Recommendation 10

HM Government Acknowledged

In anticipation of the Government’s legislation, significant steps have been taken by industry to improve coordinated efforts by firms to meet cash access needs. In December 2021, the Cash Action Group announced that it had developed a voluntary industry model for the provision of cash access facilities, including initiatives to provide shared services. Under the model, an industry coordination body assesses the cash needs of local communities with a view to ensuring appropriate cash services are in place. In light of these developments, and the significant role that such coordination bodies may play in the future of cash provision, the legislation allows HM Treasury to designate such bodies for FCA oversight. With regards to deposit-taking specifically, the Cash Action Group has made commitments to provide shared bank hubs in locations across the UK and is continuing to develop its approach to deposit solutions. Potential providers of deposit solutions may approach the FCA’s Innovation Hub to apply for help to test and launch new products and services to the market through Innovation Pathways and the Regulatory Sandbox. The Government remains supportive of initiatives by industry to protect access to cash. It is right that banks and building societies are held accountable for ensuring that their customers can continue to access cash services through appropriate solutions under the oversight of the FCA. It is not the Government’s intention for the Bill to determine how industry provides access to cash facilities. The Bill provides the FCA with powers to ensure reasonable provision of access to cash withdrawal and deposit facilities. As part of this the FCA will have oversight of the solutions developed and deployed by industry for the provision of cash withdrawal and deposit facilities.