Sainsbury's sells off cash machines in bid to reduce costs amid NatWest deal
Back in January, Sainsbury's said it would be undertaking a "phased withdrawal" from its banking operations
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Sainsbury's has sold off its cash machine operations in a major cost-cutting move as it simplifies its banking operations further.
Back in January, the retail giant said it would be undertaking a "phased withdrawal" from said operations, starting with the June sale of much of its banking business to NatWest.
That June deal saw NatWest's assets soar by some £2.5billion, and accounts by about 1 million - in a move mirroring Tesco's sale of its own online banking arm to Barclays.
At the time, Sainsbury's kept hold of its insurance, travel money and cash machine wings - but it's the latter of those which has been canned, an announcement today confirmed.
The supermarket has seen its nearly 1,400-strong contingent of ATMs sold to NoteMachine
The country-wide supermarket has seen its nearly 1,400-strong contingent of ATMs sold to NoteMachine - a cash machine firm potentially recognisable to customers by its bright blue lights on its 'holes in the wall' across the UK.
Sainsbury's was quick to reassure patrons that they'll still be able to withdraw their physical earnings, however.
A statement on Wednesday confirmed that "all ATMs will remain open and in position at the existing sites, meaning customers will still receive convenient, free access to cash, with no change to how they currently withdraw their money".
The supermarket's chief executive Simon Roberts said of the move: "We are really pleased that we can keep offering our customers free access to cash at all of our existing locations while also simplifying our banking business and reducing our costs.
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NoteMachine may be recognisable to customers by its bright blue lights ATMs across the UK
NOTEMACHINE, A BRINK'S COMPANY
"We're confident that NoteMachine is the right partner for us and our customers."
At the same time, NoteMachine's own CEO Steve Makaritis said: "This agreement aligns perfectly with our mission to make banking easier, more convenient and accessible for all.
"By expanding our ATM network, we are taking another step toward providing exceptional service, whether in urban or rural areas.
"We are excited to be working with Sainsbury's to continue to provide this valuable service across the UK as we strive for continued access to cash and other banking options.
Sainsbury's execs have pledged to continue giving customers "free access to cash at all of our existing locations"
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"We look forward to building on the strengths of both companies as we continue to innovate and enhance the way customers access financial services."
The deal, expected to be completed in May 2025, will see all 1,370 ATMs remaining open and in position at their existing sites, while Sainsbury's and NoteMachine will share commission.
Financial details of the deal have not yet been disclosed.