The Guardian reports today on an interesting document, the Access to cash review, which has investigated to what extent the UK market infrastructure - and UK citizens - are ready for developments in the cash markets that are likely to take place in the coming 15 years.
As the use of cash declines, maintaining its availability becomes increasingly burdensome for market actors - banks in particular.
With ATMs and bank offices closing by the day, the availability of cash may become an issue in not so long time - are consumers ready to go cashless? According to the review, 17% of consumers could not dispense of cash, and around 4% still conduct all of their market transactions in cash.
- Government and regulators to step in urgently to ensure cash remains viable
- A “Guarantee to Cash Access” for all, including those in remote and rural areas
- Those providing essential services to be required to allow consumers to pay by cash
- A more efficient, effective and resilient wholesale cash infrastructure to ensure that cash remains viable as its use declines.
The saliency of the issue for vulnerable consumers hardly needs explanation - as it is mainly older consumers, those living in rural areas and people in the informal economy who rely on cash in their daily lives. It seems all but unlikely that similar issues will also need to be discussed outside of the UK.
