ATM

The economic fallout of the pandemic is still in its very early stages, but the visible signs are spectacular: some industries have grinded to a complete halt; unemployment has risen massively; transaction volumes have dropped as consumers are increasingly in lockdown. So far, the impact on cash demand varies significantly from country to country.

As a growing part of the world shifts into lockdown, governments are identifying critical infrastructure industries that must continue operating to ensure public health and safety as well as national security.

According to consumer Association, Which? the closure of ATMs have saved UK banks £120 million in ATM interchange fees and cost consumers £104 million in surcharging.

ICICI Bank of India has launched a cardless cash withdrawal service, where customers no longer require a payment card to withdraw cash from ATMs.

Bank of Ireland and Allied Irish Bank are planning to sell over 1,000 cash machines, sparking concerns from consumers that the move will lead to hike in fees for cash withdrawals.

The four major Belgian banks will follow the example of Finland, Sweden and the Netherlands and will pool their ATM networks under a single white label brand.

The European Central Bank has delivered a legal opinion supporting the draft law proposed by the Swedish government, which aims at guaranteeing that the largest banks provide a minimum level of cash services throughout the country.

Following the launch of the Request an ATM scheme in October, LINK has received over 2,700 enquiries from across every part of the country. Link has announced a further £4 million in new investment from banks to fund new free-to-use ATMs.

Early October, LINK the UK's main ATM network inroduced a £1 million fund to support the installation of free-to-use cash machines in remote communities. In less than a month, over 100 applications were received.

The ATM doesn't just dispense cash, it dispenses value way beyond that of the banknotes it disgorges. They play a pivotal role in disaster risk reduction, poverty alleviation and social protection. But they could do more.

Building a sustainable cash infrastructure is necessary in the UK’s payments landscape. LINK, the UK’s largest cash machine network, has announced new measures to enable free access to cash.

The impact digital and mobile technologies have had on the financial services industry is undeniable, but innovation in the ATM self-service channel and the unique characteristics of cash will prove just as significant in the quest for greater financial inclusion.