Small Business Saturday – Access to Financial Services remains key

Ahead of Small Business Saturday, grassroots, non-commercial campaign, which highlights small business success and encourages consumers to ‘shop local’, Mark Aldred, banking specialist at banking technology company Auriga has urged the financial services industry to include small businesses in the debate about ATM and branch closures.

“Access to financial services is essential to sustain small businesses and help them thrive. This is especially true in rural and small communities where ATM and branch closures have hit hard, and there isn’t the communications infrastructure to support mobile and internet banking. If we want small businesses to thrive we have to give them the support to do so, we can’t leave them out of the debate.

 “Small businesses need to be able to easily access advice and support, as well as having somewhere to deposit cash takings and withdraw money for the till. For small businesses who rely on cash payments, a nearby ATM for customers is essential. Banks are under pressure to make their branch and ATM networks cost efficient, but technology can ease the burden. Modern devices can carry out many business banking functions, from 24/7 deposits to accessing advice over video, whether they are in a branch or an ATM on the high street”

 “While banks have had to adapt to changing consumer habits, the pace of change has left some communities and businesses financially isolated. Unsurprisingly, this has gained the attention of politicians. There are three bills before parliament, scheduled for readings in January, February and March. The industry needs to deliver choice to all customers regardless of how they want to access services, where they’re based or their net worth, whether through a bank branch or an alternative service in the community, and It now seems that banks may be forced to do this by legislation.

“Banks should focus on smarter not smaller branch networks. This could even benefit them in the long run. The right technology can make branches more efficient and be a revenue driver not a cost. Where branches just aren’t viable, free to use ATMs are the second part of the financial lifeline. Today’s ATMs can function as mini-branches, providing key services like opening accounts, applying for loans and managing bills. They are not just cash dispensers.

“The Banking and Post Office Bill, would require banks to provide certain services in small communities, the Banking (Cash Machine Charges and Financial Inclusion) Bill would prohibit cash machine charges and require banks to enable free cash withdrawals from current accounts, and the Access to Banking Services Bill is designed to make provisions about access, especially in rural areas, and for community banking hubs. The right technology is essential in helping banks meet and exceed these requirements.”