From the healthcare industry to communication and even grocery shopping, digitalisation has become increasingly prevalent.

At the Seniors Discount Club, we closely monitor a notable development: the banking industry's rapid transition towards a cashless society.

As our world increasingly relies on digital technologies, there is a growing movement within the banking industry to reduce the reliance on physical cash.

However, it's important to consider the perspectives of individuals who may find this shift challenging.

The shift towards a cashless society has created significant challenges for those who rely on cash as their primary form of payment, such as the unbanked and elderly populations, exacerbating financial exclusion and limiting their access to essential goods and services. Image by naipo_de from Unsplash

Chris Grice, the Chief Operating Officer at National Seniors Australia, recently expressed concerns about the increasing push to discourage cash usage.

‘The feedback we're getting it is not as easy as, you know, just tap and go and away you go,’ he said.

Tap-and-go payments may seem convenient for some, but they present an unwelcome challenge for others, particularly when internet connectivity is sporadic, as is often the case in rural Australia.

The cost associated with digital transactions further exacerbates the situation.

Adding fuel to the fire, there have been reports suggesting that the Commonwealth Bank has been increasing its 'cashless' branches, a move that has been met with apprehension by older citizens who find comfort in the tangibility of cash transactions.

The digital divide and technological barriers further widen the gap, making it clear that the transition to a cashless society is far from inclusive and raises concerns about leaving vulnerable communities behind. Image from Flickr

Given these rattling reports, a spokesperson from the Commonwealth Bank issued a full statement:

They stated, ‘Cash withdrawals and deposits are available at all Commonwealth Bank branches and Specialist Centres.’

The Commonwealth Bank has created Specialist Centres in major metropolitan areas to provide personalised support for customers with more complex banking needs.

They added, ‘These Specialist Centres provide customers with face-to-face access to specialist home and business lenders and also offer the latest self-service technologies. All of our Specialist Centres are in major metropolitan locations and very nearby to full-service branches.’

‘We continue to maintain Australia's largest branch network for customers.’

Key Takeaways

• There are concerns that some Australians could be disadvantaged as the banking industry shifts towards digital transactions.
  
• National Seniors Australia's Chief Operating Officer has mentioned challenges around internet access in regional communities and the difficulties some face adapting to 'tap and go' transactions.
  
• Commonwealth Bank has reportedly increased the number of 'cashless' branches, raising concerns about increased transaction fees at ATMs and the loss of cash services for older Australians.
  
• In response, a Commonwealth Bank spokesperson clarified that cash withdrawals and deposits are available at all branches and Specialist Centres and have the largest branch network for customers in Australia.

In light of this, we must ask ourselves: Do these Specialist Centres do enough to bridge the digital divide for our citizens?

Navigating the digital world can be overwhelming for those accustomed to traditional banking methods.

While technological progress is inevitable and often beneficial, it is crucial to balance embracing advancements and ensuring inclusion for all.

Amid the efforts to move towards a cashless society, honouring those with differing preferences regarding handling money is also important.

Members, what are your thoughts on the increasing shift towards digital payments and the potential impact on individuals who may face challenges with this transition? Do you believe enough is being done to support you in the digital banking landscape?

 

[maggiej]

I try to use only cash but recently had to buy a new washing machine and dryer so resorted to a credit card. I don't like using them. But if it goes cash only how can we give the little ones a couple of dollars to go and buy an ice cream or gift them money for birthdays etc?.
I have always lived by the mantra of saving for a rainy day so if that day does not come what happens to all my saved money?
I hope this never happens while I am alive.

 

[Penny4]

I am technically savvy. I use digital bank transfers for my business, both for receipts and payments. I am terrified of being scammed and ripped off. In my personal life I withdraw cash weekly and only utilise that to make payments. Cash is still legal tender in Australia. If we acquiese and continue to use digital, we will lose cash. Then, how do you teach children the value of money? How do you teach them how to budget? How to put aside money and save? A century ago I was taught by my grandmother to allocate money in envelopes to pay for future bills. If you cannot physically experience this, how do you learn? Digital pockets? I don't think banks allow that. Many years ago I taught my children mathematics utilising 1 and 2 cent pieces and playing poker. I still have the tin containing these coins. I am also of the opinion that using a card increases spending as if you have cash, you know how much you have to spend, but if you just swipe away on the never never, you will overspend.

Do you have a RFID wallet? I have a ladies RFID wallet. I had to buy one a couple of years ago, when someone at the shops skimmed my card while walking around the shopping centre. I went to use it and it got halted from the bank, as they blocked it. It was a real pest, as I had to wait for a replacement card.
I also use a Faraday signal blocker key case for my car, as it's keyless, as it blocks hackers.

 

[Macarj]

I don't get charged for paying with cash, it's all these bloody idiots paying extra to use a plastic card to pay for a cup of coffee. I only use a card for expensive items, I have no problem with carrying a limited amount of cash.

You don't pay extra for a cup of coffee if you use a card at least not any cafe I go into

 

[Gsr]

Is it actually legal to refuse to accept cash? Surely it’s still legal tender!

It is still legal tender, personally I wouldn’t shop anywhere that doesn’t accept cash. If they don’t have a sign advising customers of this then I would force the issue if I have already for example, filled my car with fuel. I have noticed a lot more younger people dealing in cash at my work lately, so I think it will be a long time before we become a cashless society. A lot of people only carry a phone and boy that is a pain when the phone or the eftpos machine won’t work with each other. It can be a total inconvenience to everybody when we are busy. Same as people who want to use afterpay and such and don’t know how to set it up, they expect us register operators to know how to help, well sorry I don’t use any of these payment methods and have no idea how they work and don’t believe it is my job to know so I can help you. Sort it out BEFORE you try to use it so you don’t hold up other customers or pay another way.

 

[Gsr]

May I please ask how you read and responded to this? What device did you use?

No I don't think they are thinking about the old people or disability. And to pay bills not every one has a computer I don't have one and woulded no how to use one. What happened when computers are down in shop carnt use card but u can use cash.

Where I work we still have the old slide eftpos machines to use, but you need a card to use them, a phone doesn’t work. It is interesting watching the expressions on the younger team members and customers when they see this, most of them have never seen or used these machines before.

 

[PepeLePew]

I personally prefer to pay with cash. Then when I get home and empty my purse of all the change this money (5cents -$2 coins) goes into containers. This is how I save up for a rainy day. In the last 12 mths I have saved over $500 in coins and counting. This money is then used towards Xmas gifts for my grandchildren. If banks stop accepting cash deposits, how will one go about saving up.