Persistent cash use suggests many still missing out on digital innovation
Persistent cash use in a world rapidly going digital sends an important message: many people are still excluded from the advantages of digital innovation.
By Anna Tickle and Research & Campaigns Team.
Last August, we described growing concerns about the early arrival of a cashless society. We pointed to ‘fears of ‘an accelerating rush to digitalise affecting the lives of millions’.
A year on and those fears still ring true. When news emerged in July of a pause in orders for new coins by HM Treasury it produced a well-rehearsed response.
Despite this, recent studies show a continuing reliance on cash in the UK.
UK Finance reports almost four out of ten UK adults (39 per cent) living largely cashless lives during 2023. But the number of people mainly using cash actually rose to 2.6% of the population, up from 1.7% in 2022.
There are many barriers preventing everyone going cashless, including:
- Going online requires digital skills that many people do not have
- Some people may lack confidence in their abilities
- Not everyone has a smartphone or access to the internet
- Many people prefer cash and use it to help with budgeting.
Abigail Wood, Age UK, says: “Older people are constantly telling us how left behind they feel, and how much harder life is when they are unable to use cash. Many view cash as the most reliable and straightforward way to pay, as well as an effective means of managing their weekly budget when money is extremely tight – as it is for the majority now”.
Going cashless is quick, easy and convenient, but simply isn’t an option for everyone.
Epsom and Ewell
In E&E we are lucky to still have in-person banking at a range of big-company branches. Inevitably however there are changes with reduced hours and services.
At CAEE experience tells there are a lot of local people who can’t go completely digital; they may lack the skills, confidence or access to essential devices. We regularly see clients who need support with tasks most people now carry out online. It may be applying for appointments, licenses or benefits or shopping around for a good deal.
Businesses and government are helping those who are struggling but often could do more. Even making general customer service more user-friendly can go some way to improve people’s confidence, capability and access.
No-one left behind
Back to the persistent use of cash, however. We see from UK Finance and our own clients that society is not yet prepared to go completely cashless. We have a responsibility to ensure that no-one is left behind in a time of rapid digital transformation.
In 2019 Natalie Ceeney, Chair of the Access to Cash Review, wrote of the dangers of ‘sleepwalking into a cashless society’. She went on:
‘People need cash for a wide range of reasons, and the barriers to using digital payments are very real. There are still over three million adults in the UK without a smartphone; with fraud accounting for 40% of all crime there are many who are frightened of being scammed; over a million people who don’t have a bank account, and almost a million people in the UK live with dementia. Even mainly digitally savvy consumers find it easier to budget with cash. We are certainly not ready to become a cashless society.’
Since then, bank companies and the LINK ATM business have formed Cash Access UK. This is a non-profit company aiming to ensure cash is available where, and as long as, necessary. A positive development including starting banking hubs, but we and others will definitely be staying on the case.
As Ms Ceeney said in reflections on the review last year: ‘Protecting access to cash for some of the most vulnerable people in society has never been more important….’