NoteMachine is concerned about recent moves by businesses to only accept card payments as it will severely impact those most vulnerable. Many of these people are currently self-isolating and rely on neighbours, friends and families to do their food shopping for them which needs to be done with cash.
Removing this payment method at such a critical time would be a devastating blow to many people. It is essential that supermarkets, pharmacies, convenience stores, take-aways and all other businesses continue to accept both cash and card payments as another vital way we can work together to support the most vulnerable in our communities.
Find out moreKeeping our ATM sites running is paramount to the country and we have CIT operatives filling the ATMs, engineers servicing them, our helpdesk managing calls from the public as well as all the other departments that support them and the business.
Now at a time when bank branches have shut, people are relying on cash to budget and others are helping the most vulnerable to ensure they have food and groceries; NoteMachine staff continue to keep the ATM network available to all.
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However due to these restrictions, some businesses are being forced to close and this may disrupt the availability of some of our Cash Machines at these locations.
We apologise for any inconvenience this may cause. Should you experience any problems please contact our customer service centre on 0800 068 9368.
With an unrivaled selection of end-to-end services, from shop fitting and security to ATM installation and management, we utilize the established services of the NM Money Group to deliver efficiency and drive down costs. The NM1 Branch in a Box is an all-in-one banking solution for retailers that delivers.
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A NoteMachine ATM gives your customers a reason to keep coming back to your business and spending more.
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We work with many high street banks and building societies, offering all-in-one management solutions for their ATM networks, whether remote or in-branch. We’re proud of the reputation we’ve built for integrity and exceptional service.
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21,000,000,000
Transactions in the last 12 months
11,000
Cash machines and growing
27,000,000
People using our ATMs every month
A brand new offering from the from the NM Money Group, NM Vault is a new secure cash deposit service. Simply deposit your cash by 4pm and it's in your bank the next working day.
Find out moreNoteMachine has been successful in acquiring non-branch ATM networks from a number of high street banks and building societies. We would welcome the opportunity to acquire further ATM estates.
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Yesterday we saw an 11% rise in cash withdrawals against last Monday, mostly driven by a failure of card payment systems failing for a number of retailers. For those food retailers whom were impacted saw a 35% increase in ATM withdrawals on their estate . This is a clear indication of the need to have cash systems to resilience and food supplies.
Find out moreSince the COVID-19 pandemic changed the world’s behaviour, ATM usage has seen a rapid decline in most geographies. This has been powered by a combination of lack of movement and economic activity (due to enforced lockdowns); an increased use of alternate channels including mobile or, even encouraged by retailers, a possibly irrational fear of the risks of handling cash, although that theory is pretty much debunked now. In 2021, the world hopes to see a gradual return to a “new normal” and as this occurs, the ATM will be a lifeline to demographics who are not comfortable with digital banking, or who are reliant on cash – writes Mark Aldred.ATMs, far from simply serving utilitarian, transactional purposes can, in fact, become relationship-building tools for banks that opt to add capabilities such as two-way video, account opening, instant card issuing, check book printing and other multifunction technologies.In the future, the potential exists for the ATM to be a Teller Machine. Rather than simply a source of cash, self-service technology can be at the heart of the redefinition of the retail banking experience provided 24-hours per day wherever there is demand.Around the world of course ATMs and devices based on the same hardware and software technologies will be deployed in volumes determined by local demand, and we will see a replacement program with a generation of cash-and-dash machines being replaced with recycling and deposit devices as well as “assisted service devices” to meet consumer demand cost effectively.Tearing out and tearing down is not the answerLegacy Banks are suffering a perfect storm; massive reductions in customers’ utilizing traditional banking channels and new entrants seizing market share with innovative digital only solutions.Tearing down branches and tearing out ATMs often from communities that aren’t ready to see them go has been the blunt instrument employed to reduce costs and increase efficiencies. But there’s a risk in terms of lost customer loyalty and reputational damage. Self-service can be at the heart of mitigating this.Globally self-service will be complemented by assisted service and remote service to offer an alternative to digital-only banking. It will be the differentiator for legacy banks and their vehicle to defend them from neobanks and fintechs trying to disrupt the market on the cheap.There is a need for greater imagination from some parts of the industry to use advances in self-service banking technology that can give a community a bank branch in a box or rejuvenate their bank branch as a focal point for