As the cost-of-living crisis continues to impact UK households, Nationwide‘s latest data reveals a surprising trend – a big increase in cash usage.
The building society, known for its extensive network of ATMs and commitment to maintaining branches, has observed a noticeable upswing in ATM use, especially in locations where it remains the only banking service available.
Unlike major banks, which have been closing numerous branches, Nationwide has pledged to keep its branches open until at least 2026, underlining its Branch Promise. This commitment to physical banking services is reflected in the data from Britain’s largest building society.
In the last year, about 31.4 million cash withdrawals were made from Nationwide’s network of over 1,200 ATMs, marking a 4% increase from 2022. The average withdrawal amount was around £105, a modest increase from the previous year but still 28% higher than pre-pandemic levels.
This resurgence in cash usage marks the second consecutive year of increased ATM activity, reversing a 13-year trend of declining cash withdrawals. Otto Benz, Nationwide Building Society’s Director of Payments, emphasized the crucial role ATMs play in the community. He noted that Nationwide’s extensive branch network allows them to support customers’ cash needs and pointed out the diminishing number of free-to-use ATMs due to large bank closures.
Benz also highlighted the multifunctionality of ATMs, stating that nearly half of the transactions are for non-cash withdrawal purposes, such as depositing money, checking balances, or paying bills. This versatility shows the sustained relevance of cash and physical banking services.
In towns where Nationwide has become the last remaining branch, ATM usage has skyrocketed, with increases averaging 55%. Notable surges were seen in Twickenham (154%), Redruth (144%), and Purley (92%). Interestingly, the majority of these increased withdrawals were from non-Nationwide customers, underscoring the societal reliance on accessible cash services.
Nationwide has also seen a 10% rise over the past five years in the use of ATMs for cash deposits, with the average deposit amount climbing to £277, a 29% increase from five years ago.
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