As Australians navigate through the digital age, the way people handle their finances could be undergoing a significant shift.

The Australian Banking Association (ABA) has recently shed light on the future of banking in Australia, and it could be a dramatic change, especially for seniors.

With the decline of cash transactions and the rise of digital payments, the traditional bank branch as we know it is poised for a transformation.

ABA Head Anna Bligh highlighted that Australia could be in the midst of the 'biggest transformation in the history of the country', especially when it comes to banking services.

The digitisation of financial transactions could slowly become a new reality for the country.

Digital payments, such as tap-to-go payments, have seen a significant rise over the past years. Image Credit: Pexels/Ivan Samkov

Bligh sat down with 2 GB's Michael McLaren for a conversation about these changes in Australians' finances.

'We are, as Australians, using less and less and less cash,' Ms Bligh shared, underscoring the profound implications this trend has for the banking sector.

Back in 2007, 70 per cent of all transactions in Australia were conducted with cash.

Fast forward to today, it has plummeted to around 10 per cent.

According to the Reserve Bank of Australia's (RBA) predictions, cash transactions could dwindle to four per cent by 2030.

This decline is not just a reflection of consumer preference but also a testament to the convenience and security that digital payment methods offer.

What does this mean for banks and senior customers?

According to Bligh, the reduced use of cash could alter the role and function of these bank branches.

Visiting a branch to withdraw or deposit cash could become a thing of the past.

This shift could also be evident in the mortgage industry, where 75 per cent of home loans in Australia are being facilitated by mortgage brokers who often provide in-home services.

In response, some banks have been adapting to these changes.

Westpac recently reopened three regional branches in New South Wales, Victoria, and Tasmania as new Service Centres.

However, instead of traditional teller services, customers need to access SmartATMs for cash transactions.

Additionally, these centres would offer face-to-face support for both retail and business customers, digital banking assistance, lending support and help with scams, among others.

However, the move towards a cashless society has challenges.

Many seniors may have concerns about the security of digital payments, the learning curve associated with new technology, or the loss of personal interaction bank branches often provide.

Another concern could be the accessibility of digital banking apps, as they could be susceptible to downtime.

Banks need to ensure that the shift to digital banking should be inclusive and accessible to all Australians, regardless of age or technological proficiency.

The move towards a cashless society has been accelerating.

For seniors, staying informed about these changes could be the key to navigating these changes.

Key Takeaways

• The Australian Banking Association indicated that banks in Australia could change significantly due to less cash being used.
• Anna Bligh stated that Australia is witnessing the 'biggest transformation in the history of the country' with the move towards cashless transactions and digital banking.
• The use of cash for payments has dramatically dropped from 70 per cent in 2007 to around 10 per cent, with predictions it could fall to four per cent by 2030.
• Changes in customer behaviour have been influencing the move away from traditional banking models, prompting banks to find new ways to serve customers.

How do you feel about the move towards a cashless society? Are you ready for the changes ahead, or do you have reservations? Share your thoughts and opinions about digital banking in the comments below.

 

[kevj]

ex premier head of ABA sounds like a job for the elite

 

[Nan G]

No i feel i have no control on my account. For instance the account is changing n if you don't accept the changes on your app you don't get access to it. Iv inquired about it. So who has control the bank does n you have no say. He was quite rude about it accept or you just loose your access ...UNFAIR ITS MY MONEY

 

[elaine41]

there Will be no more people Being able to sell second hand goods they no longer want on market place, garage sales or market stalls. Kids being able to mow peoples lawns or help with a bit of gardening for pocket money. I feel there is a place for both digital and cash. I volunteer in an op shop the amount of people buying things for a $1.00 and use their cards. It costs the shop more to put that transaction through. Pretty soon you won’t be able to buy anything under $5 because of of the fees. I believe the push towards cashless has to do with the government being able to track what you make and able to tax you.

Our local op shop has a minimum spend of $10 to use a card. Otherwise, use cash. This keeps cash in the market place & saves the fees for the op shop

 

[elaine41]

I will never do online banking. That is the easiest way for scammers to access your bank a/c & steal your money & you have no idea they have done that until you go shopping again & your card is rejected due to lack of funds.
I also don't understand apps or how to add them to my phone & have no desire to learn this new thing. My phone is just that - a phone. Even though it has other things on it I never use them. All I wanted when I bought it was a phone but I couldn't buy one without all these other gadgets included.

 

[Wieso]

Another nutcase, paranoid about the world.

Another nutcase, paranoid about the world.

I guess you haven't considered she Greg350 could be right ???

 

[Vet543]

The idea stinks.
... What do we leave out with the milk bottles?
How do we donate to the Salvation Army, it in the plate on Sundays, tip the delivery boys or girls, put in the parking meter.
How do we pay THE TOOTH FAIRY or give the kids money for the tuckshop
I can imagine EVERY kid in Australia with his or her OWN CREDIT OR DEBT CARD.
Wow .!!! The scam business shares just rose 300 percent overnight.
BANK FEES. Rise ACCORDINGLY
MORE bank employees to resolve banking scam.
The larger safe makers buying 2 million dollar homes
CASHLESS SOCIETY?.
NO NO NO NO NO NO
. WHAT PART OF NO Don't YOU UNDERSTAND, Anna Bligh?

