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.

 

[The winner is]

I feel scared I cant keep up, as I find it difficult to learn new things now.

 

[Iggydi]

Happen often? Rubbish, they happen occasionally, I can't remember a time when I couldn't use my card. Power outages are more common, and you're not buying anything as the shop will be closed, the service station bowser won't work, etc.

If we did go cashless, and I don't believe that will happen for decades if at all, there will be fallback options. When EFTPOS started there were fallback options and that would return.

AI - chatting online with non-humans has been happening for years, see you didn't even know, yet the world continues to turn.

I tried chatting with a stupid bl**dy AI when I couldn't set up something with my Debit Card. I am still waiting for the stupid thing to answer me. This was half way through January. I couldn't even get on to chat to a real person. Sometimes modern technology works but when it doesn't they are not the ones left frustrated and with no answers.

 

[Lesley Colclough]

It’s just another way of being told what to do with our money. And when the bank locks you card and you can’t do anything, not even pay for food, that’s a great way to go cashless. It’s not very nice when you get to the checkout and your card doesn’t work, I really believe that to go cashless is so stupid and there will be more people going without so much, and that’s not the way people want to live. Thank you

 

[BellaB18]

My husband is only 66 and he still prefers cash. He has no idea how to use an ATM machine he can do tap and go but anything over $100 needing a pin number he has no idea. I dare and tell him about this as he would have a meltdown worrying about it.
This new way isn't for everyone. My older mother prefers cash. I have an older friend who only uses cash and goes to the bank to withdraw cash. It's a lot of unnecessary stress for a lot of people.
Kind regards to all Vicki

 

[Ettyboo]

Our business is mobile, and there are several places with lousy coverage ,and we can only accept cash as our eftpos machines don't work. It's ok for city dwellers, but some country areas were still operating on 3g. When that went, there are huge black spots. Paying a couple of hundred dollars a month for Starlink adds to already increasing costs.

 

[Antique cue]

I dont think Anna Bligh would know truth if if hit her in the face, this is a globalist agenda and I don’t trust Bligh one bit didn’t trust her when she was Premier either especially over the vote on the amalgamation she lost the vote because the people said NO to amalgamating but she took no notice an amalgamated anyway ,and a lie because more and more people are using cash because they know what’s at stake once it goes cashless you will be tracked you will have no control of how you live your life banks and businesses will charge whatever fees they want , one thing is for sure you can’t trust politicians and banks they work hand in hand and always against the people, these are my options only .

 

[etphhome]

I nearly always used cash before Covid. Then we were told to use cards. That was understandable at the time. I probably use 50:50 cash to card. I like to have the option to use either.

 

[Veggiepatch]

I call BS on that, 2 hours, $10k, that's $83 dollars every single minute. They wouldn't have that in total sales, let alone just cash.

Were you at the Aldi store in question?

There is a very high probability you weren't so I'm calling out bullshit on YOU!!

Making up crap to suit your OWN agenda much?

 

[Aussiecris]

I agree with all the previous comments. Just because everybody isn't inconvenienced, doesn't mean the inconveniences aren't there. A very cold society coming without people interaction or personal service. A lot more ripoffs coming if cashless goes.

Have you ever been short changed, lost your wallet with cash in it?

 

[britus]

Concerns about increased false claims through scams and what protection do for all Australian especially the elderly. Systems tried have not been successful as cashless system do exist now without protection and regulation do not protect the vulnerable.

 

[Greg350]

If stores won’t take cash I leave and go to one that does , when they lose enough business, they will change or go broke.

But they are NOT losing business, wake up, it's happening and has been happening for 40 years

 

[Zemo]

Outages in internet connection and online scams happen often. Everyone should be using cash as back- up. Banks are continually closing branches, reducing staff and replacing jobs with tech, while profits rise. Can only imagine what A.I. they will use. We might think we are speaking with an employee only to find it is A.I...The commbank has stated last year it will not go cashless, can we believe them?

"Can we believe them?" In the same vein as we have implicit belief in what our -- any -- politicians say.

 

[Greg350]

Wake up stupid ,and get your head out of the sand , what the WEF has planned will prove you are in La la land.

Okay, when did the WEF say they want to control you? Give me a link to that?

 

[elaine41]

WELL, WHAT DO YOU KNOW? More silly comments. You will have to lump it or like it.
power outages, who used that should get their head out of their you know what. far and few around. in fact heaps more to happen yet for grizzlers to worry about I am sure of that,

Would you like to rewrite this in English that makes sense?

 

[eggshells]

MOre chance of being scammed with digital technowledgy.i still use a branch .I

 

[eggshells]

I will not use phone apps or QR Codes for that very reason. Recently I wanted to up my limit of how much I could transfer - I had to do it by a phone app and was told it was the safest way. (I didn't do ii) - the VERY
next day that app was hacked/scammed whatever you call it!!! The safest way heh????

 

[Miss Chris]

It’s all about choices though isn’t it. It seems that the bank big shots want to take away our choice to use cash if we want to, why do they get to control that choice, why should they be allowed to, why doesn’t our government stand up for us in this instance. Our age shouldn’t have anything to do with the choices we make in handling our money in whatever way we want………the only benefit I can see by going cashless, is that buyers and sellers of illicit drugs won’t be able to operate effectively without it…..

 

[Veggiepatch]

Wow!!! Anna does it again... Another hair-brain plan like the Traveston Dam ... that cost the tax payer millions. Properties purchased by the government had to be resold at an enorous loss.

Women are like teabags, You never know how strong they are till you dip them in HOT water""
signed Anna Bligh

How do we donate to the salvation Army shaking a box, leave money in the plate at church or the poor box. collect for disaster assistance like the christmas day tidal wave
The tooth fairy dies of starvatio
No Mobile phones when the tiwer are out and Telstra is NOT a giiod provider.
No more tuckshops for kids at school.

St vincent de Paul reduces their services.
All Cars stop when there is a power outage due to natural dissters. No Mobile phone or petrol
People die during th outages No heart machines working etc.
No Aircon in Mid Summer for Qld ... Age Care is cancelled due to no need whejn the age penioner die for heat or inopertaile life support..
Cashlees Soceiety? NO NO NO NO NO NO
ANNA BLIGH...What part of NO don't you
understand???

Your knowledge of Queensland political history is sadly lacking.

Peter Beattie was the Premier of Queensland when Traveston Dam was proposed in 2006, not Anna Bligh.

 

[Greg350]

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

WRONG AGAIN - The government froze the accounts of a few people who were controlling the protests which had closed down the city. Ratbag drivers who for over a month stopped all movement, so yes they had their accounts frozen, the ones that were known about. I guess you're happy to have, say Sydney, stopped totally for a month. Again, it applied to a few people, it was not a mass freezing of bank accounts.

See, this is what happens, you read a story in the media, trust exactly what it says, even though the media is known to exaggerate everything, and take that as gospel. No more research into it, no checking out what did happen, just repeat the same rubbish you read.

Normal conspiracy rubbish, that' show you people think.

 

[Greg350]

It’s all about choices though isn’t it. It seems that the bank big shots want to take away our choice to use cash if we want to, why do they get to control that choice, why should they be allowed to, why doesn’t our government stand up for us in this instance. Our age shouldn’t have anything to do with the choices we make in handling our money in whatever way we want………the only benefit I can see by going cashless, is that buyers and sellers of illicit drugs won’t be able to operate effectively without it…..

NO, no one is trying to take cash away. The story is saying PEOPLE are not using cash as much, TRUE.