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.

 

[oldbushrat]

Mostly because the banks have closed down and we have no real access to cash! We're being forced into a lose-lose situation, and not everyone is happy with it.

 

[Leenie]

I know very well what they have said and it's NOT what your imagination is telling you.

You are a paranoid conspiracy theorist, you read into comments and make assumptions, make up what you think they are saying. And it's not you, you are following other nutcases on You Tube, Tik Tok, Facebook, etc.

You tell me to research this, hahahaha, that's funny, if you knew what I do on a daily basis you would know I'm very well aware of world events.

How can I find something that doesn't exist, that's why I asked you for an example, but if course YOU can't do that because you don't know where to look just parroting others.

I am not following anyone for your information,you know nothing about me , as for You Tube, Tik Tok, Facebook etc I don’t bother with that rubbish. You have your beliefs,I have. Mine .

 

[Sej]

One really dreadful (and frightening )aspect of this 'digital world' is the number of online payment systems
set up by very possible type of vendor/retailer which just DO NOT WORK. If one has gone to all the trouble (often considerable) of working out how to express and document one's order, one has the right, I feel, to a seamless checkout. Again and again, my perfectly good cards are rejected as 'incorrect' or 'invalid'. And there is absolutely no-one, at an online checkout whom one can ask for help, or to whom one can complain.

 

[Miss Chris]

Every Post Office in the country can be used to access most bank accounts. It is not difficult at all, people just do not like change.

You’re right…Sometimes change is a good thing, sometimes it’s not, and of course there’s those whose comfort zone is severely rattled……but there are those, especially the elderly in our population who find it very difficult to adapt to change, simply because they just don’t understand, or are afraid, or just don’t have the ability to understand. I wasn’t aware that most post offices are able to handle banking transactions and accounts balances as well as withdrawals and deposits &etc , probably because I’ve never needed to know although I do get my travel money card from the post office sometimes……I don’t know either if that’s an easy option for those who are impacted by the availability of physical banks….it seems a good option though……apparently not all post offices offer that service so it’s best to check first.. There are still a lot of people who don’t have computers or smartphones so I do hope there’s a lot on here who actually know that….

Bank@Post

Deposit or withdraw cash and check your account balance at selected Post Offices with Bank@Post. Access banking services across Australia with Australia Post.

auspost.com.au

 

[dabski2]

Cash is King and stuff there digital transformation. When the power fails, how do you do anything?
When they decide, for whatever reason, not to pay you a sum of cash from your account in any format Then what are you supposed to do?