Innovating to Meet Changing Consumer Needs in the UK

LINK’s extensive free-to-use network is under pressure as consumer usage shows signs of dropping and costs to issuers are rising. How can innovation maintain the great universal access to cash

position that LINK delivers for UK consumers? LINK’s CEO John Howells sets out how innovation in both the location of machines and the services that they offer are part of LINK’s approach.

John Howells – CEO, LINK

A cashless society?

“Diebold Group, a prominent New York firm

of management consultants, is satisfied

from a preliminary survey that, to all intents

and purposes, America will be a “cashless”

society inside the next decade and that

Europe could follow suit five or ten years

later”.

- FT, 2nd August 1966

Consumer demand for cash is still high

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Annual Cash Withdrawals (millions)On-us from Payments UK

On-us and Other LINK FTU LINK PTU

£0

£200

£400

£600

£800

£1,000

£1,200

2000 2002 2005 2007 2009 2011 2013 2015

Total Network Costs Including On-Us (£millions)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ATM Numbers Over Time

Branch

Remote FTU

Remote PTU

All ATMs by Location Type

Financial Inclusion – a key requirement for consumer groups, regulators, government, and LINK Members

• Programme initiated in 2007.

• Has seen over 1,900 areas resolved with new free-to-use ATMs.

• Strong support from LINK Consumer Council, and groups like Citizens Advice, Consumer Focus Northern Ireland and Toynbee Hall.

• Website Tool gives details of target locations and nearby ATMs.

“Retail location specialist CACI estimates there are at least 3,500 bank branches that are at risk of closure.”