BANKS HAVE CALLED for fewer restrictions on ATM machine usage to increase access to cash in society. 

Disproportionate responsibility on retail banks to provide cash points and a fear of competitive disadvantage were among the concerns raised during a discussion on the Access to Cash bill at the Oireachtas Joint Committee on Finance today.

In his opening statement, Brian Hayes, the Chief Executive of the Banking and Payments Federation of Ireland (BPFI), said there’s been a ”significant change” in the payments landscape, with more people using card and contactless methods.

Recent figures from the Central Bank of Ireland show the value of ATM withdrawals has fallen by almost a third since the pandemic, while contactless payments have more than doubled.

Hayes argued that cash is particularly important to “the most vulnerable in society”, and those trying to budget during the ongoing cost of living crisis.

Keeping the number of ATMs at a sufficient level to ensure accessibility should be a “shared responsibility”, rather than solely that of Allied Irish Banks, Bank of Ireland, and permanent tsb.

“[The three banks] only control around one third of the general infrastructure. All other providers who make up the remaining cash access infrastructure, including An Post, Independent ATM deployers and Credit Unions, are excluded,” Hayes explained.

“In a scenario where any one of these providers withdraws an ATM or ‘bricks and mortar’ counter service, leading to a breach of the cash access criteria, under the current proposals it will be the responsibility of the retail banks to remedy and replace this service, even in circumstances where this is not commercially viable.”

This places the retail banks at a “competitive disadvantage”, he argued, which may be sustainable now as the sector thrives, but issues could emerge in future when the landscape is more challenging.

The group also stressed the importance of expanding the definition of an Access to Cash point, to include retail branch locations, branch ATM’s, An Post locations, Independent ATMs (IAD’s), Credit Unions, and also cashback services.

The European Union is currently looking at making changes to legislation that would let retailers offer cashback without customers having to purchase anything.