Nationwide data has shown that cash withdrawals have risen for a third consecutive year since the pandemic. The building society claimed the surge was caused by the high cost of living, which is leading many people to budget.
The group recorded around 32.8 million cash withdrawals from the 1260 ATMs at its 605 branches last year – a 10% increase on 2023. The average amount of cash taken out on each withdrawal from Nationwide ATMs was £112 last year.
The busiest time of the year for cash withdrawals was the week before Christmas (w/c 16 December) where £97.9m was withdrawn, up 1.8% on last year. This is the highest amount dispensed in a week since pre-Covid. The week leading up to Black Friday (w/c 25 November) saw £85.3m withdrawn – a 12% year-on-year increase and the second highest weekly dispense since pre-Covid.
Prior to 2022, the number of cash withdrawals at Nationwide had been steadily declining from its 2014 peak. This fall was most pronounced when the pandemic struck, when withdrawals dropped by more than 40% in a year (26.4m in 2020 v 44.5m in 2019).
ATM usage has also risen due to bank branch closures, which has seen vital free services being removed from high streets up and down the country. This has led to a 16% increase in withdrawals from non-Nationwide customers and a four percent increase from Nationwide customers looking to access cash, as unlike the major banks, it hasn’t closed significant numbers of branches in recent years. Nationwide has reaffirmed its commitment to communities by continuing to offer face-to-face service, with its Branch Promise meaning everywhere it has a branch; it will remain until at least 2028.
The biggest increase in cash withdrawals in Scotland were recorded in Cupar, Fife, which saw a 66% increase. This placed it in 7th position in the building society’s list of top 10 biggest increases in the UK. Top of the list was Chiswick, West London where cash withdrawals were up 140%).
The rise in multi-use ATMs mean that cash withdrawals are only part of the picture. Nearly half (43%) of all transactions are for other services – from printing mini-statements and paying bills and changing PINs to paying in cash and cheques, claimed Nationwide.
When it comes to depositing cash, over the last five years (2020-2024) Nationwide has seen a 21% increase in the number of times its ATMs are used to deposit cash into accounts with the average amount deposited rising to £278 – 0.5% per cent increase on five years ago. However, the amount of cash being deposited is down four percent compared to the peak seen in 2022.
Otto Benz, Director of Payments at Nationwide Building Society, said: “The rising cost of living continues to impact people and many are opting to budget with physical money to avoid getting into debt. Nationwide has the largest branch network in the UK, which allows us to support customers who want access to cash, whether that be from our ATMs or over the counter. The major banks have closed branches in towns and cities across the country taking away many of the free ATMs that people rely on, which is why the biggest rise in withdrawals comes from non-Nationwide customers. The resurgence of cash shows why we need to continue having a physical presence on the high street, enabling customers to access their money on their terms, whether digitally or in branch.”
Volumatic, which makes cash handling solutions, highlights that businesses that have shifted to cashless models may be losing customers who prefer the option to pay with cash, underscoring the need for payment flexibility in a challenging economic climate.
Mike Severs, Sales & Marketing Director at Volumatic said:
“The recent figures show consecutive annual increases since the pandemic. With cash usage continuing to grow year on year, it’s evident that cash is no longer in decline. Businesses must adapt to this trend by maintaining the option to accept cash and promoting it to customers. Investing in cash handling technology can streamline operations, improve efficiency, and reduce costs.
“Those who have moved to card-only payments should reconsider, as they risk losing customers and revenue. We have seen many retailers and quick-service restaurants reintroducing cash payments with significant success, boosting profits and enhancing customer satisfaction.”
