to ensure face-to-face banking advice is available on every high street, it’s difficult to see how this will be fulfilled. For a start, it is likely to require amendments to existing legislation. This is because the current rules, introduced last year after a tortuous delay, are built around safeguarding access to cash, not advice.

Would such legislative fiddling be a priority for an incoming Labour government? I’m not sure. It’s got bigger fish to fry.

I’m also sure that the banks would fight tooth and nail to resist any new rules that forced them to spend more money on high street banking. Their focus is now on digitalising banking services.

As a result, under a government led by Sir Keir Starmer, the only thing that can be guaranteed when it comes to banks is that branches will continue to wither on the vine. Indeed, a few days ago, a leading banking expert told me as much.

He said that ‘hundreds more branch closures’ will be announced before the year is out – irrespective of who occupies No 10 Downing Street. So, my prediction is that the high street banking landscape taking shape before our very eyes will be in place for at least the next five years.

It may not be to everyone’s taste, especially those who (understandably) love going into their bank every week to withdraw cash and have a natter with a friendly member of staff. But at least it should ensure continued access to cash – and basic high-street banking services – in most communities up and down the country.

The first pieces in this jigsaw are already in place: a national network of post offices offering basic banking to all, including small businesses; and a countrywide army of free-to-use cash machines, albeit a shrinking one. Cashback services are also widely available, vital in rural communities.

The next jigsaw pieces – banking hubs – are moving into position, albeit slowly. These hubs enable customers of all the banks to access basic banking services. Representatives from the big banks are also on hand on specific days of the week to help those with more complex financial issues.

So far, 54 hubs are up and running in towns which have lost all their banks. But plenty more – 80 – have been approved and await suitable premises to be found.

And, as an increasing number of towns go bankless, I imagine Cash Access UK, the organisation responsible for getting hubs off the ground, will be given the green light to launch more. 350? 500? Who knows?

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Another jigsaw piece is also swinging into place. In recent days, three new Cash Access UK ‘super’ ATMs have been put into service in Atherstone (Warwickshire), Heathfield (East Sussex) and Swanage (Dorset). These are towns which have all lost their banks in recent years, although building society Nationwide maintains a branch in both Atherstone and Swanage, while Barclays provides a part-time cashless ‘local’ service in Heathfield’s parish council offices.

What makes these new machines ‘super’ is that they accept deposits from customers of most major banks (the exceptions are Santander, Metro and Nationwide). Traditional ATMs only accept deposits from customers of the bank whose name the machine operates under.

This multi-bank deposit facility will be particularly attractive to small businesses that need to bank cash takings on a regular basis. Closures have made banking of cash difficult for many businesses, forcing them to travel further afield to find a branch that will take their deposits. Some have had no choice but to go cashless – in the process infuriating shoppers who prefer to use cash.

Although this new breed of ATM is being trialled, it is here to stay. Fourteen more super cash machines will go live by the end of this month – with another 50 to 60 opening before the end of the year. It’s a welcome development.

Martin McTague, national chair of the Federation of Small Businesses, says super ATMs are an ‘important innovation’ that will enable consumer-facing businesses (primarily small retailers) to ‘deposit their takings for the day safely without shutting early or travelling for miles’.

Gareth Oakley, boss of Cash Access UK, agrees. He says deposit taking ATMs are a ‘vital’ cog in preserving access to cash.

So, while it is far from perfect, the emerging banking landscape should protect access to cash for a while yet.

• Do you agree? Email [email protected].

Vital link for the Isles of Scilly 

Two and a half years ago, my intrepid colleague Toby Walne endured a torrid 20-minute flight aboard a Twin Otter plane to spend time on the Isles of Scilly.

The journey was not so that Toby could marvel at the islands’ incredible scenery and feast on their mouthwatering seafood. It was to speak to residents upset over the impending loss of their last bank, Lloyds.

Despite the uproar and Toby’s vivid reporting, Lloyds shut the branch in April 2022, leaving residents and tourists dependent upon a mix of cashback facilities and post offices for access to cash. Lloyds, magnanimously, also kept its ATM open. 

Now, a new ATM has just been installed in the outside wall of the post office at St Mary’s Harbour on Scilly’s main island. It means residents and tourists will in theory have 24-hour-a-day access to cash, provided the machine doesn’t run out of notes (the Lloyds cash machine shut last month).

The new cash machine is a super result for local businesses, residents and the 100,000-plus tourists who visit the five islands each year.

Communities who believe their access to cash is not good enough can request a review from cash machine network operator Link. Visit link.co.uk/consumers/request-access-to-cash.

Brave Rob was an inspiration 

In May last year, I slogged my way round the Rob Burrow marathon in Leeds, raising £3,172 to help build a motor neurone disease (MND) care centre in the city.

I have three abiding memories from the 26.2-mile run: the tough course; being overtaken by Kevin Sinfield (pushing MND-stricken Rob in his wheelchair) at mile 16 and crying with admiration; and later watching on television Kevin physically carry Rob over the finish line.

Rest in peace, Rob. When built, the Rob Burrow Centre for Motor Neurone Disease will be a fitting legacy to your courage and bravery fighting such a terrible illness.

Tickets heading for the buffers

Paper rail tickets are heading for the buffers in favour of tickets carried on mobile phones – or payment via bank card at station gates. Yet more proof that we are hurtling towards a digital world that will sadly leave many people behind.

Rather than get rid of them, I think rail companies should improve their reliability. I buy a weekly ticket for my work commute and it’s 50:50 whether or not it works. An absolute pain when your train is about to set off, you can’t get through the barrier, and no staff are on hand to help.