Spain bank branches closure triggers Spaniards cash access - 1.3 million Spaniards do not have access to cash due to the closure of branches according to the Bank of Spain.
Although nowadays it is possible to pay with the mobile phone or through applications, there are still many who prefer to carry loose money in the wallet. Especially, those who live in territories where card payment is not so widespread.
Therefore, the Banco de España has warned that it is essential to ensure that citizens who want this means of payment have access to it.
Above all, because 1.3 million Spaniards-3% of the population - do not have access to cash due to the closure of branches. This is clear from the report Cash infrastructure and vulnerability in cash access in Spain that has made public on Wednesday the entity chaired by Pablo Hernández de Cos.
It concludes that, although "vulnerability in traditional access to cash in Spain is relatively low in much of the territory", alternative solutions must be found to guarantee access to the entire population. And one of the proposals made by the Banco de España is to use post offices as a complement to branches.
Spain bank branches closure triggers Spaniards cash access
If all the establishments of the state company responsible for providing the postal service in Spain were to issue money in effect, 99% of citizens would have access to it within a radius of 5 kilometers. In fact, two weeks ago this company signed an alliance with Banco Santander to guarantee the financial inclusion of the inhabitants of rural areas.
In countries such as Ireland, the United Kingdom or Australia, the use of post offices for these operations “is widespread in rural areas”, notes the document. However, in Spain "it is still unusual"”
Another of the alternatives proposed by the Banco de España is the withdrawal of money in a commercial establishment, which is known as cash-in-shop. This option would serve as a complement, but cannot be considered a substitute because it cannot guarantee the possibility of cash.
Spain bank branches closure triggers Spaniards cash access
Since 2008, the number of bank offices has fallen to 50%, while the presence of ATMs has decreased by 20%, according to the Directorate General of Cash and Branches. In addition, this reduction has occurred unevenly among provinces, resulting in an asymmetric effect.
At the end of 2020, the number of bank branches and ATMs in Spain was 22,299 and 49,481, respectively, representing 1.5 cash access points per 1,000 inhabitants of the Spanish territory.
But most of the independent ATMs are concentrated in urban centers, especially on the Mediterranean slope, in the south and in the peninsular center, while they are not frequent in rural areas.
Spain bank branches closure triggers Spaniards cash access
Only 1% of the 6,000 ATMs of these operators are installed in municipalities of less than 10,000 inhabitants, highlights the report.
Castilla y León is the community with the most difficulties, since the coverage of bank offices and ATMs has traditionally been lower. Specifically, Zamora and Ávila are the provinces with the lowest population ratios that have a branch or ATM within a radius of five kilometers.
In 2008, more than 70 per cent of municipalities in the region did not have an office, affecting 13 per cent of the population. And the problem will be, according to the Banco de España, that the disappearance of these points to withdraw cash continues.
The report also gives an example to Cáceres, where it is the case that a single access point serves seven municipalities. "If it disappears it would have a relevant effect," warns the document.