Is cash king?

The fundamental shift in retail banking - the FCA's concerns and approach

by Fatima Jama

The past decade has seen significant change in the way consumers pay and the way businesses accept payments. The volume of payments in the UK that do not involve cash rose from 46 per cent to 86 per cent from 2002 to 2022. This rise has been driven by innovation in payments systems and changes in customer behaviour and it accelerated during the pandemic. Consumer demand, new technologies and the cost of accepting cash payments are driving the shift to digital banking. Digital payments can decrease cost and increase convenience and efficiency for both businesses and consumers.