 

[June E]

Hopefully they will keep cash going until the next generation of ‘old people’ have got used to a cashless world, and this generation of oldies are dead and gone.

 

[Jean55]

I don’t like the fact that you get a charge on your debit card when you use it in shops. It’s your money and you are are being charged for using it

 

[GrannyJA!]

My problem with the 'new technology' is that it seems like the banks are always one step behind the scammers. I bank with St George (Westpac owned) and had a potentially fraudulent experience. It took me 45 minutes to get through to a human being and by that time, some mug could have cleaned out my bank account.

 

[ZipZap60]

I need Cash as my Neighbours go get my Food Shopping for me I hate Tap my Card mainly for what it really Costs and I dont have a Car and im Disabled I cant get Buses as they make my Pain Worse because they shake my Body

 

[Jennylolo]

we had a 4 day blackout last major one towards end last year. Everything stopped, shops, online, ATMs, traffic lights etc. My area was last to go back online.

Taking away ATMs and branches have forced us to go to digital. I moved 13 years ago, and in my area there were numerous ATMs everywhere and 4 branches I could go to south of CBD, now there is one branch only. All the branches you had to wait in line including out the door. and ATMS have been stripped everywhere.

With issues, loans etc,people need to talk someone, over phone can wait hours to get answered or call back, then can't understand the person, or that's not their field. It's forcing so many documents having to be sent online- all our details and ID in some cases.

People would use ATMs and go into branches to withdraw cash if they were available.
To give % of usage at 2007, make it more relevant- covid 19 on, everywhere simply stopped accepting cash. Wasn't our choice. And more facilities were taken saying due to lack of cash!

There are still people without mobile phones- all ages, don't use internet, don't use credit cards. They rely on landlines and ATMs to get cash and paying bills by mail, cheques if you can get them or at post offices.

We should not be forced to go fully online. Stop taking away all the facilities.

 

[IAN3005]

Another step to total control over citizens, ONE WORLD ORDER getting closer,we need to step and fight for our rights .

I've been saying this for years now........

 

[Leenie]

A comment from "another nutcase paranoid about the world"
Keep in mind the control that can be levied in a cashless society.
Some Aboriginal communities come to mind.
It may get to the stage where..
Your purchase has been refused...because of any number of reasons, etc etc.

Remember what happened to the protesting truckies in Canada ,the banks froze their accounts.

 

[NotNats]

That so-called up swing in using a digital platform has only happened because the government & the banks have forced us to use it. I live in a country town and the only way I can go to a ANZ branch is to drive a over 2hr & at least 130+kms there & back to my home each time I wish to use cash. We don't even have an ANZ ATM to use.

 

[DaddyRon]

We are using less and less cash because a lot of retailers now, won't accept it !!
Plus the fact that people are shopping more online now, due to prices being a lot cheaper.
All part of the agenda to make us a cashless society, so the government has complete control over us !!
This should never happen.

 

[Chess lover]

Technology is good when it comes to banking but we must have an option to withdraw cash and use cash as we need it just can't be beneficial for banks only. You have to consider all ages especially the elderly and I believe a lot of people are against going cashless.
I for one use internet banking but I still want the option to have cash and withdraw when needed. As I like to give my nephews and niece's cash for birthdays, Christmas etc
So I'm definitely against cashless society. We have to have control over our own money not be controlled by the banks.
It causes a lot of anxiety to a lot of people with all these changes so please respect people's ownership and their mental health. Not everyone is Tech savvy.

 

[NotNats]

We are using less and less cash because a lot of retailers now, won't accept it !!
Plus the fact that people are shopping more online now, due to prices being a lot cheaper.
All part of the agenda to make us a cashless society, so the government has complete control over us !!
This should never happen.

But when grocery shopping a lot of items are not cheaper. Just take cases of can drinks. If you buy a 30 pack in store a lot of the time due to the so called special its about $26.00, but if you buy it online there is NO special and you can only buy it a FULL price about $50.00. And I have notice this with a lot of other items as well.

 

[Strider]

Why would we have a staunch Labor leader head of the ABA? We all know how bad they are managing money. Of course they'd be happy to control our money and the best way to do this is go digital.

 

[Leenie]

I've been saying this for years now........

The problem is the government’s and banks etc are doing what the UN and WEF want , if anyone remembers all governments spoke from the same rule book about COVID word for word. We need our sovereignty back from these despots so our country is in Australia’s control as it used to be ,our lives were a lot better.

 

[Leenie]

Why would we have a staunch Labor leader head of the ABA? We all know how there bad they are managing money. Of course they'd be happy to control our money and the best way to do this is go digital.

She was a poor Premier.the only good thing she did was block us from being charged for our Tank water .