Have you been to an ATM this week? (and other payment stories)

Issue 66a | 10 November 2020

Welcome to issue 66 of Payments, Payments, Payments, my newsletter centres on getting to grips with the UK’s retail payments landscape with exclusive payment insights, hot topic briefings and fundamentals unpacked. 

If you enjoy Payments, Payments, Payments please spread the word! It really makes a difference when you recommend this newsletter to others.

Share Payments, Payments, Payments

Have you been to an ATM this week?

The UK’s latest ATM habits:

  • Sunday’s (1 November) ‘dash for cash’ continued on Monday (2 November) which was the busiest Monday for ATMs since March with £238m dispensed.

  • The ‘dash’ tailed off after a couple of days and week ending 8 November saw the lowest weekly volume of ATM transactions since early summer – 29.2 million transactions.

  • The amount of cash being withdrawn per visit is reducing.

  • ATM volumes remained steady last week but still equate to a 38% reduction compared to 2019.

  • Cash withdrawn from ATM’s last week has remained at a reduction of 30% compared to 2019.

This week’s ATM tracker includes analysis of our the UK’s cash based Lockdown habits - including this except graphic from LINK:

Source: LINK

For more visit: ATM Tracker.

Don’t forget to check out our other payment landscape trackers:

  • Payments Tracker: Providing a monthly round up of volumes and values of retail payments in the UK.

  • Switching Tracker: Providing a quarterly update in the Current Account Switching Service performance dashboard.

  • Developments tracker focussing on Pay.UK, PSR, BoE and HMT: Providing a fortnightly briefing of payment related developments at Pay.UK, the Payments System Regulator, the Bank of England and HM Treasury.

Access to Cash - Mapping the territory

Access to cash across the UK is more than just a numbers game. While analysis based on the number of bank branches and ATMs is significant it cannot be the only measure considered by industry and policy-makers.

The real experience of consumers will depend on other important factors. Community needs for cash may differ according to the different socio-economic make-up of local populations, travel and consumption patterns, and access to alternative payments services. 

A new research project by the University of Bristol, the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) is aiming to map this complex reality across the UK and enlighten future policy options. For the FCA and PSR, this builds on their initial work to create a first interactive access to cash dashboard during the Covid crisis, as described in a recent Insight article.

Read: Access to Cash - Mapping the territory.

The pound in your pocket

Almost 50 years ago (November 1967) the then Prime Minister, Harold Wilson, was facing a crisis and was defending his decision to devalue the pound saying it will tackle the “root cause” of Britain’s economic problems.

It does not mean that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.

Prime Minister Harold Wilson

Much has happened to our pound (and country) over the last 50 years but this led me to think about how do we spend the ‘pound on our pocket’ that Harold Wilson was so keen to defend.

Today, the ‘pound in our pocket’ will be both physical (cash) and digital – for the purposes of this rough and ready calculation let’s assume that in our digital ‘wallet’ we have a debit card, a credit card, make use of Bacs’ Direct Debit and Direct Credit, pay people with Faster Payments, some of us might use a cheque every now and again and, perhaps, once or twice in our lifetime make a retail CHAPS payment.

More: The Pound in your pocket.

Webinar: Modernising Global Corporate Payments to Prevent Fraud.

Kyriba: 12th November 2020 - 9.30am GMT

These last few months have highlighted that Payments Fraud continues to be a major problem, with fraudsters quick to leverage the global pandemic, with the amounts involved considerable.

In this webinar Kyriba’s Paul Simpson will be joined by Helen Alexander from SWIFT and James Bushby from MasterCard, to explain what institutional payment fraud is, with a specific focus on the technology and processes that treasury and finance teams can employ to minimise risk.

The webinar will cover:

  • What institutional payment fraud is and the internal processes and technology to consider, with SWIFT.

  • How a payment hub mitigates against fraud for corporates, with Kyriba.

  • Introduction to how MasterCard is helping fight financial crime.

Register for Thursday’s webinar at: Modernising Global Corporate Payments to Prevent Fraud.

In brief

Shorts:

  • We're all getting bigger! Bulk upload smart requests for payment with OrdoTutorial.

  • Trilo is the simplest way to pay - just select your bank, tap pay and get a Boost every time - product hunt.

To place an advert direct: purchase now.

The New Economics of Banking - How to Make Money in a Zero Interest Rate Economy

Manifesto Growth Architects believe those who succeed in the New Economics of Banking...

🙋🏼‍♂️ Know the role they want to play for their customers, and put this at the heart of everything they do

📰 Go beyond transactions and drive engagement, learning from sectors such as media

📊 Build data and technology capabilities to support real-time orchestrated journeys, centred around the customer

🔎 Identify leading (not lagging) metrics that give them confidence in their progress

🕹 Enhance products and offerings through smart customisation, allowing choice whilst controlling costs to serve

💫 Will focus on incremental growth, that can be measured through customer metrics. If you are still focussing on big tech or experience transformations you will be left behind...

🚀 Are starting now. We are at the perfect convergence of eroding value chains, new competitor threats, and changing customer attitudes.

Download Manifesto’s report: The New Economics of Banking - How to Make Money in a Zero Interest Rate Economy.

Everything you wanted to know about RTGS but were afraid to ask.

Citi's Tony McLaughlin talks to John Jackson from The Bank of England about its Real Time Gross Settlement (RTGS) program.

The Future Will Be Tokenised

Dollar bills and Bill’s dollars will become digital assets running over the same rails - a Forbes piece by Dave Birch. Read: The future will be tokenised.

Talk Money Week

It's #TalkMoneyWeek over at Starling Bank - every day this week they will talking all things money and looking at:

  • How the media speaks about money differently to men and women

  • Why talking about money is important

  • How to talk to your kids about money

  • How to manage your pension.

Don’t miss out - head over to Starlings Twitter feed.

Content and Promotions

Last week we’ve also launched an option to place content, promotions or adverts both in the Payments, Payments, Payments newsletter and on NortheyPoint.com - for more info check out Content & Promotions.

Or purchase a content / promotion spot or place an advert direct: purchase now.

Read, subscribe and share

Getting to grips with the UK’s retail payments landscape can seem a complex and daunting task.

The Payments, Payments, Payments newsletter from Mike Chambers at Northey Point explores a wide range of the UK’s payment news including: Open Banking, Request to Pay, Direct Debit, Confirmation of Payee, Bacs, CHAPS, Faster Payments, LINK, cash, cards and cheques and unpacks the eco-system that supports the operation of these systemically important payment systems.

The newsletter is an independent and informed insight into the UK’s payments landscape – exclusive payment insights, hot topic briefings and fundamentals unpacked. 

Join the rapidly growing number of subscribers and navigate the UK’s payments landscape with former Bacs CEO Mike Chambers.

Share

Exploring Central Bank Digital Currencies in manageable chunks

Many institutions are actively researching and developing proofs of concept for Central Bank Digital Currencies but what are CBDC’s and how will they play their part in the future of money?

But first, what is a central bank digital currency?

Let Marc Rubenstein explain:

So what is a central bank digital currency?

It’s electronic, it exists as a digital object, and it’s backed by a central bank.

So it’s like cash, except it’s electronic; and it’s like Bitcoin, except it’s central bank backed.

In another new development I have launched the Digital Fiat newsletter. 

Digital Fiat is an independent insight into the global development of CBDC’s – exploring developments in manageable chunks with a special focus on how a CBDC might emerge in the UK.

Subscribe to Digital Fiat

Mike