Note to Self: Brits using cash machines to save rather than spend, new data shows

People are putting more money into cash machines than they are taking out according to data¹ from Nationwide Building Society.

Nationwide has 1,350 ATMs located across the UK either inside or outside its branches, all of which are free to use. In 2019, close to two thirds (62%) of the Society’s multi-use ATMs at its branches accepted more cash than they dispensed, rising to more than nine in ten (91%) so far in 2020, with the number of cash deposit transactions doubling in the last six years.

While cash withdrawal volumes have declined over the last few years, the Society’s ATMs offer an expanded range of services – from printing mini statements and paying bills to changing PINs and paying in cash and cheques. This year, based on data up to the end of August, the usage of those additional services has overtaken the number of cash withdrawals for the first time.

When it comes to depositing cash, over the last five years (2014 to 2019) the Society has seen a 97 per cent increase in the number of times Nationwide’s ATMs are used to deposit cash into accounts.

Impact of lockdown on ATM usage:

At the height of lockdown, the amount of cash dispensed almost halved (-46%) between April and June compared to the same period in 2019. The average value of withdrawals remained broadly consistent throughout 2019, hovering around £85. However, in 2020 there was a notable spike in the amount members and customers withdrew as lockdown kicked in. From March this year, the average amount people withdrew rose by as much as £35 per visit (see table below).

In terms of the total amount of cash withdrawn, 2020 has seen significant month-on-month fluctuations. Between March and April, the amount of cash dispensed fell by 45.7% in 2020 (versus a fall of 2.5% at the same point 2019), while between June and July this year, the amount of cash withdrawn rose 23.3% (versus a 6.7% rise during the same period last year).

Locations

Nationwide’s ATM data reveals the busiest cash machines in the UK are in London, specifically east London market towns. Based on the number of cash withdrawal and non-cash withdrawal transactions made, Dagenham, Upton Park and East Ham have seen the highest amount of ATM usage.

Top five locations for cash withdrawals: Dagenham, Upton Park, East Ham, Wealdstone, Small Heath

Top five locations for other transactions: Upton Park, Dagenham, East Ham, Bedworth, Handsworth

Jay Bourne, Senior Manager – ATM and Cash Services at Nationwide Building Society, said: “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. Our data shows people are clearly taking advantage of this enhanced technology as we are increasingly putting money away rather than taking it out. Far from spelling the end for cash, it shows that the future of money management is constantly evolving, with something for everyone. Managing our money at an ATM, while offering limited services, offers speed and convenience, while also being easy to use.”