New cheque cashment plan to target the poor

Cash Centres, the biggest cheque cashment service in the UK, is in discussions with a major high street bank to launch a bank account targeting the poorest in society. The company, which was launched in 1992 and cashed &£150m worth of cheques last year, is also looking to add some 80 branches to its 240-strong network in the next year. Richard Perry, national business development manager of Cash Centres, says: “We believe there is a big market in servicing those people who cannot traditionally get bank accounts. “We are in discussions with a major high street bank over setting up some kind of current account. It {the account} will obviously cost that bit more.” Perry says the initiative is in the early stages of development. He expects any deal to see Cash Centres offering accounts through the partner bank’s branch network. Cash Centres was set up by Eddie Ford, a former pawnbroker, after the 1992 Cheques Act opened up opportunities for dedicated cheque cashment centres. The act puts legal responsibility onto the receiving bank if the cheque turns out to be stolen, making rigorous procedures necessary to ensure the identity of the customer and the cheque issuer. Many of the traditional cheque cashing services, such as pubs and corner shops, did not have the time or database infrastructure to carry out these check procedures, which can take 20 minutes the first time the service is used. Ford estimates that &£1.5bn in cheques was cashed in 1,200 centres last year by the tenth of UK adults excluded from mainstream banking.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here