The March 2025 Monthly Report of the Bundesbank provides a comprehensive analysis of access to cashMoney in physical form such as banknotes and coins. More throughout Germany.
Germany boasts a dense network of cash access points, with around 6,000 municipalities housing at least one ATM or bank branch. However, approximately 3.6 million residents must travel outside their communities to access cash from a credit institution. On average, Germans live 1.4 kilometers from the nearest cash withdrawal facility, with 95.3% of the population having an ATM or bank counterAutomatic device for the counting of banknotes or coins. More within 5 kilometers of their home. This accessibility is more pronounced in urban areas, where the average distance to a cash withdrawal location is shorter compared to rural regions.
The disparity in cash accessibility between urban and rural areas is significant. In urban regions, the average distance to the nearest cash withdrawal facility is 1.1 kilometers, compared to 1.9 kilometers in rural areas. While 98.1% of the urban population has access to an ATM or bank counter within 5 kilometers, this figure drops to 90.3% for rural residents. This discrepancy underscores the challenges in maintaining equitable access to cash across different geographical areas.
Retailers play a complementary and increasing role in providing cash withdrawal services, supplementing the infrastructure offered by credit institutions. The share of cash withdrawn at a point-of-sale has grown from 1% in 2011 to 9% in 2023. When considering points of sale alongside ATMs and bank counters, the average distance to the nearest cash withdrawal facility decreases to 1.2 kilometers. This integration of retail cash services enhances overall accessibility, particularly in areas where traditional banking infrastructure is less prevalent.
Despite the current density of cash access points, there is a concerning trend of declining cash infrastructure. The number of bank branches has more than halved since 2002, from 53,000 units to 21,000 in 2023. The number of ATMs peaked in 2018, with 59,000 devices and has dropped to 51,000 in 2023. This trend is driven by factors such as cost pressures in the banking sector, the rise of online banking, and security concerns related to ATM attacks. The perception of cash availability has also deteriorated, with a growing proportion of the population finding it more difficult to access cash.
To safeguard the freedom of choice between cash and digital paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More methods, it is essential to maintain and potentially enhance the cash infrastructure. The Bundesbank, as part of the Eurosystem’s cash strategy, is committed to ensuring the ongoing availability of cash. This commitment is crucial for supporting financial inclusionA process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products. While it is recognised that not all individuals need or want financial services, the goal of financial inclusion is to remove all barriers, both supply side and demand side. Supply side barriers stem from financial institutions themselves. They often indicate poor financial infrastructure, and include lack of ne... More and providing a reliable means of payment during crises, such as technical disruptions in digital payment systems.
At the Cash Symposium hosted by the Bundesbank in February, Bundesbank Executive Board member Burkhard Balz said: “More than 70% of people in Germany want to use cash as before in the future or even to use cash more. In my view, these results represent a mandate to the Bundesbank, the cash players and politicians to make this future possible with cash.”
While Germany currently has a dense network of cash access points, the trend of declining infrastructure and increasing perceived difficulty in accessing cash highlights the need for proactive measures. Ensuring the continued availability of cash is vital for maintaining financial inclusion and providing a reliable fallback during crises. The Bundesbank’s commitment to preserving cash access is a step in the right direction, but ongoing efforts are necessary to address the challenges posed by the evolving payment landscape.
In summary, although cash remains widely accessible in Germany, the declining infrastructure and perceived difficulties in accessing cash underscore the importance of proactive measures to maintain and enhance the cash ecosystem. The integration of retail cash services and the commitment of the Bundesbank and other institutions are crucial in ensuring the continued availability of cash for all residents.