Sainsbury's issues fresh update amid major change for customers

Sainsbury's has issued a new update amid a major deal with Natwest which will see the banking giant take on the retailer's main banking services. The retailer is selling its banking services in order to focus on its retail business.

The supermarket giant has now confirmed what will happen to its cash machines, which are not part of the deal with Natwest.

Sainsbury's said it has agreed to sell its ATM machines to operator NoteMachine. The firm will take over the management of around 1,370 of Sainsbury's cash machines, which are located at stores across the country.

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The retailer confirmed that all of the machines will stay open and in their current place, meaning people will still be able to access the free-to-use cash service outside supermarkets and smaller convenience stores.

NoteMachine is set to take full ownership of the ATMs by May next year and Sainsbury’s will continue to receive some commission from the income generated by the cash machines.

Simon Roberts, chief executive of Sainsbury’s, said: “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.

“We’re confident that NoteMachine is the right partner for us and our customers.”

It comes as Sainsbury’s is selling the bulk of its banking business - including personal loans, credit card balances and customer deposits - to Natwest after a deal was agreed earlier this year. The transition is set to be completed in the first half of 2025.

The retailer said it was winding down its banking division in order to focus on its retail business – a decision echoed by rival Tesco which also offloaded most of its banking activities to Barclays.

At the time of the announcement, Sainsbury's said banking customers will be transferred to Natwest at the start of next year. Mr Roberts said: "NatWest’s values and customer focus are a close fit with ours and as one of the UK’s leading banks, NatWest’s scale and financial services expertise will ensure our existing financial services customers continue to be well looked after. There will be no immediate change for our bank customers as a result of this announcement."