20 October 2016
Visit dh.com

RBS and Lloyds perform U-turn on ATM access restrictions

13 June 2014  |  5494 views  |  1 ATM

Royal Bank of Scotland and Lloyds Banking Group are ditching their restrictions on customers with basic accounts using rivals' cash machines.

In 2011 RBS revealed that it had followed Lloyds' lead and was preventing around one million basic account holders from using cash machines belonging to other banks.

The part state-owned institutions argued that letting these customers use rival ATMs was unsustainable because they could not recover the costs incurred each time a transaction took place.

The move attracted criticism, prompting a report from Treasury Select Committee, which bemoaned the negative effect on financial inclusion and concluded that it saved the banks a relatively small £10 to £12 per account.

RBS has now performed a U-turn with CEO Ross McEwan, saying: "We looked at this and decided it just wasn't right. You don't make life harder for those who need your help most. We need to rebuild trust with our customers."

Lloyds is also changing its position, writing to basic account holders to let them know that they will soon have access to other banks' ATMs.

Comments: (1)

A Finextra member
A Finextra member | 16 June, 2014, 09:03

Inclusiveness should surely be part of a bank's mandatory obligations. It was a good decision to reverse the stance on this. Needless to say, the Treasury Select Committee and the wheels and cogs of the FCA would have otherwise turned regulate against such a policy. 

Point of sale and merchant acquiring are tremendously lucrative and surely net off the costs of serving retail accounts. Banks need to think holistically about the services they provide and consider worth in terms other than pure profitability.  

£12 per account is nothing compared the cost of sponsorship deals such as football, racing etc. Be known for your service quality, not who you sponsor.

1 thumb up! 1 thumb up! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

MPs call on Lloyds and RBS to scrap ATM access limits

MPs call on Lloyds and RBS to scrap ATM access limits

31 August 2012  |  5106 views  |  0 comments
MPs take RBS and Lloyds to task over ATM access

MPs take RBS and Lloyds to task over ATM access

10 October 2011  |  5848 views  |  0 comments
RBS cuts access to rival ATMs

RBS cuts access to rival ATMs

18 August 2011  |  11122 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
Find out more Visit www.abe-eba.eu

Top topics

Most viewed Most shared
The bank of the future will be invisible - KPMGThe bank of the future will be invisible -...
27988 views comments | 102 tweets | 200 linkedin
hands typing furiouslyBlockchain, near real-time projects and co...
12223 views 0 | 34 tweets | 20 linkedin
New EU rules could cost UK firms £122bn in cybersecurity fines - PCI SSCNew EU rules could cost UK firms £122...
10318 views comments | 31 tweets | 35 linkedin
Hackers hit 6000 web stores to steal card dataHackers hit 6000 web stores to steal card...
8309 views 10 comments | 11 tweets | 20 linkedin
Barclays and Citi test blockchain tech for equity swaps processingBarclays and Citi test blockchain tech for...
7949 views comments | 24 tweets | 16 linkedin

Featured job

Find your next job