With the cost of living crisis taking full effect, reports from Nationwide reveal that cash withdrawals increased by 19% in 2022 as people attempted to better manage their personal finances.
In contrast, Government data suggests that ATM numbers have declined consistently year on year since 2015 meaning that this is an unsustainable approach to money management.
Expert in global pay solutions, CloudPay, warns that access to wages both instantly and digitally is required now more than ever and that a more forward-thinking approach to wage access is a clear need of the workforce.
Paul Bartlett, CEO at CloudPay said, “It’s no secret that families and businesses across the UK are feeling the full effects of the rising costs of living as it continues to have a deep impact on people’s lives. In this environment, we are encouraged to see people looking at ways they can better control their finances. While the use of physical ATMs has clearly increased, there is a huge opportunity for businesses to support their workers during this time of uncertainty with flexible access to their earned wages via a ‘digital ATM’.
“Pre-Covid, flexibility in the workplace wasn’t as common and the traditional payroll structure of monthly pay wasn’t questioned. Today, the workforce is waking up to the realisation that they are owed money by their employer and are becoming less willing to wait to be paid as a result. This sentiment will only snowball in the coming months. And with hiring difficulties still being reported across a number of sectors, businesses will struggle to both attract and retain the talent they need due to inflexibility around payment options.
“There’s a growing feeling across the workforce that people should be able to access the salary they have already earned when they want and need it, rather than wait until a designated pay day – or resort to loans or credit cards. We have found that employees that have access to our Pay On-Demand solution, CloudPay NOW, typically make four small withdrawals throughout the pay cycle when unexpected costs arise. With people increasingly struggling to make ends meet, employees are questioning why they must wait to be paid for work they have already delivered.
“The current economy should act as a catalyst for employers to drive change and make a positive impact on access to funds, rather than stick with what’s familiar.”