Skingsley: Banks' cash services still needed
"In order to meet rapid technological developments on the payments market, it is not only important for market players to cooperate but also for the market to take a responsibility and not abandon cash and paper-based giro payments before there is a realistic alternative for all kinds of people everywhere." These are the comments of Deputy Governor Cecilia Skingsley today as she takes part in a panel debate, organised by the Swedish Bankers' Association, on how rapid technological developments, changes in customer behaviour and new market players are affecting the financial market.
Sweden has one of the world's most efficient payments markets – among the highest number of card payments per capita in the world. But a large volume of transactions are still made in cash. Almost 90 per cent of the Swedish population say that they have used cash in the past month. Many people also save in cash.
The payments market is changing rapidly, however, partly as a result of digitisation, which in itself is positive. New services emerge and old ones disappear, such as cheques. "It is possible that cash and giro forms are going the same way", Ms Skingsley says.
At the same time, there are specific groups in Swedish society, geographical areas and situations in which cash (and giro forms) remain the only alternative.
"It is therefore important for the banks to take a responsibility for their customers' needs and continue to supply cash services as long as their customer wish to continue using cash. Those who request cash services should, however, be prepared to pay for them," Ms Skingsley concludes.