Nationwide, the UK’s largest building society, has issued an important update on the growing use of cash in the country. For the third consecutive year, the organisation has recorded an increase in cash withdrawals, with the average amount reaching £112 per transaction in 2024. This trend, which reverses a decade-long decline, reflects the pressures of the ongoing cost of living crisis and the enduring importance of physical money for household budgeting.
A Return to Physical Money
In its report, Nationwide notes a marked rise in cash withdrawals, especially during the week leading up to Christmas 2024. During this period, £97.9 million was withdrawn across its 1,260 ATMs, the highest weekly total since before the pandemic.
“Prior to 2022, the number of cash withdrawals at Nationwide had been steadily declining from its 2014 peak. This fall was most pronounced when the pandemic struck, when withdrawals dropped by more than 40 per cent in a year (26.4m in 2020 v 44.5m in 2019),” the update reveals.
The resurgence of cash use highlights a shift in consumer behaviour, as households increasingly turn to tangible money to manage their budgets and avoid overspending.
Cost of Living and Cash Budgeting
The ongoing cost of living crisis has been a key factor in the renewed reliance on cash. With rising energy bills, food prices, and housing costs, many families are adopting stricter budgeting practices. Otto Benz, director of payments at Nationwide, explains:
“The rising cost of living continues to impact people and many are opting to budget with physical money to avoid getting into debt.”
For many, cash offers a simple, tangible way to track spending, ensuring they stick to strict budgets without the risk of accruing debt from card payments or credit.
The Role of Branches and ATMs
Nationwide’s strong branch network has played a vital role in meeting the increased demand for cash. Unlike many major banks, which have been closing branches and ATMs across the UK, Nationwide has committed to maintaining its physical presence.
Benz elaborates:
“Nationwide has the largest branch network in the UK, which allows us to support customers who want access to cash, whether that be from our ATMs or over the counter.
“The major banks have closed branches in towns and cities across the country taking away many of the free ATMs that people rely on, which is why the biggest rise in withdrawals comes from non-Nationwide customers. The resurgence of cash shows why we need to continue having a physical presence on the high street, enabling customers to access their money on their terms, whether digitally or in branch.”
Nationwide’s decision to maintain its branches until at least 2028 demonstrates its commitment to serving both its members and the wider community, particularly in areas where bank closures have left significant gaps in access to financial services.
The Broader Implications of Rising Cash Use
This return to physical money raises important questions about the future of banking in the UK. While digital payments continue to grow in popularity, cash remains a crucial tool for millions of people, especially in times of financial strain.
Nationwide’s update highlights the resilience of cash as a budgeting method, even in a world increasingly dominated by digital solutions. As Benz’s comments suggest, the organisation’s commitment to both digital and physical services ensures that it can meet the diverse needs of its customers.
The Future of Banking and Cash Accessibility
Nationwide’s data provides meaningful insights into how Britons are adjusting to the cost of living crisis. By preserving its extensive branch network and supporting the renewed reliance on cash, the organisation is proving instrumental in helping households manage through these challenging times.
As discussions surrounding the evolution of banking and the role of cash persist, Nationwide’s dedication to accessibility and adaptability ensures it continues to serve as a reliable resource for its members, whether their preference lies in digital transactions or traditional cash handling.
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