New research suggests that Aberdeen South is the area of Scotland set to go cashless the quickest, with a 36 per cent decline in ATMs between 2018 and 2022, some 36 closures overall. Online trading platform CMC Markets reviewed House of Commons data relating to the number of ATM closures across Great Britain and compared it with population figures to find the number of cash machines per 10,000 people across the country.
West Aberdeenshire and Kincardine was found to have the second highest rate of ATM closures with 30.8 per cent (20) of its ATMs having closed since 2018, while Edinburgh South West was third highest, with a closure rate of 29.9% (32). The average rate of ATM closures was found to be 18.3 per cent between 2018 and 2022 across all areas of Scotland.
West Dunbartonshire was found to have the lowest rate of ATM closures since 2018, with a 4.1 per cent reduction in ATMs, equating to just five closures overall. Falkirk has the easiest access to cash, with 38 ATMs per 10,000 residents - higher than anywhere else in the UK.
20 Scottish Parliamentary constituencies in Scotland on track to go cashless fastest
- Aberdeen South
- West Aberdeenshire and Kincardine
- Edinburgh South West
- Gordon
- Cumbernauld, Kilsyth and Kirkintilloch East
- Edinburgh West
- Paisley and Renfrewshire North
- Edinburgh East
- Edinburgh South
- Glasgow Central
- Glasgow North West
- Edinburgh North and Leith
- Midlothian
- Argyll and Bute
- Na h-Eileanan an Iar
- Glasgow North
- East Kilbride, Strathaven and Lesmahagow
- Dumfriesshire, Clydesdale and Tweeddale
- Glenrothes
- Dundee West
Commenting on the findings, Michael Hewson, chief market analyst at CMC Markets, said: “During the Covid-19 pandemic, consumers were reminded that using digital payment options over cash would allow them to pay for goods and services in a safer manner. Many found this to be more convenient than withdrawing cash, and it appears to have only accelerated the already existing shift towards digital banking.”
He added: “By analysing the rate at which ATMs have closed over the past four years, we were able to see which areas are likely to go cashless first, as well as the areas with the easiest access to cash machines.
“With older generations being more reliant on cash machines, increasing closures of ATMs may exacerbate the digital divide unless banks continue with measures that aim to improve digital literacy.”
By contrast, new data from Nationwide Building Society indicates ATM withdrawals jumped by nearly a fifth last year compared with 2021, marking the first time in 13 years that cash use has increased.
Nationwide used its own data for the findings, which suggests households’ are using physical money to help them budget during the cost-of-living crisis.
The society said more than 30.2 million cash withdrawals were made from Nationwide ATMs last year, marking an increase of 19 per cent compared with 2021.
It said that in recent years, the number of cash withdrawals had been steadily declining, with a particularly sharp drop seen at the start of the coronavirus pandemic.
Otto Benz, director of payments at Nationwide Building Society, said: “For the first time in years we are seeing a natural rise in cash withdrawals as people return to using cash to help avoid getting into debt from the rising cost of living.
“ATMs play a vital role in society, enabling people to easily access cash. However, over the years, they have offered greater capability for people to manage their money, whether that’s checking their balance or paying a household bill."
He added: “Far from the end for cash, it shows that the future of money management is constantly evolving. Taking advantage of the additional services that ATMs provide can be a speedy and convenient experience.”
Nationwide has pledged not to leave any town or city in which it is based without a branch until at least 2024.
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