Nationwide, a prominent building society in the UK, has observed a notable increase in ATM cash withdrawals for the third consecutive year. As the cost of living remains elevated, many individuals are turning to physical currency as a budgeting tool.
In the past year, Nationwide recorded approximately 32.8 million cash withdrawals across its network of 1,260 ATMs located in 605 branches—representing a 10% rise compared to 2023. The average cash withdrawal amount was £112.
This trend aligns with findings from the British Retail Consortium, which noted that cash accounted for nearly 20% of transactions in 2023, increasing from 18.8% in the previous year.
Otto Benz, Director of Payments at Nationwide, commented, “The ongoing challenges posed by rising living costs are prompting individuals to manage their finances with cash, helping them avoid potential debt.”
Although the current withdrawal figures are significantly lower than the 52.4 million recorded in 2014, they show a marked improvement from the 25.5 million withdrawals during 2021, a period when cash usage saw a sharp decline due to the Covid-19 pandemic.
Nationwide also attributes the surge in ATM withdrawals to the increasing number of bank branch closures. There was a 16% rise in withdrawals conducted by non-customers, contrasting with a more modest 4% increase among Nationwide members.
Benz emphasized the importance of maintaining a physical presence on the high street: “The resurgence of cash highlights the necessity of enabling customers to access their funds in ways that suit them—whether through digital means or in-person at branches.”
Moreover, the rise in multi-functional ATMs indicates that cash withdrawals are only one aspect of their usage; nearly half of all transactions involve various services, including printing mini-statements, paying bills, modifying PINs, and depositing cash and cheques.