Fintech founder says cash will continue to fade in relevance.
Today marks the 50th anniversary of the unveiling of the world’s first ATM at a Barclays branch in Enfield, London. The Bank of England’s chief cashier, Victoria Cleland, has marked the occasion by saying that cash remains a part of the Bank’s plans for the future.
While acknowledging a decline in cash transactions, Cleland also pointed out that 94 per cent of UK adults still use cash machines.
Meanwhile, Ricky Knox (pictured), founder and CEO of the digital-only challenger Tandem, believes that cash is on the way out. Knox says that the UK has witnessed a major shift in the way that people manage their money since the arrival of the country’s first cash machine. He argues that the cash machine made it easier for customers to access and manage their money, and that while technology has changed since 1967, the demand for easier methods of money management remains.
“The feedback from our Co-Founders is that they want to move banking from the branch to the palm of their hand, and with the proportion of payments made in cash falling around 20 per cent since 2005, we at Tandem definitely see the trend of app based banking accelerating, particularly with the introduction of open banking legislation next year,” he said.
Tandem is a digital banking challenger which exists as a kind of wrapper on top of a user’s existing bank accounts. Within its arsenal are many of the usual fintech tricks, such as spending analytics and automated savings plans.
But the app-based banking phenomenon is certainly building up steam. The major players (Monzo, Tandem, Revolut and so on) have acquired millions of users between them, and are proving particularly popular with younger people.
Although these firms allow their users to withdraw cash from ATMs, on balance they promote a cashless society – through such features as instant payment notifications, the ability to hold multiple currencies on one card, and so on.
Barclays marked today’s anniversary by colouring the modern-day Enfield cash machine gold. Could this prove a harbinger of a more ornamental future for the ATM?