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Concerns grow as more banks ditch access to cash

Macquarie's move to restrict cash services has angered those fearing people will be left behind.

Macquarie's move to restrict cash services has angered those fearing people will be left behind. Photo: AAP

Australian banks are under fire for removing customers’ access to cash, with controversial changes sparking calls for governments to step in and protect communities.

Macquarie Bank this week revealed plans to phase out cash, cheque and phone payments for customers in 2024 in a move to digital-only payments, that will also see a partnership it has with NAB come to an end.

And the Commonwealth Bank and ANZ restricted access to cash at some branches earlier this year, with the Commonwealth making its coin exchange service for business only.

Bank bosses say the transition to a cashless society will deliver more convenient services for customers, but the backlash is growing.

The banks are moving away from cash and closing branches to reduce their costs and maximise profits, not help users, Swinburne University Professor Steve Worthington said.

Call for government action

Worthington said the government should step in and protect customers by stopping banks like Macquarie from unilaterally restricting access to cash.

Vulnerable Australians and those living in rural and remote communities could be hit particularly hard if other banks follow suit, he said.

“They’re trying to push us to become more digitised,” Worthington said.

“But that’s a bit of a problem for us because it can be exclusionary … it’s an essential service and should be available to anyone who needs it.”

There are fears more banks will follow. Photo: TND/Getty

Macquarie Bank, in a letter to customers this week, said its move to a digital-only bank would deliver faster, safer and more convenient services for customers.

“The majority of our customers already bank digitally and we’re working very closely to support the less than 1 per cent of our customers who currently use cheques or cash to ensure they have access to other digital payment methods,” a Macquarie spokesperson said.

Too many left behind

That claim is disputed: Rhiannan Druce, general manager of the Junee Licorice and Chocolate Factory in regional New South Wales, fears many Australians are being left behind.

“People in regional areas constantly have challenges around internet access so using cash is often an easier option, making the local bank branch and cash services important to those in country towns,” Druce said.

“There is concern other banks will follow Macquarie Bank’s lead, which unfortunately feels inevitable.”

Macquarie’s move to ditch cash is the biggest step towards digital-only banking yet in Australia, though other larger institutions have dipped their toe in recently, with ANZ Bank and Commonwealth Bank notably moving to stop accepting cash over the counter at some branches.

However, cash withdrawal and deposit services are still available at these branches, meaning they have not gone as far as Macquarie.

Outages too common

Worthington said that outages of digital payment systems are far too common for banks to move away from cash services.

Traditional methods of exchange are more reliable and provide a good back up when online services falter, he said.

The fear is that banks will gradually remove cash services in “dribs and drabs” similar to moves in recent years to close bank branches across the nation, leaving customers without access.

“There’s a need for regulatory action here,” Worthington said.

“We have to preserve access to cash but also ensure it can be used everywhere too.”

A parliamentary inquiry next week will hear from concerned members of the public about bank branch closures as major banks face ongoing protests about the rollback of physical services.

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