Major bank goes cashless to become 'completely digital'

The banking landscape is undergoing a seismic shift, and Macquarie Bank is at the forefront of this change.

In a move that signals the future of financial transactions, Macquarie Bank has announced that it will transition to a fully digital model, eliminating cash and cheque services at its branches later this month.

This decision is a clear nod to the rapidly evolving consumer behaviour and the increasing reliance on digital banking solutions.



Macquarie Bank announced in September 2023 that it would gradually eliminate cash and cheque services from all its banking and wealth management products between January and November 2024.

From May 20, customers will no longer be able to order new cheque or deposit books, and phone banking services have ceased since the start of March.


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Macquarie Bank announced it will go completely cashless. Credit: Shutterstock


‘Instead, you’ll be able to make payments digitally—a safer, quicker, and more convenient way to bank,’ Macquarie Bank said.

Additionally, Macquarie's partnership with NAB branches will end, meaning that cash and cheque deposits and withdrawals will not be available for Macquarie customers at National Australia Bank (NAB) branches from 1 November.

Commonwealth Bank, NAB, and ANZ have stopped handling cash in some of their branches and reassured customers that they will maintain in-branch cash services.



The Australian Banking Association (ABA) reported that nearly 99 per cent of all customer interactions with banks now occur digitally, while over 1600 Australian bank branches closed between 2017 and 2022.

The Reserve Bank of Australia (RBA) has noted that the COVID-19 pandemic accelerated the decline in cash use, with only around 13 per cent of payments made using cash in 2022, a significant drop from 70 per cent in 2007.

Furthermore, the Australian Bureau of Statistics (ABS) has highlighted a dramatic decrease in ATM use, from 78 million withdrawals in December 2008 to just 30 million in June 2023.

Despite the decline, RBA reported that cash acceptance remained relatively high, with 94 per cent of businesses still accepting cash as of June 2022 from 99 per cent in February 2020.



Experts have varying opinions on the future of cash.

‘I’d say we’ll be functionally cashless by the end of 2025—it’ll just be a complete rarity,’ Richard Holden, a Professor of Economics at the University of New South Wales Business School, said.

‘But unless the government gets involved to accelerate the process, I think we’ll be actually cashless by 2030.’

Holden also claimed that there were only a few reasons to use cash ‘other than illicit acts or people who want to use cash to hide things from people’.

On the other hand, Chris Vasantkumar, a lecturer at Macquarie University, believed that cash is ‘unlikely to go away completely’.



‘On a personal level, some folks (indeed some societies) have serious concerns about lack of privacy—this is the flip side of a popular argument for moving to cashless transactions—decreased crime as a result of increased transparency,’ Vasantkunar said.

‘But one person’s transparency is another person’s surveillance. How much information about our economic behaviour are we comfortable giving up?’

Dr Angel Zhong, Associate Professor of Finance at the Royal Melbourne Institute of Technology (RMIT), predicted that 90 per cent of society would go cashless, but ‘it does not mean that cash as a legal tender will lose value or disappear from society’.

‘People who don’t use cash might still be concerned about the security of their digital transactions and the safety of their financial information,’ she said.

‘Even though they don’t use cash, people might still be wary of becoming too dependent on digital technology for everyday transactions.’
Key Takeaways

  • Macquarie Bank will become completely cashless this month as part of its move towards a fully digital service model.
  • The bank is ending cheque and cash services and has already ceased phone banking services, focusing on digital payments, which they deem safer and more convenient.
  • Other big banks in Australia have reassured that they will maintain in-branch cash services despite a general trend of declining cash usage.
  • Experts predicted Australia may become functionally cashless by the end of 2025, though a completely cashless society might only be realised by 2030, and cash is expected to retain value for privacy concerns and as a legal tender.
Have you been affected by the reduction of cash services? Let us know in the comments below.
 
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Vote with your feet people. Remove your money and close your account.
"...you’ll be able to make payments digitally—a safer, quicker, and more convenient way to bank.." What a joke. All we hear on a daily basis is how more and more people are losing their money to scammers who are becoming more and more sophisticated in getting your money. I sometimes wonder about these 'scammers' and whether or not they have a connection to large banking corporations...
All you hear on a daily basis are people who fall for scams. That has nothing to do with cash being available. And you insinuation that scammers are connected with banks, ridiculous.
 
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Reactions: freedy50
Well, It damn well shouldn't be legal ! The Government should prosecute ANY business that refuses to accept Australian Legal Tender.
This is what the ACCC says. Go and argue with them about it...

Cash​

Businesses can choose which payment types they accept. It is legal for a business to specify the terms and conditions that they will supply goods and services. This includes whether they will accept cash payment. However, consumers must be made aware of these terms and conditions before they make a purchase.

Businesses should be clear and upfront about the types of payments they accept, and the total minimum price payable for their goods and services.
 
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Reactions: JimmyFlatrock
Vote with your feet people. Remove your money and close your account.
"...you’ll be able to make payments digitally—a safer, quicker, and more convenient way to bank.." What a joke. All we hear on a daily basis is how more and more people are losing their money to scammers who are becoming more and more sophisticated in getting your money. I sometimes wonder about these 'scammers' and whether or not they have a connection to large banking corporations...
What?:unsure: "Remove your money and close your account". So people don't want bank branches to close, but you want people to close their accounts. If a lot of people did take notice of that silly suggestion how will that help banks stay open if nobody has an account with them? I don't think you've thought this through properly? :rolleyes:
 
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Reactions: Veggiepatch
Banks running the country, when did it become law that cash cannot be used.
The reason they want it cashless, making huge profits from the interest on cards.
What is our Government doing about this and every other institution doing the same thing, obviously as usual, a big fat nothing.
It’s disgraceful.
No law says that cash cannot be used..if a sign is displayed.
 
Why are people so afraid of change.. remember when this, remember when that, you are not remembering the being out but your cash was at home. Remember when you wanted to buy something and you had no cash...after 4 the banks are closed... you are stuck. Change needs to be kept up with or we fall behind. Believe me no one will care that a minute percentage of the population want to pay everything with cash. Don't get left behind
 
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Reactions: JimmyFlatrock
Banks running the country, when did it become law that cash cannot be used.
The reason they want it cashless, making huge profits from the interest on cards.
What is our Government doing about this and every other institution doing the same thing, obviously as usual, a big fat nothing.
It’s disgraceful.
Hugh profits from cards??? You do realise that Debit Cards exist? They access YOUR money, not the banks, no interest to pay. So many people whinge and whine about topics and they know little about them.
 
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Reactions: JimmyFlatrock

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