financial services. The ability to customize modern ATMs to offer additional services from paying a bill to doing a live video call with a financial product specialist also allows cash access to be subsidized through generating extra revenues.The benefits of self-serviceEvery consumer has personal needs and enjoy particular benefits from their choice of channel when engaging with their bank. It could be personalized customer journeys, informative and promotional messages or contextual marketing messagesBut for those dependent on cash, self-service will be their lifeline. For communities who might otherwise lose all access to banking, self-service ATMs will prevent their rapid decline and keep their retail centers relevant. In branch, it can be a contact-free way to access all banking services, around the clock securely.Banks have for many years relied on technology to reduce their costs and increase efficiencies so that they can distribute their products and services to their customers using the most appropriate, cost effective channels. Customer-centric technologies have provided the data and tools to manage relationships in the most profitable way.However, every generation of innovation in retail banking delivery, every new technology has created physical distance between the bank and its customers. That means banks are more vulnerable than ever to competition in a world of near limitless choice.Technology, for the first time, is constraining banks. Their self-service infrastructure is typically reliant on technologies which are decades old, expensive to maintain and frustrating when it comes to innovation. That needs to be modernized so that banks can start to realize the potential of these technologies.Branch operations need to be automated using hardware and software to deliver a comprehensive banking experience around the clock and anywhere there is demand.When we speak of technology, it is easy to think about AI. That can also empower banks in delivering personalized customer experience (omnichannel marketing) and manage banking assets and cash more effectively (let’s think to predictive maintenance).Moving forward, banks will need to accommodate all of their clients’ preferences. Allowing choice to customers so that they can navigate the bank’s services their way will only be a starting point. Customer-centric does not mean forcing everyone to a mobile-only experience which may not even prove reliable, and is unlikely to differentiate a bank in a world full of choice.Behind everything they do, banks will also need to guarantee security. A topic which is so important and so public is also one that is too often treated as a side issue.Using tools which are specifically designed to provide comprehensive security and control should be a minimum requirement for banks. Recycling practices which work in a desktop environment is not good enough for banking channels; special focus must be brought to bear.Those who stick with a legacy infrastructure will find change too expensive, too high risk and too complex. They will not be able to adapt and innovate at pace and will be at risk of losing customers and business.Closing branches and not using emerging technologies to offer an alternative will disenfranchise sections of their customer base and alienate othersNot keeping up to date will lead to a race to the bottom where our financial services will be provided by a barely differentiated range of app-based entities to whom customers feel no loyalty.Why banks should consider #NextGenBranchWhat is #Nextgenbranch? It’s a full service 24-hour branch that can be anywhere. It is fully automated, yet provides a safe space for interactions both digital and personal with a bank.It can be shared and be utilized for a vast range of purposes, customized for the community it serves. Because of this, the business case will be very different from that of a legacy branch and so will its footprint.It will provide lower costs and increased revenues as well as a platform for promotion of complementary third-party products and service. It will send a message to communities and to individual customers that they are valued.The real future of the ATMWe may need to find a new name for the ATM as there seems to be so much reluctance to see it as anything other than a cash machine.Whatever we call it, self-and assisted-service technology, delivered securely and to recognized industry standards, it will complement web, mobile, telephone and other banking channels and redefine the spaces we use to engage with our banks and the hours that they are open for business.A fully automated branch, where bank staff are there to provide high value services will be built on the same technology that drives our ATMs today, but with a modernized infrastructure so as to free up its full potential. Article from: https://www.paymentscardsandmobile.com/2021-is-change-is-on-the-horizon-the-future-of-the-atm/
Find out moreSummary 1. NoteMachine welcomes the opportunity to submit written evidence to this call for evidence as it has been campaigning for several years to protect access to cash, particularly free access, in the UK. NoteMachine is fully engaged with officials, regulators, industry and consumer groups on this issue. 2. There is a mass market for cash in the UK in that it is important for everyone, not just the elderly and vulnerable. Pre-Covid-19, around 43 million distinct cards withdrew money from ATMs across the UK every month, assuming a card per person, which means approximately two-thirds of the adult population still regularly used cash. At the height of the first wave, around 20 million cards were still being used to withdraw cash despite the national lockdown and footfall being down by more than 80%. 