Competition proposes cash withdrawal in stores to make up for the lack of ATMs in rural areas

In this study, the CNMC analyzes the impact of public and private initiatives on competition. The objective of the study is to eradicate the financial exclusion suffered by people with fewer digital skills, who are often found in rural areas.

The CNMC, at the request of the Ombudsman, requested to identify formulas to guarantee the competence of citizens in environments in which the presence of banking entities. Since 2008, 30% of ATMs have disappeared in Spaindue to the closure of bank offices and the digitalization of the sector. In this way, the most affected citizens are those of the rural areas and older peoplewho lack digital skills to carry out their banking operations on the internet.

In order to tackle these problems, private actions have been launched such as the “Strategic Protocol to reinforce the social and sustainable commitment of banks”, signed by banking employers, and public measures, through hiring files, aid or benefits offered by companies such as Correos.

Some of the CNMC’s recommendations, regarding private initiatives, are to develop a specific regulation of the services of cashback and cash-in-shopin order to implement them as alternative systems to ATMs. He cashback allows the customer to buy in a store, and when paying with their card, request payment for the product and an additional amount. In this way, you will receive said amount in cash. As for the cash-in-shopthe purchase of a product is not necessary. The business would then operate as an ATM.

In turn, the CNMC intends to implement financial trainingin order to inform citizens about the use, functionality, limits and risks of the two services explained above.

In the case of public initiatives, the CNMC requires verifying that there is a need that the operators present on the market are incapable to satisfy. For this reason, they consider that it is necessary to legally classify certain basic financial services as services of general interest. Likewise, they urge administrations to assess alternative solutions for current problems, such as the use of “ofibuses”, that is, mobile banking offices.

Continuing with the recommendations that emerge from the study, the CNMC recommends that public organizations resort to the competitive competition for hiring whenever necessary. With regard to Correos, it insists on the open nature of the services that banks can offer, as well as aiming to promote Vulnerable groups learn about Correos services to operate in banking.