Financial Conduct Authority Seeks Views from Residents and Businesses
Local Stirling MP Alyn Smith is urging Stirling businesses and residents reliant on cash to have their say on new industry rules, as the Financial Conduct Authority launches their consultation in response to UK Government legislation.
New powers granted to the FCA under the UK Financial Services and Markets Act 2023 has led to a proposed regime, under which designated banks and building societies will need to assess gaps in access to cash. These assessments will need to take into account local factors such as demographics and transport, and where gaps are identified, action must be taken to address those needs.
The news comes as the Bank of Scotland has announced the stoppage of their mobile branch banking service in Killin and Balfron as of May 2024, itself a replacement to the closure of in-person branches. HSBC and Barclays also closed their city centre branches earlier this year, to the dismay of public figures and customers. Research shared from the Association of Convenience Stores highlights there has been a 34% reduction in the number of free-to-use ATMs in Stirling since July 2018.
Stirling MP Alyn Smith said:
‘Access to cash and the ability to make deposits remains paramount for many people and businesses in Stirling. The Financial Conduct Authority’s own research shows that those of an older age, with disabilities, or from minority ethnic backgrounds, are all disproportionately likely to rely on cash as a payment method compared to the population as a whole. The closure of high street branches, the removal of mobile branch services and the disappearance of free-to-use ATMs do not bode well for the future of cash, nor an economy equal and open to all.
‘I’ve written to the FCA to seek further information on Stirling’s local circumstances. Whilst there is much to welcome in these proposed rules, including ensuring communities have a voice in the provision of cash-access facilities, I continue to worry about the removal of vital public services by private companies and banks – especially in our rural communities.
‘I urge residents, businesses and any other user of cash facilities to complete the FCA online consultation and have your say.’
Notes:
Information on the FCA consultation can be found here.
The specific consultation paper can be found here.
You can respond online to the consultation by emailing cp23-29@fca.org.uk or using their online form here by February 8th 2024.
