The UK is witnessing a remarkable resurgence in cash usage, with ATM withdrawals increasing for the third consecutive year, according to new data from Nationwide. Despite the nation's gradual shift towards a cashless society, the number of people primarily using notes and coins for daily spending has risen. This trend is largely attributed to the growing appeal of budgeting techniques like "cash stuffing" amidst the ongoing cost-of-living crisis.
The most significant increases in cash withdrawals were reported in Chiswick, west London, and Shotton in Flintshire, Wales. These areas have seen a notable rise as bank branch closures push more individuals towards ATMs for their cash needs. Nationwide revealed that nearly 33 million withdrawals occurred from its ATMs last year, marking a 4.6% increase compared to 2023 and a substantial 29% jump from 2021, when there were 25.4 million withdrawals.
Nationwide also reported that withdrawals by non-Nationwide customers surged by 16%. On average, individuals withdrew £112 per transaction last year. The busiest period for cash withdrawals was the week before Christmas, during which £97.9 million was dispensed. This amount represents the highest weekly total since the pre-Covid era.
"This is the highest amount dispensed in a week since pre-Covid," – Nationwide
The trend towards increased ATM usage contrasts sharply with figures from 2020 when payments made using notes and coins plummeted by 35%. Despite technological advancements and a push towards digital transactions, cash remains a vital component of the UK's financial system, especially in regions experiencing limited access to banking facilities.