INDUSTRY OUTLOOK
customers away . SMBs deserve to receive quality support so that they – and the communities they are part of – can thrive .
At the other end of the scale , relying solely on digital payments exposes businesses and citizens to the vulnerabilities of technology such as cyberattacks , network outages and technical glitches . A technical glitch can bring a bank to its knees – just look at HSBC in 2023 . Glitches and security breaches can temporarily take online banking services offline and even drive fraud , allowing customers to withdraw money they don ’ t have . Just imagine if our entire society went cashless . One glitch would disrupt the entire financial ecosystem ! Therefore , as digital payment methods continue to gain traction , banks and building societies must step up to ensure that the needs of local communities and economies are met .
Securing tomorrow ’ s transactions : Practical steps to safeguard access to cash
With more than half of all payments in the UK being made with debit cards , the time to safeguard access to cash is now . However , to ensure the financial landscape remains inclusive , a multi-faceted approach is required .
Banks and building societies need to understand exactly who still relies on cash and ensure that those customers receive effective support . This is vital now that Consumer Duty regulations require FS firms to provide every consumer – even those who only use cash – products that meet real needs . But , without a 360-degree view of consumer spending , this is impossible . FS firms need granular insights into each customer account to identify who still depends on cash and ensure they are catered for , otherwise they risk non-compliance fines and reputational damage . The challenge is that many banks do not have the data on which customers use cash as the main payment method .
One solution is to place banking facilities in non-banking environments in the community . Take Visa , which as part of a scheme with its partner banks , incentivised retailers to offer cashback in regions where consumers struggled
42 www . intelligentfin . tech