Did the 2019 Access to Cash Review go far enough?

In 2019, under the stewardship of Natalie Ceeny we published the "Access to Cash Review", sparking discussions about the future of cash in a rapidly digitising world. This blog delves into the report's impact, analysing its success in addressing concerns and charting a path for continued access to cash.

The Need for the Report

The rise of digital payments has undeniable benefits: convenience, speed, and security. However, it leaves behind a segment of the population who rely on cash. This includes the elderly, people in rural areas with limited internet access, and those financially excluded from digital banking systems. Without readily available cash, they face challenges in managing everyday finances, potentially leading to social isolation and financial vulnerability.

The report aimed to address these concerns. It highlighted the importance of maintaining access to cash for all and outlined a framework for collaboration between the government, the financial industry, and consumer groups.

What the Report Achieved

The report's key achievement was raising awareness of the potential dangers of a cashless society. It brought national attention to the needs of those who depend on cash and the potential for exclusion if digital payments become the sole option.

Furthermore, it led to concrete actions:

• Cash Action Group: The report facilitated the creation of the Cash Action Group, a collaborative body bringing together stakeholders to develop solutions and monitor access.

• Cash machine network protection: The government committed to protecting the existing ATM network, recognizing its vital role in ensuring geographical spread and accessibility.

• Financial inclusion initiatives: The report spurred efforts to promote financial inclusion, such as encouraging banks to offer basic bank accounts with free cash withdrawals.

Did it Go Far Enough?

While the report made progress, some argue it fell short:

• Limited Regulatory Measures: The report lacked concrete regulations to enforce cash access. Critics suggest a legal obligation on the financial sector to maintain a baseline ATM network and ensure cash acceptance in essential services.

• Digital Divide Deepens: The report focused on maintaining the existing network, neglecting the growing digital divide. Initiatives are needed to bridge the gap and equip those reliant on cash with the skills and confidence to use digital payments securely.

• The Future of Cash: The report didn't offer a long-term vision for cash in a constantly evolving financial landscape. With advancements in digital currencies, a proactive approach is required to ensure cash remains relevant and accessible alongside new technologies.

Looking Forward: What still needs to be done

The conversation around access to cash needs to continue and evolve. Here are some key areas that I believe still need resolution:

• Balancing Innovation and Inclusion: Technology can be leveraged to enhance cash accessibility. Mobile cash top-ups and cash-back options at retailers could be explored as alternatives to traditional ATMs.

• Financial Education: Equipping people with the skills to use digital payments securely alongside cash is crucial. This could involve targeted programs for vulnerable groups and promoting digital literacy initiatives.

• Regulatory Framework for the Future: As technologies evolve, a flexible regulatory framework is essential. This would ensure continued cash access while fostering innovation in the digital payments sphere.

Conclusion

The 2019 Access to Cash Report served as a springboard for a necessary conversation. However, the fight to ensure inclusive access to cash is far from over. Collaboration between policymakers, the financial industry, and consumer groups is key to finding solutions that address the evolving needs of a diverse population. Striking a balance between technological advancements and inclusivity will be crucial in ensuring everyone, regardless of background or technological capability, has control over their finances.