From: RegTech Analyst
The Financial Conduct Authority (FCA) has finalised its expectation for firms when they consider closing branches or ATMs, or converting a free-to-use ATM to pay-to-use.
Banks, building societies and credit unions are now expected to keep the FCA informed of any plans for closures or conversions in good time before any final decision is made.
Moreover, companies are also required to provide an analysis of what the customers in the area need and what the impact of closing ATMs would be on those customers.
If a firm decides to implement its closure or conversion proposals, it will be expected to clearly communicate information about this to its customers no less than 12 weeks before the proposals are implemented.
“Although closures or conversions are decisions for firms to take, it is important they implement these decisions in ways that are fair to their customers,” said Sheldon Mills, interim executive director of strategy and competition at the FCA.
Over the past few months there have several reports that the use of cash has dropped as a result of the coronavirus pandemic.
However, Mills argued that just because more people are adopting cashless payment methods to curtail the risks associated with Covid-19, there are still enough people out there who use physical money.
“Even during the pandemic, cash remains essential to many consumers,” Mills said. “The publication of this guidance sets out clearly our expectations on firms and will ensure that firms make it a priority that customers are treated fairly, especially those who are most vulnerable.”
This guidance will come into force on September 21, 2020.
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