Over the last few years, Post Office has become the place to go to for customers to withdraw and deposit cash.
Banking services are important to Postmasters’ businesses which is why we are continuing to focus on growing and developing the service we offer. As part of this, recently we’ve announced new partners and we are setting up a drop & go style service for business banking customers.
The role of cash has always been a widely discussed topic and ‘cash cycle’ will play a vital part in the UK’s economic recovery from Covid-19.
Today we have released our second Post Office Cash Tracker which shows the billions of pounds deposited and withdrawn each month across our network.
Use of everyday banking services at Post Office branches in August is traditionally less than any other month. However, high deposits by personal and business customers indicate continuing confidence and reliance on cash, as this year’s deposits are not far short of the amount deposited last August. This is reflected in a 3.1% increase in business deposits since July and a 16.3 per cent year on year increase for personal deposits in August.
Nick Read, Chief Executive, said: “Our data shows that businesses and customers continue to rely on their local Post Office as the destination where they can deposit their cash. Our network of branches in seaside towns, rural locations and close proximity to popular tourist sites has meant that independent businesses have had a convenient location to drop off their day’s takings.”
Further analysis on business banking and personal banking services is below.
Cash deposits specifically by business customers amounted to £831 million showing how much small businesses and independent retailers continue to rely on cash to operate. The figure for business cash deposits in August 2020 is a 3.1% increase from July as businesses continue to recover. When compared to the start of lockdown, Post Office data shows that in April, £313 million was deposited by business customers. This compared with over £1 billion in April 2019.
The value of cash deposits by personal customers remains high, and greatly exceeds pre-Covid-19 levels. In August, £945 million was deposited in cash at Post Office counters. Deposits are at higher levels than at the equivalent point in 2019 (a 16.3% increase) as individuals increasingly turn to their Post Office to deposit cash accumulated during the lockdown period. In terms of cash withdrawals by personal customers, £552 million was withdrawn over our counters, however withdrawals have yet to exceed the equivalent month the previous year.
Personal cash deposits
Personal cash withdrawals
Commenting on August’s data, Martin Kearsley, Director of Banking, said: “There are definitely encouraging signs of a return to the use and importance of cash following the significant lockdown dip. We are seeing a month on month growth in business cash deposits since the start of lockdown as people return to work and venture out to our shops, pubs and restaurants and leisure and tourism attractions. Our network of 11,500 Post Offices also makes it very convenient for our personal customers to deposit their cash too, whether they live in urban or rural locations, there is always a branch nearby and nearly all UK bank customers can access their accounts at Post Office.”
The Post Office Cash Tracker illustrates the continuing reliance that small businesses and individuals place on being able to quickly and securely deposit and withdraw cash. For further data and analysis, you can find the Post Office Cash Tracker here.