Nationwide Building Society has recently alerted its millions of customers about rising cash withdrawal trends, with the average amount withdrawn from its ATMs reaching £112 as of 2024. Amid the backdrop of the continued cost of living crisis, the world’s largest building society shared data indicating significant cash usage growth over the past year.
The week leading up to Christmas, from December 16 to December 23, saw the highest cash dispensed since before the Covid-19 pandemic, with total withdrawals amounting to £97.9 million from Nationwide’s 1,260 ATMs spread across 605 branches.
This surge is particularly noteworthy as it marks the third consecutive year of rising cash usage, after years of decline leading up to 2022. According to their statistics, prior to this trend, cash withdrawals had been steadily decreasing from their peak back in 2014. This decline was most acute during the pandemic, where annual withdrawals plummeted by over 40%, dropping from 44.5 million withdrawals in 2019 to 26.4 million in 2020.
According to Otto Benz, director of payments at Nationwide, the shifts pattern is influenced largely by the current economic climate. He stated, “The rising cost of living continues to impact people and many are opting to budget with physical money to avoid gettinginto debt. Nationwide has the largest branch network in the UK, which allows us to support customers who want access to cash, whether it be from our ATMs or over the counter.”
Nationwide attributed part of the uptick in ATM usage to the closures of several bank branches. This was underscored by their pledge to maintain all current branches open until at least 2028, thereby ensuring customers retain access to cash during these challenging times.
This trend is not only seen among Nationwide's customers; the increase has also been noted among users of non-Nationwide accounts, which saw the most significant growth with withdrawals rising by 16%. Nationwide remarked this resurgence of cash emphasizes the necessity for physical banking presence on the high street, allowing customers to withdraw cash conveniently.
The report also emphasized geographical variations with significant increases like Chiswick, West London, experiencing a staggering 140% uptick, and Shotton, Flintshire, reflecting a notable 115% rise, showcasing the different regional responses to the growing cash demand.
These findings speak not only to bank practices and consumer behavior but also to how communities are adapting to changes brought upon by economic pressures. Nationwide's financial update reflects its efforts to respond to the needs of customers who prefer tangible transactions over digital forms.
Despite the drive toward digital banking, trends related to budgeting techniques such as 'cash stuffing'—where individuals use cash to allocate spending across various expense categories—are gaining traction, hinting at the complexity of modern finance attitudes.
Benz reiterated the importance of having ATMs available: “The major banks have closed branches in towns and cities across the country taking away many of the free ATMs people rely on, which is why the biggest rise in withdrawals has come from non-Nationwide customers.” This highlights the shifting dynamics of cash accessibility and the challenges posed by recent banking strategies.
Interestingly, the most substantial action around cash withdrawals noted was not just at the holiday season. For example, during the week leading up to Black Friday, the amount withdrawn reached £85.3 million, marking over 12% rise from previous years, indicating broader spending trends tied closely to traditional retail events.
Nationwide’s increase reflects not only personal habits but also broader societal changes as technology and economics interplay within daily life. With various factors driving these shifts, it becomes clear the demand for cash persists, and customer needs must be continually reassessed.
With customer habits rapidly changing, the emphasis on maintaining and promoting accessible cash services could help address the financial needs of many who are wary of debt and struggling with the current economic pressures.
The modernization of banking must also take care not to alienate customers who thrive on traditional banking methods. Nationwide’s pledges suggest they are aware of these challenges and committed to meeting their customers’ needs now and going forward.