As our world continues to become digitalised by the day, with many of us able to do almost anything with the click of a button, the use of physical currency has reportedly declined.

Still, many prefer to carry around cash as not everyone is comfortable with online transactions or has access to the internet all the time.

However, it seems that keeping cash comes with its own cost.

This is according to Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA), who claimed that every customer is losing $40 per year by keeping cash.

The executive joined the CEOs of Australia and New Zealand Banking Group Limited (ANZ), National Australia Bank (NAB), and Westpac in a Senate inquiry into regional bank closures at Parliament House in Canberra last Wednesday, September 20.

Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA) claimed that every customer is losing $40 per year by handling cash. Credit: Commonwealth Bank of Australia

The inquiry focused on the debate about the country’s move to a cashless society.

Mr Comyn argued that the costs of running 728 CommBank branches, which amount to $1 billion a year, to sell loans and manage cash transactions were becoming unsustainable since the demand had reduced.

‘Transporting and making cash available around our vast country involves the considerable expense of logistics and security,’ Mr Comyn said in the hearing.

‘We estimate that continuing to support distribution and availability of cash costs CBA approximately $400 million each year—which works out to roughly $40 for every one of our 10 million customers. Many of our customers don’t use cash though—and these customers cross-subsidise those that do,’ he explained.

It was reported that the CBA network had seen a decline in cash transactions in recent years.

‘Five years ago, 43 per cent of all point of sale transactions were cash,’ he shared.

‘Today, the figure is around 15 per cent. And yet every week customers transact more than $18 billion through the CommBank app—an increase of 64 per cent in just two years,’ he added.

However, Mr Comyn also stressed that CommBank has no plans to remove cash altogether, unlike Macquarie Bank.

‘We certainly have no plans to remove cash distribution or the provision of cash in Australia,’ he assured. ‘I don‘t think that’s feasible, and I don’t think that would be desirable, certainly in the foreseeable future.’

It was recently revealed that Macquarie Bank plans to phase out cash, cheque and phone payment services starting in January 2024. You can learn more about that story here.

The other CEOs also gave evidence about the dominance of digital transactions.

Westpac CEO Peter King stated that 96 per cent of customers’ transactions are now digital, while NAB boss Ross McEwan claimed theirs was 93 per cent.

Meanwhile, ANZ CEO claimed that more than 90 per cent of their customers aged over 65 ‘use at least one self-service option to do their banking, such as our ANZ app, internet banking or ATMs’.

‘While most customers prefer digital channels for many of their transactions, branches continue to be important,’ Mr Elliot emphasised.

Due to the Senate inquiry, CBA has paused all their regional bank closures until 2026.

‘As time goes on, it becomes unsustainable to invest substantial resources keeping expensive services that fewer and fewer customers use,’ Mr Comyn shared.

He also urged rural and regional customers to bank with CBA, saying: ‘Our decision to pause rural bank closures is predicated on customers and communities valuing our decision to stay.’

‘So for other local councils, small businesses, farmers, homeowners and regional areas, if you value CBA supporting your communities, we will be delighted to serve you.’

The Financial Sector Union estimated that more than 1,600 bank branches were closed nationwide in the five years to June 2022, with a disproportionate number located in regional and rural areas.

Without government intervention, it seems like the trend will continue—especially when the customer demand switches to online banking.

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

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

Key Takeaways

• Commonwealth Bank of Australia’s (CBA) Chief Executive, Matt Comyn, told a Senate inquiry that keeping cash costs every customer around $40 annually.
• He argued the cost of running branches and managing cash transactions is becoming increasingly unsustainable as customer demand diminishes.
• Cash transactions across the CommBank network have decreased in recent years from 43 per cent to 15 per cent.
• CommBank confirmed it has no plans to remove cash distribution or provision in Australia despite increased digital transactions.
• According to estimates from the Financial Sector Union, over 1,600 bank branches were closed across Australia in the five years leading to June 2022, with a disproportionate number located in regional and rural Australia.

Members, what’s your take on this story? Share your insights in the comments below!

 

[Sockjoan]

As our world continues to become digitalised by the day, with many of us able to do almost anything with the click of a button, the use of physical currency has reportedly declined.

Still, many prefer to carry around cash as not everyone is comfortable with online transactions or has access to the internet all the time.

However, it seems that keeping cash comes with its own cost.

This is according to Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA), who claimed that every customer is losing $40 per year by keeping cash.

The executive joined the CEOs of Australia and New Zealand Banking Group Limited (ANZ), National Australia Bank (NAB), and Westpac in a Senate inquiry into regional bank closures at Parliament House in Canberra last Wednesday, September 20.

