Banks to Roll Out Coin-Enabled ATMs Across the UK

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.

Coin-enabled ATMs are set to be introduced across the UK by banks in response to new regulations.

The Financial Services and Markets Act, which came into effect in September, mandates banks to ensure that businesses and the public can continue to 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, offer 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.

“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,” said Gareth Oakley, chief executive of Cash Access UK, the not-for-profit organisation responsible for overseeing the alternative banking services.

Since June, 69 note-only ATMs have been installed in areas affected by bank closures, processing over £2 million in deposits.

At least 200 ATMs are expected to be deployed, with additional coin-enabled machines set to launch by mid-2025. However, Oakley acknowledges the complexities involved in 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,” he explained.

The Financial Conduct Authority (FCA), which consulted on the changes last year, received minimal opposition to the requirement for coin services.

To support the provision of accessible cash services, ATM providers will be permitted to charge businesses for coin transactions, according to an FCA spokesperson.

“Small businesses are the lifeblood of the economy, and many still rely on coins,” the spokesperson added.

The expansion of cash access points comes amid the rapid closure of traditional bank branches.

Lloyds Banking Group recently announced plans to close 136 branches by March 2025, citing a shift towards digital banking.

According to consumer group Which?, UK banks and building societies have shut 6,266 branches since 2015, an average of 53 closures per month.

Despite this, Oakley anticipates the need for over 350 banking hubs to meet demand, with the latest hub opening this week in Holt, Norfolk, and another set to open in March in Skegness, Lincolnshire.

“We are talking about a huge number of communities that are losing their last bank branch and will have no access to cash services within a reasonable distance,” Oakley said.

“The banking hubs are a really important part of the solution, but they are not the only part. We need a combination of solutions, including ATMs, to ensure that everyone has access to cash.”