Not quite the end for the pound in your pocket...

What does the future hold for cash? asks Ian Handford

HAVING failed to persuade UK banks and building society bosses to delay the pace of branch closures, which for years has been occurring every month, it is surprising our Government remains so supportive to those of us that still prefer using cash as a way of paying or receiving money.

Even the Covid pandemic is making life extra difficult for cash transactions. Government has also been unable to stop the dwindling number of ATM’s (automatic teller machines) disappearing from high streets and, in some instances, the banks or building societies themselves.

With civil servants suggesting cash ought to remain an option for those wishing or needing to use coins, banknotes or cheques in preference to payments through electronic means or plastic, it’s possible that the many advocates of a “cashless society” may yet lose their battle.

Having adopted the idea that retailers should have an opportunity to widen their in-store services by offering “free cashback” facilities via a “click and collect Cash” scheme the Government, in backing the “community access to cash pilot scheme” must have noted this service in Italy and Switzerland (soon to start in Sweden) was successful, as it allows any customer or member of the public access to cash collection (within 15 minutes) or if an order is made, the cash can be delivered with the order to a home address.

The idea of extending in-store banking services and cash is now popular as it does not depend on an in-store order having to be made. The service abroad is offered by some 2,000 food takeaway shops, restaurants and independent retailers all of which now provide cash as required (or delivered) as part of a service operated by the “Sonect Company”.

Having championed retention of cash for more than ten years, imagine my joy on learning the Government confirmed its commitment to protect “access to cash for as long as people may wish”.

It has already seen Burslem Town Council trial “access to cash” pilot schemes in Staffordshire, along the lines of the Sonect Company scheme. Retailers will be allowed to operate (unspecified) bank services including “click and collect cash” via the initial trial schemes, which if successful will then be rolled out across the UK.

More good news came on learning “bank hubs” (sharing of bank services at a single premises) are back on the agenda and about to be trialled.

This was an idea highlighted by me years ago and it seems the main high street banks are at last going to finance eight separate pilot schemes to try and stem the tide of losing their existing clients, when a branch closes.

The withdrawal of the “bank guarantee card” scheme which had protected cheque payments became the final “nail in the coffin” for retail cheques, as today virtually all the high street stores refuse payment by cheque. Thankfully, small businesses and some independent traders will still accept cheques although again virtually all the utility firms demand payment is made by bank transfer. The fact that posted cheques are still more secure and safer than bank transfer (subject to scamming) only becomes apparent if you have ever suffered a bank payment going awry.

Finally, how interesting it was to learn the Bank of England (BOE) admit they seem to have lost £8billion of banknotes and cash in general circulation, naming it “a cash paradox”. They seem to believe much of the missing cash has been invested or stored “offshore” by the very rich, although my view it’s far more likely to be “stored under the bed” (as our parents would have remarked). Throughout his life my father never trusted banks and indeed never had a bank account as like thousands of that generation he preferred keeping his cash at home available for use as and when required, even though not earning interest.

Bank hubs should make bank counters significant again and with the BOE confirming they will have to print new runs of bank notes for at least the next ten months so Britain does not run out of cash, it all spells good news for those of us that enjoy using cash.

With “lockdown” slowly nearing its end this will bring renewed activity to the high street and maybe the new ‘click, collect and cash delivery scheme’ will again see more use of cash.

Sonect even provide a free map (instore) as part of their instant service so that customers can choose the address that is to be used.