Banks are set to introduce coin-enabled ATMs across the UK as they grapple with new regulations mandating access to cash services for communities affected by branch closures.
Under the Financial Services and Markets Act, which came into force in September, banks must ensure that businesses and the public can deposit and withdraw coins if a branch closure leaves a community without these services. While Post Office upgrades and multi-bank banking hubs—of which there are now 110—are existing solutions, the inability of free-to-use multi-bank ATMs to handle coins has prompted banks to commission specialist cash machine providers, including NoteMachine and NCR, to develop larger, more sophisticated models.
Gareth Oakley, chief executive of Cash Access UK, the not-for-profit organisation responsible for alternative banking services, said the move marks a significant industry shift: “There is nothing out there really where you can pay [coins] in and take it out in this way. This will be a first to do it at this scale.”
Since June, 69 note-only ATMs have been installed in areas hit by bank closures, processing more than £2 million in deposits. At least 200 are expected to be deployed, with additional coin-enabled machines set to launch by mid-2025. However, Oakley acknowledged the complexities of handling coins: “Being able to dispense and deposit coin requires a much higher sophistication of kit, a much bigger space than your general ATM and the cash in transit services become a lot more expensive.”
The Financial Conduct Authority (FCA), which consulted on the changes last year, received little opposition to the requirement for coin services. It has permitted ATM providers to charge businesses for coin transactions, reinforcing the need for accessible cash services. “Small businesses are the lifeblood of the economy, and many still rely on coins,” an FCA spokesperson said.
The expansion of cash access points comes as traditional bank branches continue to disappear at a rapid rate. Lloyds Banking Group recently announced plans to close 136 branches by March 2025, citing a shift to digital banking. According to Which?, UK banks and building societies have shut 6,266 branches since 2015—an average of 53 closures per month.
Despite this, Oakley predicts that more than 350 banking hubs will be needed to meet demand, with the latest hub opening this week in Holt, Norfolk.
