UK banks and building societies will need to weigh up if local communities lack access to cash services, like branches and ATMs, and plug significant gaps, under new FCA rules.
From 18 September, banks and building societies will need to:
Go deeper with GlobalData
- assess cash access and understand if additional services are needed, when changes are being made to local services;
- respond to local residents, community organisations and representative groups, who will be able to request an assessment of whether there are gaps in local cash access;
- deliver reasonable additional cash services, where significant gaps are found, and
- keep facilities, including bank branches and ATMs, open until any additional cash services identified are available.
Demand remains in the UK for the physical channel
And according to research revealed by analytics and strategy provider, Curinos, there remains a significant appetite for physical banking services. For example, 12% of those surveyed prefer to open their primary current account in-person. In addition, 31% of recent purchasers visited a branch as part of their shopping journey.
Kurt Vogt Gwerder, Director at Curinos, says that the FCA’s new rules will help banks as well as customers.
“Branches play an important role in a brand’s competitiveness. Not only do they provide a space for people to discuss their financial needs with a specialist, but they also serve as an important marketing tool, driving awareness in the same way as an advert on the side of a bus. They create a physical presence in the marketplace that builds trust with potential customers. All of this contributes to a brand’s ability to get into a prospect’s consideration set and ultimately convert to purchase.
“The FCA’s new rules could provide longer term benefits to customers beyond the initial aim of improving access to physical banking services. The new requirements for banks to maintain their presence in local communities should serve as an incentive to rethink their current branch engagement models, including how branches could be used more effectively to create new value and experiences for customers that use them.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
