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Leatherhead
Member since
2018
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Ron's blog archive

2018 (3)
Ron Delnevo

Ron Delnevo

Chairman at Cash & Card World
Message Message me Posts: 3 Comments: 4
Bio My focus:preserving choice in every aspect of life.Thought Leader & Keynote Speaker on importance of Cash within Payment Choice. Career History Leadership roles in a variety of organisations. Twenty years heavy involvement in Financial Services. Currently spearheading the work of the ATM Industry Association in Europe.

Blogs

Innovation in Financial Services

A Vision of a Smart Future for UK ATMs

18 Jun 2018

Which? has issued a report that claims the Big 5 Banks in the UK are closing their branches at the rate of 60 a month. If this is true, it will not be the run-rate of closures for long. Barclays,HSBC, Lloyds Banking Group, RBS Group and Santander have only around 5000 branches left between them. A 60 per month closure rate implies they will all be ...

Financial Services Regulation

LINK : can Nicky Morgan be a Genuine Consumer Champion?

06 Mar 2018

I was in Parliament the other week, in a Committee Room, listening to a lot of promises being made by the LINK ATM Network. The promises boil down to the claim by LINK that they will never let any town be without an ATM. Do you remember the “we won’t close the last bank branch in town” promise? It didn’t last - and nor will LINK’s. I have been in C...

1

Financial Inclusion

How Can We Avoid Missing LINK?

09 Feb 2018

The LINK UK ATM Network announced a few months ago that it planned to reduce ATM interchange by 20% over 4 years. This move stunned many observers because LINK interchange is calculated each year using a transparent cost-recovery formula, which was approved by UK Regulatory Authorities well over a decade ago. The essence of the argument put forward...

3

Ron is Commenting on

ATMs can become thing of past

  This blog, in focusing on the UK, makes assumptions that are incorrect. ATMs elsewhere on the planet ARE substitutes for bank branches. The fact that UK ATMs do NOT offer a variety of financial services transactions points to a lack of investment in community customer services, something considered unacceptable in many other countries. Even in the UK, it is wrong to suggest cash withdrawals are the only service on offer. Balance enquires and similar services account for more than 1/3rd of all ATM activity. The recent Access to Cash Report revealed 97% - YES, 97% - of UK adults continue to carry cash and nearly half of them - 25 million adults - would have their lives seriously disrupted if cash is not conveniently available. Cash is not a Minority Interest - the majority of people continue to choose to use cash and MUST be free to do so. They are entitled to have Payment Choice. As regards how this vital cash is supplied, ATMs are the ONLY channel that works for the vast majority of the public - which is why ATMs meet over 90% of the UK’s cash needs today. Cash from retailers tills - “cash back” - can augment cash from ATMs BUT never replace it. The figures are easy to understand. The average free-to-use UK ATM delivers £3 Million cash per annum; a local community shop, usually (from Association of Convenience Stores own figures) achieves total sales of less than £1 Million a year - and 25% or more of those sales are card-based. So, clearly, such a shop cannot possibly deliver £3 Million per year via “cash back”, to replace a lost ATM. What we - the UK Public -need is not misguided and unworkable schemes to replace ATMs. What we DO need is legal protections put in place to guarantee the future provision of Smart ATMs - allowing deposit, recycling and withdrawal of cash - in EVERY community, ATMs which CAN replace the dodo-emulating bank branches. Such legal protection will safeguard ACCESS to cash for individuals and businesses around the UK. We also need ACCEPTANCE of cash guaranteed by law, so that no business which accepts in-person payments is permitted to refuse cash for payment. Other markets have such laws. The UK must follow their lead, in the Public Interest. No further blogs required. The answers are provided in what I have just keyed.

ATMs can become thing of past

  This blog, in focusing on the UK, makes assumptions that are incorrect. ATMs elsewhere on the planet ARE substitutes for bank branches. The fact that UK ATMs do NOT offer a variety of financial services transactions points to a lack of investment in community customer services, something considered unacceptable in many other countries. Even in the UK, it is wrong to suggest cash withdrawals are the only service on offer. Balance enquires and similar services account for more than 1/3rd of all ATM activity. The recent Access to Cash Report revealed 97% that 97% of UK adults continue to carry cash and nearly half of them - 25 million adults - would have their lives seriously disrupted if cash is not conveniently available. Cash is not a Minority Interest - the majority of people continue to choose to use cash and MUST be free to do so. They are entitled to have Payment Choice. As regards how this vital cash is supplied ATMs are the ONLY channel that works for the vast majority of the public - which is why ATMs meet over 90% of the UK’s cash needs today. Cash from retailers tills - “cash back” - Can augment cash from ATMs BUT never replace it. The figures are easy to understand. The average free-to-use UK ATM delivers £3 Million cash per annum; a local community shop, usually (from Association of Convenience Store figures) achieving total sales of less than £1 Million a year - and 25% or more of those sales are card-based. So, clearly, such a shop cannot possibly deliver £3 Million per year via “cash back”. What we - the UK Public -need is not misguided and unworkable schemes to replace ATMs. What we DO need is legal protections put in place to guarantee the future provision of Smart ATMs - allowing deposit, recycling and withdrawal of cash - in EVERY community, ATMs which CAN replace the dodo-emulating bank branches. Such legal protection will safeguard ACCESS to cash for individuals and businesses around the UK. We also need ACCEPTANCE of cash guaranteed by law, so that no business which accepts in-person payments is permitted to refuse cash for payment. Other markets have success laws. The UK must follow their lead, in the Public Interest. No further blogs required. The answers are provided in what I have just keyed.

How Can We Avoid Missing LINK?

  You are concerned about an option being pushed? It remains an option, pushed or not. That is what I support, not the limiting of options that would brought about by bank branch, ATM and cash deserts. As regards the merits of a cashlesss society, Cash is the cheapest payment for retailers to manage ( the British Retail Consortium, which represents 80% of major retailers, produce figures showing this each year). So there would be no direct cost benefits from going cashless. As regards, tax evasion and other crimes, there are 5 Billion regular users of cash on the planet. All forms of crime that are sometimes associated with cash are tiny by comparison with the legal uses made by those 5 Billlion. The crimes of a few should not lead to the punishment of the many. Finally, you seem to advocate Independent ATM operators charging for cash withdrawals? You will be happy to learn then that there are 15,000 pay-to-use ATMs in the UK. That’s more than 20% of all ATMs in the country. However, only 2.5% of Cash Withdrawals are made at those ATMs. Unsurprisingly, the UK public prefer to get cash without a direct charge at 55,000 free-to-use ATMs. The real problem in the UK is that banks pretend that banking can be free, part of which entails providing free ATM transactions. Banks themselves could lead the way by making reasonable charges for all services, instead of cross-subsidising “free” banking for 80% of their customers by heavily charging the 20% who face high overdraft and credit card charges and penalties. I recommend the book “Naked Banking” for a full exposition of such matters.