3. Now more than ever, cash is a lifeline for the vulnerable and those most impacted by the pandemic. Cash is essential for those needing others to shop on their behalf, whether elderly, vulnerable or self-isolating. Cash, and particularly ATMs, are also vital in rural areas which have an older population and where alternative facilities may be inaccessible. Finally, careful budgeting, which is easiest with cash, is critical for employees, the self-employed and sole traders. This becomes more important in the context of significant financial uncertainty. 4. Cash is also a vital driver for local economies and, as such, should be considered a key part of the economic recovery. Local economies will not recover without cash. Cash provides local liquidity, and with footfall currently restricted in large towns and cities few things are so important. Similarly, local retailers need cash to reduce other costs in their business, such as card processing fees. 5. NoteMachine fully supports the government’s commitment to legislate to protect access to cash but urges it to act immediately or else risk the UK’s cash infrastructure collapsing altogether, which would be irreplaceable once gone. As part of this, it is essential government and / or regulatory action considers protecting and maintaining the UK’s free to use (FTU) ATM network which dispenses circa 90% of UK consumer cash. 6. NoteMachine and other Independent ATM deployers (IADs) are keen that government and regulators recognise the crucial role that IADs play in easily providing widespread access to cash and the additional services they can provide for consumers e.g. deposit taking machines allow for small businesses to deposit cash locally (and more easily), keeping cash circulating within the local economy. 7. Prior to Covid-19 and its restrictions, changes to the way ATMs were funded had put the cash infrastructure in a precarious position, forcing IADs to convert machines from free to pay to use (PTU) and withdrawing machines completely in many cases. This was caused by LINK’s decision to cut the interchange fee (fees paid by banks to IADs every cash withdrawal) and move away from the independent cost study that set this fee and, crucially, accounted for trends in transaction volumes. Covid-19 and the declines and rises in cash withdrawals from implementing restrictions and then easing them, respectively, has brought the need for a volume adjustment mechanism into sharp focus when determining the interchange fee going forwards. 8. There is a simple solution to protecting (free) access to cash which does not require legislation. By funding the ATM infrastructure fairly and sustainably through changes to the way the interchange fee is set would ensure greater access to cash and a healthy and competitive marketplace within which to operate. 9. The interchange fee should be set by an independent cost assessment, thereby reflecting the costs of transactions fairly. A tiered or zonal interchange fee should also be introduced so ATM infrastructure funding is distributed fairly throughout the UK and will protect ATMs throughout all communities, despite their population and withdrawal volume levels. This would mean city centre ATMs receive a lower interchange fee, reducing risk of oversupply and encouraging deployment and / or redistribution into tertiary and rural areas.Question 1: How can the government ensure the UK maintains an appropriate network of cash withdrawal facilities over time through legislation?10. The government must ensure there is a sustainable economic and regulatory environment in which all market players can operate, including independent ATM deployers such as NoteMachine which play a key role in providing access to cash. 11. ATMs are an essential utility providing critical infrastructure for the UK economy. To remain free to use, this infrastructure requires a stable level of funding to ensure the utility’s costs are sustainable for a fixed period. This could be provided via an interchange fee, or similar mechanism, funded by banks to ensure their customers can access their cash. This would not require government legislation, but government could use legislation to ensure this structure is put in place, if deemed necessary. 12. With around 75% of ATM infrastructure costs being fixed, ATMs must be funded sufficiently to remain viable. However, in 2018, LINK announced a series of cuts to the interchange fee – the fee paid by banks to IADs for every cash withdrawal. Two of these cuts have taken place and a further cut was scheduled for January 2021. NoteMachine welcomes the cancellation of the planned final cut, but this is not sufficient to protect the network. 13. The original mechanism that set the interchange fee was considered fair and considered cash usage trends as part of its built in ‘volume adjustment mechanism.’ It would have protected the cash infrastructure as demand changed in the UK. The cost of enabling free access must reflect the volume of transactions as well as the largely fixed cost of the ATM infrastructure itself. 14. A new infrastructure funding model should be put in place which provides the level of funding required to recover fixed costs and provide sufficient return for those providing the ATM network. The cost should be agreed based on overall industry costs and a funding model to cover this should be locked in for a minimum of five years to provide stability and protect against volatility in transaction volumes.15. The agreed level of funding to support the free access to cash network would then be translated into an interchange fee to distribute a level of locked-in infrastructure funding. A fixed element of the mechanism would recognise the cost of providing the scheme, thereby protecting the infrastructure whilst a variable element would recognise costs associated with volume. 