The recent CrowdStrike software outage was a big wake-up call. Suddenly, digital payments hit a wall, and cash withdrawals spiked by £6 million that morning, a 30% surge. This highlighted just how essential cash is as a backup when technology fails. It showed that we’re not ready to go fully cashless and that having access to physical currency is still a must for many.
by Ross Borkett, Banking Director
In our increasingly digital world, cash might seem old school, but for many, it’s a lifeline. Whether it’s older people, those in rural areas, or anyone without digital banking, cash remains crucial. It’s also a vital tool for budgeting, especially important as the cost of living remains an everyday struggle for many, recent industry figures highlight that 1.5m people primarily use cash, the highest in 4 years. Since 2015 5,987 banks and building societies have closed or are scheduled to close, at a rate of around 54 each month. In 2023 alone, 645 branches shut their doors, leaving some without easy access to cash.
That’s why Post Office is proud to be a key player in keeping cash accessible across the UK. In 2023, over £10 billion worth of cash was withdrawn from Post Office counters and £29 billion worth of cash was deposited. Our branches are more than just places to send parcels or buy stamps; they’re a vital part of the nation’s cash infrastructure where people can manage their money. In May 2024 alone, we handled a record-breaking £3.57 billion in cash deposits and withdrawals, topping the previous record set just the previous month.
This is all thanks to our Banking Framework, our partnership with over 30 banks, building societies, and credit unions, which lets 99% of UK banking customers access their accounts at any Post Office. With 99.7% of the UK population living within three miles of a branch and 4,000 branches open seven days a week, we’re making sure that cash remains accessible for everyone.
Banking services are available right across the Post Offices network, but it’s not just about convenience for customers; they boost footfall and increase what customers spend in-store, and the fees Postmasters receive are a crucial revenue stream for their businesses. That’s why we are ensuring the work Postmasters do in this area is recognised and remunerated. We’re also investing in automation to speed up transactions across our busiest branches.
Postmasters are the Post Office, and a vital part of their local communities. Their commitment goes beyond providing essential services; they are trusted and familiar faces for many customers who rely on their local Post Office for many everyday needs. Postmasters are often a first point of contact for customers seeking assistance with banking services, postal needs, or simply a friendly conversation. Their knowledge and dedication, and their role in their communities is what makes Post Offices so important.
Post Offices continue to be community hubs, with Postmasters at their heart, building loyalty and trust. Banking services support local business’s financial needs, and strengthen the relevance and sustainability of Post Offices and retailers in a rapidly changing high street.
We’re committed to keeping our free-to-use ATMs across the UK and ensuring that physical cash remains accessible for everyone. Research by Public First, commissioned by the Post Office, shows that our branches bring around 400 million extra visits to local businesses annually, generating about £1.1 billion for high street economies.
As digital transactions grow, the need for cash accessibility doesn’t just disappear. We’re here to support not only financial inclusion but also the overall health of our high streets. Cash is far from dead and we’re here to ensure it’s accessible to all.