View attachment 30554

Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA) claimed that every customer is losing $40 per year by handling cash. Credit: Commonwealth Bank of Australia

The inquiry focused on the debate about the country’s move to a cashless society.

Mr Comyn argued that the costs of running 728 CommBank branches, which amount to $1 billion a year, to sell loans and manage cash transactions were becoming unsustainable since the demand had reduced.

‘Transporting and making cash available around our vast country involves the considerable expense of logistics and security,’ Mr Comyn said in the hearing.

‘We estimate that continuing to support distribution and availability of cash costs CBA approximately $400 million each year—which works out to roughly $40 for every one of our 10 million customers. Many of our customers don’t use cash though—and these customers cross-subsidise those that do,’ he explained.

It was reported that the CBA network had seen a decline in cash transactions in recent years.

‘Five years ago, 43 per cent of all point of sale transactions were cash,’ he shared.

‘Today, the figure is around 15 per cent. And yet every week customers transact more than $18 billion through the CommBank app—an increase of 64 per cent in just two years,’ he added.

However, Mr Comyn also stressed that CommBank has no plans to remove cash altogether, unlike Macquarie Bank.

‘We certainly have no plans to remove cash distribution or the provision of cash in Australia,’ he assured. ‘I don‘t think that’s feasible, and I don’t think that would be desirable, certainly in the foreseeable future.’

It was recently revealed that Macquarie Bank plans to phase out cash, cheque and phone payment services starting in January 2024. You can learn more about that story here.

The other CEOs also gave evidence about the dominance of digital transactions.

Westpac CEO Peter King stated that 96 per cent of customers’ transactions are now digital, while NAB boss Ross McEwan claimed theirs was 93 per cent.

Meanwhile, ANZ CEO claimed that more than 90 per cent of their customers aged over 65 ‘use at least one self-service option to do their banking, such as our ANZ app, internet banking or ATMs’.

‘While most customers prefer digital channels for many of their transactions, branches continue to be important,’ Mr Elliot emphasised.

Due to the Senate inquiry, CBA has paused all their regional bank closures until 2026.

‘As time goes on, it becomes unsustainable to invest substantial resources keeping expensive services that fewer and fewer customers use,’ Mr Comyn shared.

He also urged rural and regional customers to bank with CBA, saying: ‘Our decision to pause rural bank closures is predicated on customers and communities valuing our decision to stay.’

‘So for other local councils, small businesses, farmers, homeowners and regional areas, if you value CBA supporting your communities, we will be delighted to serve you.’

The Financial Sector Union estimated that more than 1,600 bank branches were closed nationwide in the five years to June 2022, with a disproportionate number located in regional and rural areas.

Without government intervention, it seems like the trend will continue—especially when the customer demand switches to online banking.

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

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

Key Takeaways

• Commonwealth Bank of Australia’s (CBA) Chief Executive, Matt Comyn, told a Senate inquiry that keeping cash costs every customer around $40 annually.
• He argued the cost of running branches and managing cash transactions is becoming increasingly unsustainable as customer demand diminishes.
• Cash transactions across the CommBank network have decreased in recent years from 43 per cent to 15 per cent.
• CommBank confirmed it has no plans to remove cash distribution or provision in Australia despite increased digital transactions.
• According to estimates from the Financial Sector Union, over 1,600 bank branches were closed across Australia in the five years leading to June 2022, with a disproportionate number located in regional and rural Australia.

Members, what’s your take on this story? Share your insights in the comments below!

Yay! I hate having to cart cash round with me.

 

[Cheezil]

As our world continues to become digitalised by the day, with many of us able to do almost anything with the click of a button, the use of physical currency has reportedly declined.

Still, many prefer to carry around cash as not everyone is comfortable with online transactions or has access to the internet all the time.

However, it seems that keeping cash comes with its own cost.

This is according to Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA), who claimed that every customer is losing $40 per year by keeping cash.

The executive joined the CEOs of Australia and New Zealand Banking Group Limited (ANZ), National Australia Bank (NAB), and Westpac in a Senate inquiry into regional bank closures at Parliament House in Canberra last Wednesday, September 20.

View attachment 30554

Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA) claimed that every customer is losing $40 per year by handling cash. Credit: Commonwealth Bank of Australia

The inquiry focused on the debate about the country’s move to a cashless society.

Mr Comyn argued that the costs of running 728 CommBank branches, which amount to $1 billion a year, to sell loans and manage cash transactions were becoming unsustainable since the demand had reduced.

‘Transporting and making cash available around our vast country involves the considerable expense of logistics and security,’ Mr Comyn said in the hearing.

