Yes, the UK is small, but everything you’ve said doesn’t have anything to do with geographical scale.
We have online-only banks.
We have banks with huge physical high-street presence.
But the bottom line is if you’ve got a current account, you can withdraw cash for free at pretty much any ATM that isn’t in the back of a corner shop.
Getting charged money just to get hold of your own money? Pfffffft.
ETA: Also we have a requirement that banks offer a free, “basic” bank account with no charges (and no features, either, but eh)
https://www.gov.uk/government/news/fee-free-basic-bank-accounts-benefit-over-41-million-customers
We have online-only banks.
We have banks with huge physical high-street presence.
But the bottom line is if you’ve got a current account, you can withdraw cash for free at pretty much any ATM that isn’t in the back of a corner shop.
Getting charged money just to get hold of your own money? Pfffffft.
ETA: Also we have a requirement that banks offer a free, “basic” bank account with no charges (and no features, either, but eh)
https://www.gov.uk/government/news/fee-free-basic-bank-accounts-benefit-over-41-million-customers