UK building society Nationwide is reporting an uptick in ATM cash withdrawals for the third year in a row as Brits turn to notes and coins to help with budgeting at a time the cost of living remains high.
Nationwide recorded around 32.8 million cash withdrawals from the 1260 ATMs at its 605 branches last year – a 10% increase on 2023. The average amount of cash taken out on each withdrawal was £112.
The figures chime with recent data from the British Retail Consortium, which found that cash was used for almost one in five purchases at 19.9% of transactions in 2023, up from 18.8% in 2022.
Otto Benz, director, payments, Nationwide, says: “The rising cost of living continues to impact people and many are opting to budget with physical money to avoid getting into debt.”
The number of withdrawals is still well down on the 52.4 million seen in 2014 but up on the 25.5 million seen in 2021, when the Covid-19 pandemic saw cash usage plummet.
In addition to cost of living factors, Nationwide cites bank branch closures for the rise in ATM withdrawals. This building society saw a 16% increase in withdrawals from non-customers, compared to a four per cent increase from Nationwide customers.
Says Benz: “The resurgence of cash shows why we need to continue having a physical presence on the high street, enabling customers to access their money on their terms, whether digitally or in branch.”
The rise in multi-use ATMs mean that cash withdrawals are only part of the picture. Nearly half of all transactions are for other services – from printing mini-statements and paying bills and changing PINs to paying in cash and cheques.
Source: Finextra
