Finding a cashpoint is becoming an increasingly difficult challenge in towns and cities across Flanders, but also in rural areas. For years now Belgian banks have been reducing the number of “holes in the wall” where you can withdraw cash. Government and banks have now struck a deal that should facilitate the quest for some.
More and more payments are being made by card or by online transfer. Cash isn’t in the great demand it used to be. Since the shot in the arm the pandemic gave electronic payments, consumers are not embarrassed to flash their bank card even for the smallest of payments. Banks too have cottoned onto this evolution and are cutting back on automatic telling machines, ATMs, which are expensive to operate across the country.
Many rural municipalities find themselves without a single cashpoint and it’s particularly the most vulnerable in society that are affected: the elderly who are still often eager to use cash or people with limited mobility. Truth be told everybody likes some readies from time to time.
The federal government has now struck a deal with the banking sector that should see an improvement. Under the deal, by 2027, Belgium will boast 4,000 ATMs. The ATMs will also be spread more evenly across the country. ATMs are being installed at 287 new locations.
In practise this will mean at least one ATM per Belgian municipality and that banks won’t be able to remove cashpoints if this reduces cashpoint coverage in a particular area.
But it’s not only in rural areas that people face a challenge. The reduction in the number of cashpoints in towns and cities often means people have to waste time hunting around for an ATM and when they find one there is often a big queue. The sector has now given a commitment to keep or instal cashpoints at what are being called 80 “strategic locations”.
Under the deal, in urban areas you should be able to find a cashpoint within a range of 2km. In less built-up areas the range is 3km, while in rural areas, where population density falls to below 300 inhabitants per square kilometre, an ATM should be available within a range of 5km.
In addition, under the agreement, bank customers will be able to make 24 free withdrawals every year. The withdrawals don’t have to be made at your own bank but can also happen at cashpoints operated by other banks.
The deal also stipulates that half of all CASH points operated by Batopin, the ATM network not linked to one single bank, will also offer deposit facilities. In other words you will be able to deposit cash onto your account here.
Government ministers are upbeat about the deal. Work and economy minister Pierre-Yves Dermagne (Francophone socialist) says the sector will now assume the social responsibilities that it had seemed to have lost sight of, while finance minister Vincent Van Peteghem (Flemish Christian democrat) believes readily available cash machines are a basic right. Alexia Bertrand, the consumer affairs secretary, points to the importance of retailers and small businesses being able to deposit cash at an ATM in their neighbourhood.
Melissa Depraetere of the Flemish socialists speaks of a sea-change in the attitude of banks that need to make providing a basic service a priority and offer everybody access to an ATM in their neighbourhood.
But consumers’ organisation Test Aankoop and seniors’ organisation OKRA are not impressed. “For over two years now we’ve been asking the government to legislate to guarantee access to cash. The agreement including the 287 extra ATMs doesn’t meet our demands” they say in a joint statement.
Researcher Anne Fily believes the situation will continue to deteriorate, while OKRA’s Delphine Schedin points to the non-binding character of the agreement. The organisations want to see the details of the accord including the exact location of ATMs to allow municipalities to examine their local situation.