16. Such a scheme should apply to all card schemes, not just LINK acquired transactions, to further protect the scheme from issuers ‘free riding’ but using alternative card schemes. 17. NoteMachine accepts there were some risks emerging around oversupply – particularly in city centres. To address this, a tiered or zonal interchange fee should be introduced so ATM infrastructure funding is distributed fairly throughout the UK and will protect ATMs throughout all communities, despite their population and withdrawal volume levels. This would mean city centre ATMs receive a lower interchange fee, reducing risk of oversupply and encouraging deployment and / or redistribution into tertiary and rural areas. 18. Under such a funding structure: • NoteMachine commits to reverting over 2,500 machines back to free. If the rest of the market were to follow this would mean a total of 5-6,000 machines turning back to free.• NoteMachine also commits to installing free to use ATMs to maintain the overall spread of these ATMs throughout the UK. This would be at no additional cost to the LINK scheme, other than changes to the interchange cost pricing mechanism outlined in this submission.• NoteMachine will also put in place inbound cash deposit solutions where bank branches have closed or are inaccessible to smaller businesses. This will help to ensure a healthy circulation of cash in local economies, which are reeling from the social and economic impacts of Covid19.Question 2: What is the potential for cashback to play a greater role in the provision of cash withdrawal facilities, and how can legislation facilitate further adoption of cashback? 19. Cashback, or cashback without a purchase specifically, is not a viable replacement for a properly funded ATM network which provides free access to cash. Whilst retailers may wish to provide this service, it should not be mandated via legislation or any other means. 20. Increasing the role of cashback in the provision of cash withdrawal facilities would pose significant problems for small retailers, including security concerns around keeping cash on site. ATM crime cost £6.5m in 2019 and £2.5m in 2020 to date. Small businesses exist to sell products rather than dispense cash. The latter exposes the business and its employees to personal injury as well as financial losses. 21. Cashback also poses significant logistical issues for retailers who have insufficient cash liquidity to provide this service without a significant cost burden. On the other hand, ATMs are relatively lowcost and are stocked via a streamlined process.Question 3: How can the government ensure the UK maintains an appropriate network of cash deposit-taking facilities over time through legislation?22. As banks withdraw services via branch closures, there is a need for new, innovative deposit-taking inbound cash solutions which fill this gap for individual consumers and SMEs and help to keep cash local, spent in the surrounding economy and therefore helping towards economic recovery.23. Many banks operate the LIS5 intelligent deposit solution for their ATMs. NoteMachine’s intelligent deposit solution uses the VocaLink switch to process the deposit transactions using LIS5 messaging standard. The LIS5 messaging standard is already used by most financial institutions to accept / decline cash withdrawals and to accept / decline cash deposits via the Post Office. Therefore, connectivity development work for FI’s would be minimal. NoteMachine believes that all banks should be required to operate LIS5 to allow for cash deposits and enable inbound cash solutions from other providers.24. A utility price – like the interchange fee – should also be established to fund this, so operators like NoteMachine can provide consumers and businesses with this service. A fee structure set at around 60% of bank paying in costs would allow NoteMachine to operate such a scheme throughout the UK at every location which is distant from a viable alternative. This will mostly be a service for SMEs and will be key to local economies, ensuring a smooth circulation of cash.Question 4: What are the key factors and considerations for maintaining cash acceptance in the UK?25. There is a growing trend, accelerated by the Covid-19 pandemic, towards retailers either not accepting cash or encouraging non-cash payments. This is despite a lack of evidence that cash is transmits the Covid-19 virus. 26. The Bank of England has said that “the risk posed by handling a banknote is no greater than touching any other common surface, such as handrails, doorknobs or credit cards” while the World Health Organisation has denied that cash, and specifically banknotes, transmit Covid-19.27. The low cost of handling cash has been identified as a key driver for cash acceptance. However, the cost of handling card transactions is much higher, typically 30-50 pence per transaction for a retailer. As such, cash must remain a viable method for businesses. 28. Cash acceptance must remain for those that rely on cash for budgeting or other reasons, such as a lack of digital skills or access to card payments and banking. Crucial to this is also maintaining free access to cash so certain groups are not disadvantaged compared to those with alternatives to paying with cash.29. With the above in mind, government should legislate to ensure that all retailers accept cash in order to prevent a damaging decline in cash acceptance.
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We’re always on the lookout for enthusiastic people to be part of our growing, successful business.
Don’t worry about previous experience, most important is an understanding of what makes great service, and a passion to work as part of a customer-focused team. Sound like you?
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