A banking kiosk for a new era of banking

The other day, I spotted a rare creature in the wild – a new £50 note.

Despite the overall downward trend, a lot of cash is still being withdrawn and used in circulation

I was standing at a bar, and the person next to me, who I knew, was trying to pay for a drink with this elusive and not-oft-seen denomination.

There was a bit of toing and froing between said individual and the bar staff. Eventually, they said that the bar was card only. The person turned to me and said, “That’s strange. They accepted cash earlier on in the evening.” And as they didn’t have a card or phone, I ended up paying for the round…

We discussed what had occurred and concluded that the bar had a policy of not accepting £50 notes. We speculated that this might be due to the potential for fraud due to the attraction of counterfeiting larger denominations. We also chatted about perceptions of the origins of large denominations and the stigma attached to them – in essence, people being paid for services in cash to avoid tax. As I say, it is perception and not reality.

This interaction reminded me that although I may live in a cashless world, many people rely on physical money and are increasingly penalised and treated with suspicion for doing so.

So what are the facts?

Link, the ATM network, has just published an update to its Access to Cash Review, which it first undertook five years ago. They interviewed over 2,000 people. Key highlights include:

• Nearly half the UK population believes the country is moving towards a cashless society.
• This belief persists despite significant changes in cash usage and concerns about a cashless society.
• The number of people who do not carry cash has tripled since 2019.
• Cash usage for everyday purchases has significantly declined.
• Most people carry £10 to £20 as a backup in case they cannot pay by card.
• Despite changes, 71% of people still rely on cash and have used it in the past two weeks.
• Daily cash withdrawals from ATMs are £209 million, down 33% from 2019.
• 48% of people find the idea of a cashless society problematic, slightly up from 2019.
• Conversely, 39% do not find it problematic, an increase of 6% from 2019.

Despite the overall downward trend in cash usage, a lot of cash is still being withdrawn and used in circulation.

Many banks have been closing branches, especially in rural areas, reducing access to essential cash services for small businesses. SMEB, a company identifying this issue, aims to fill this gap by providing banking and cash management solutions tailored to small businesses.

According to Andrew Martin, SMEB’s CEO, the concept for its new fintech solution emerged during the Covid-19 pandemic, recognising significant shifts in cash usage and banking needs.

The primary product is a self-service banking kiosk, or “cube”, positioned in secure, high-footfall locations like shopping centres and community markets. These kiosks provide private areas for cash transactions, ensuring security and privacy for users. The kiosks allow SMEs to deposit cash with instant credit, with plans to upgrade the offering “to provide free access to cash and then banking services so the cube becomes a financial focal point for the community”, the company writes on its website.

SMEB is also an authorised payment institution, a principal member of Visa and Mastercard, and connected to open banking and ClearBank for comprehensive banking services, offering a suite of services through a “super-app” designed to streamline various financial tasks, including banking, lending, insurance, and advisory services. It focuses on brick-and-mortar businesses such as butchers, bakers, restaurants, and hairdressers, which are traditionally cash-heavy.

Deployment plans include installing 250 terminals by the end of the year, with a target of over 2,000 devices in three years. Partnerships with national retailers could potentially facilitate this.

Security is a primary focus, given the nature of cash transactions. The kiosks are installed in secure locations with existing CCTV coverage and designed for privacy. SMEB performs rigorous know your customer (KYC) and anti-money laundering (AML) checks to manage risk, setting credit limits based on a business’s financial history and turnover.

SMEB’s goal is to provide a comprehensive financial solution that goes beyond traditional banking. Integrating various services into a single platform aims to save SMEs time and effort in managing their finances. The company also envisions expanding the product to consumers, fostering a local micro-payments ecosystem and recycling cash within communities.

At the start of my career, I looked after a few kiosks that Yellow Pages had scattered around Southeast England. They offered access to Yellow Pages information through an interactive interface. After that experience, if you had told me that banking kiosks would be a new banking innovation 30 years in the future, I would have raised an eyebrow.

However, this is an excellent example of the changing face of banking and banking channels, giving rise to innovations using old-school technology and linking it with a new app-based approach to solve a real-world need.

About the author

Dave Wallace is a user experience and marketing professional who has spent the last 30 years helping financial services companies design, launch and evolve digital customer experiences.

He is a passionate customer advocate and champion and a successful entrepreneur. 

Follow him on X at @davejvwallace and connect with him on LinkedIn.