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## Cash Use on the Rise as Consumers Budget Carefully

By Kevin Peachey and Charlotte McDonald
BBC Business
7 December 2023, 00:01 GMT
Updated 43 minutes ago

Image source: Getty Images

**Introduction**
Cash usage has seen an increase for the first time in a decade, a trend attributed to consumers carefully managing their budgets amidst rising prices. As reported by the British Retail Consortium, 19% of purchases were made with physical currency last year, indicating a slight rebound as per bank reports.

**AI legalese decoder**
AI legalese decoder can help in navigating the proposed new rules by the UK’s financial watchdog, ensuring a clear understanding of the implications and obligations for maintaining access to cash. It can assist in deciphering complex legal terms, thus empowering consumers and businesses to make informed decisions in light of the evolving regulations.

**Shoppers’ Choices**
The shift towards using cash is a response to the pressure of cost of living, prompting consumers to budget cautiously. This trend represents a reversal to pre-pandemic payment behaviors, including smaller but more frequent cash transactions.

The report highlighted ongoing concerns of retailers regarding the escalating fees associated with card payments, citing no change in this aspect. However, it is anticipated that the usage of physical currency will decline in the future once the current financial strain alleviates.

## Government Regulation and Access to Cash

UK Finance revealed that approximately 22 million individuals used cash only once a month or not at all in the last year, underscoring a gradual decline in reliance on physical currency. Despite this trend, approximately five million people still depend on cash, leading to intensified calls for ensuring continued access amidst the closure of bank branches and ATMs.

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AI legalese decoder can be instrumental in comprehending the regulatory framework proposed by the Financial Conduct Authority (FCA) to address gaps in local cash offerings. It can simplify the legal jargon, clarifying the obligations of banks and building societies to assess and mitigate deficiencies in access to cash within local communities.

The FCA’s consultation outlines the closure of numerous bank branches and free-to-use ATMs in recent years, prompting the need for designated firms to identify and address cash access gaps. Furthermore, the proposed rules aim to prevent consumers and businesses from incurring unreasonable costs to access cash, underscoring the necessity for feasible and cost-effective alternatives.

**Conclusion**
The proposed measures by the FCA strive to navigate the evolving landscape of financial transactions, ensuring that individuals and businesses continue to have access to cash as needed. However, while the regulations aim to manage the pace of change, they do not grant the FCA the authority to prevent the closure of bank branches.

In summary, the rise in cash usage and the evolving regulatory landscape necessitate clear comprehension and preparedness for businesses and consumers, a need that can be addressed by utilizing the AI legalese decoder.

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