It is often said banks want to get rid of cash, because cash is viewed as a cost centre and competes with their profitable payment products. The reality is certainly more complex. After all, banks are today the main channel for the distribution and collection of cash and most banks offer a broad range of cash services to both their private and business customers.
Here are ten reasons why banks should embrace and support cash:
- Cash sets a floor to negative interest rates
- Without cash, central banks could provide digital money to the public and compete with retail banks
- Regulators could force banks to provide cash services
- Cash provides a differentiator against tech giants which are entering the digital payment market
- Cash provides business continuity when payment systems break down
- Consumers want it
- Merchants need it
- Cash is growing
- Cash protects the privacy of individuals
- Globally, cash is the most widely used payment instrument.