Ensuring Access to Traditional Offline Banking Services: The Importance of Physical Banking in a Digital World

2023-09-13 17:15:42

The universal banking service would involve providing a minimum of “analogue” banking services (provision of a payment card, ability to carry out some operations and cash withdrawals as well as the creation of direct debits) and the provision of physical account statements at a reasonable price.

One of the objectives of the text is to anchor in law and expand the -non-binding- Charter concluded in 2021 between the federal government and the banking sector with a view to allowing customers who do not carry out their transactions online to continue to have access to these traditional offline operations, without the costs exploding for them.

“The ECB welcomes the objectives of the proposed law to ensure physical access to basic non-digital banking and financial services, and in particular those aimed at ensuring sufficient and effective access to cash across the country. Sufficient and effective access to cash is necessary to preserve the effectiveness of their legal tender. If citizens do not have easy access to cash, they will not be able to use it as a means of payment,” the ECB underlines in its opinion.

The health crisis has favored the growth of electronic payments which have now become very widespread. The European Central Bank, however, insists on the importance of preserving cash payments and cites several advantages: control of consumer spending, immediate settlement of debts and protection of privacy.

“Cash payments facilitate the inclusion of the entire population in the economy by allowing citizens to settle a wide range of payment transactions in this way, which guarantees freedom of choice of payment method for all citizens. In addition, cash is a well-established means of payment that allows immediate settlement of debts and direct control of the payer’s expenses. It is currently the only means of payment allowing citizens to settle a transaction in central bank currency which is, moreover, settled immediately and which, above all, guarantees the protection of privacy,” she stressed. .

“Every customer should be able to access their money when they want and should be able to choose how they pay. With the opinion of the ECB, we will be able to move forward on our bill in the House. This would be an important step forward for consumer protection,” underlined MP Christophe Lacroix (PS), co-author of the proposal.

In March, the government, the banking sector and the Batopin network reached an agreement on the installation of more than 200 new ATMs by 2025. This was, however, deemed insufficient by several organizations. The House Economy Committee had organized hearings on this issue.

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