Nationwide Building Society has issued a significant and 'interesting' warning to its customers, highlighting a sustained rise in cash usage across the UK, a trend it says is being intensified by the ongoing disappearance of high street bank branches.
Cash Withdrawals Hit Record High
The UK's largest building society has reported that cash usage increased for the fourth consecutive year in 2025. Total cash withdrawn from its branch ATMs reached £4.2 billion, surpassing the previous peak of £4 billion recorded back in 2017.
Last year, Nationwide's network of 1,270 ATMs across 605 branches facilitated approximately 34.7 million cash withdrawals. This marked a six per cent increase compared to 2024 figures. The data also shows that the average amount taken out per transaction rose from £113 to £120.
A Warning from the Front Line
Mandy Beech, Director of Retail Services at Nationwide, provided context to these figures, framing the increase as a double-edged sword. While it demonstrates the enduring value customers place on physical money, she cautioned that the trend is being distorted by the shrinking banking landscape.
"Nationwide has the UK’s largest branch network and we see daily how our customers value cash and face-to-face service. That’s why we’ve promised to keep all our branches open until 2030," Beech stated.
She added: "ATM usage last year exceeded the previous peak in 2017 and while it is interesting to see ATM withdrawals continuing to rise, it is exacerbated by ongoing closures of bank branches."
The Wider Impact on Communities
The society's research reveals telling patterns about who is using its machines. Withdrawals by people who are not Nationwide customers rose by six per cent, a clear indicator that its ATMs are filling a gap left by other banks retreating from the high street.
Furthermore, a poll conducted by Nationwide found that 13 per cent of its customers – equating to around 7 million people – believe paying in cash makes saving money easier.
On the deposit side, Nationwide processed 4.2 million cash deposit transactions in 2025, with the average amount rising slightly from £278 to £281. However, the total volume of cash being deposited has fallen by four per cent since a peak in 2022.
This complex picture underscores a nation still reliant on tangible currency, even as the infrastructure supporting it continues to evolve and, in many places, contract.
