New data from Link, the ATM network, has revealed that the total amount withdrawn from ATMs in the UK has increased for the first time in five years, contradicting the theory that the COVID-19 lockdowns would lead to a decrease in the use of cash according to an article on Yahoo Finance.
In 2022, customers withdrew a total of £83 billion from cash machines, up from £79 billion in 2021 and £81 billion in 2020. This marks the first year-on-year increase in the total amount withdrawn from cash machines since 2017. This is also in line with data from Nationwide Building Society, which showed withdrawals from its machines had increased for the first time in 13 years.
The data also showed that overall cash usage remains down compared to 2019, when £115 billion was withdrawn across the UK, and overall transaction levels are down 40% from that time. However, the average withdrawal per person over 16 in the UK was more than £1,500 across the year. This suggests that while fewer people are visiting ATMs, those who do are withdrawing more money per transaction.
According to Graham Mott, of Link, the increase in ATM withdrawals can be attributed to the fact that there were no lockdowns in 2022. He stated, “I think the main reason ATM use went up last year was because there were no lockdowns. There was another lockdown in early 2021, which naturally meant people visited ATMs less.” He went on to say, “However as the pandemic begins to feel more of a distant memory, it is possible some people are beginning to go back to their pre-Covid habits; shopping more in-store, going into the office more often and visiting shopping centres to look for bargains, all things which mean we may be using more cash in the short term, even if cash is still well down on pre-pandemic levels”.
The data also showed that national cash habits have changed, with customers visiting ATMs less often but taking out more each time. The average withdrawal per transaction is up from £68 pre-pandemic to over £80 in 2022, increasing to almost £90 in the month of December. This indicates that people are less likely to make frequent, small withdrawals and are instead opting for fewer, larger withdrawals.
Despite the shift towards digital payments and the predictions of the death of cash, the data also showed that “most people haven’t gone completely cashless”. Mr. Mott said, “For some people, they’ll use cash for specific things like parking, at the convenience stores or paying friends and family, whereas some consumers will use it for everything, especially if they’re on a budget or fixed income.”
The data also showed that the overall number of free-to-use ATMs increased last year, however the overall number of cash machines was down as a result of a decrease in the number of paid-for ATMs. There are now 51,253 cash machines in the UK, compared to 52,547 in 2021. Rishi Sunak, the Prime Minister, was urged last month by MPs to take action to protect free access to cash, after it was found that a quarter of free ATMs had been scrapped in the last four years. In response to this, Link runs an ATM community request initiative, where members of the public can contact the organization if their local area lacks sufficient access to cash. More than 150 free-to-use community cash machines have been installed as part of the scheme so far.