‘We estimate that continuing to support distribution and availability of cash costs CBA approximately $400 million each year—which works out to roughly $40 for every one of our 10 million customers. Many of our customers don’t use cash though—and these customers cross-subsidise those that do,’ he explained.

It was reported that the CBA network had seen a decline in cash transactions in recent years.

‘Five years ago, 43 per cent of all point of sale transactions were cash,’ he shared.

‘Today, the figure is around 15 per cent. And yet every week customers transact more than $18 billion through the CommBank app—an increase of 64 per cent in just two years,’ he added.

However, Mr Comyn also stressed that CommBank has no plans to remove cash altogether, unlike Macquarie Bank.

‘We certainly have no plans to remove cash distribution or the provision of cash in Australia,’ he assured. ‘I don‘t think that’s feasible, and I don’t think that would be desirable, certainly in the foreseeable future.’

It was recently revealed that Macquarie Bank plans to phase out cash, cheque and phone payment services starting in January 2024. You can learn more about that story here.

The other CEOs also gave evidence about the dominance of digital transactions.

Westpac CEO Peter King stated that 96 per cent of customers’ transactions are now digital, while NAB boss Ross McEwan claimed theirs was 93 per cent.

Meanwhile, ANZ CEO claimed that more than 90 per cent of their customers aged over 65 ‘use at least one self-service option to do their banking, such as our ANZ app, internet banking or ATMs’.

‘While most customers prefer digital channels for many of their transactions, branches continue to be important,’ Mr Elliot emphasised.

Due to the Senate inquiry, CBA has paused all their regional bank closures until 2026.

‘As time goes on, it becomes unsustainable to invest substantial resources keeping expensive services that fewer and fewer customers use,’ Mr Comyn shared.

He also urged rural and regional customers to bank with CBA, saying: ‘Our decision to pause rural bank closures is predicated on customers and communities valuing our decision to stay.’

‘So for other local councils, small businesses, farmers, homeowners and regional areas, if you value CBA supporting your communities, we will be delighted to serve you.’

The Financial Sector Union estimated that more than 1,600 bank branches were closed nationwide in the five years to June 2022, with a disproportionate number located in regional and rural areas.

Without government intervention, it seems like the trend will continue—especially when the customer demand switches to online banking.

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

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

Key Takeaways

• Commonwealth Bank of Australia’s (CBA) Chief Executive, Matt Comyn, told a Senate inquiry that keeping cash costs every customer around $40 annually.
• He argued the cost of running branches and managing cash transactions is becoming increasingly unsustainable as customer demand diminishes.
• Cash transactions across the CommBank network have decreased in recent years from 43 per cent to 15 per cent.
• CommBank confirmed it has no plans to remove cash distribution or provision in Australia despite increased digital transactions.
• According to estimates from the Financial Sector Union, over 1,600 bank branches were closed across Australia in the five years leading to June 2022, with a disproportionate number located in regional and rural Australia.

Members, what’s your take on this story? Share your insights in the comments below!

Why would we trust these CEOs (who are so far removed from reality) & the figures they present (evidence)
Just like supermarket CEO's or Qantas CEO's, etc they believe their own words so they think the rest of us should

PS: "unsustainable" = code word for bank profit! Obviously the banks are so poor they cannot possibly make billions for the shareholders dealing with cash or keeping branches open!

 

[Pat T]

As our world continues to become digitalised by the day, with many of us able to do almost anything with the click of a button, the use of physical currency has reportedly declined.

Still, many prefer to carry around cash as not everyone is comfortable with online transactions or has access to the internet all the time.

However, it seems that keeping cash comes with its own cost.

This is according to Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA), who claimed that every customer is losing $40 per year by keeping cash.

The executive joined the CEOs of Australia and New Zealand Banking Group Limited (ANZ), National Australia Bank (NAB), and Westpac in a Senate inquiry into regional bank closures at Parliament House in Canberra last Wednesday, September 20.

View attachment 30554

Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA) claimed that every customer is losing $40 per year by handling cash. Credit: Commonwealth Bank of Australia

The inquiry focused on the debate about the country’s move to a cashless society.

Mr Comyn argued that the costs of running 728 CommBank branches, which amount to $1 billion a year, to sell loans and manage cash transactions were becoming unsustainable since the demand had reduced.

‘Transporting and making cash available around our vast country involves the considerable expense of logistics and security,’ Mr Comyn said in the hearing.

‘We estimate that continuing to support distribution and availability of cash costs CBA approximately $400 million each year—which works out to roughly $40 for every one of our 10 million customers. Many of our customers don’t use cash though—and these customers cross-subsidise those that do,’ he explained.

It was reported that the CBA network had seen a decline in cash transactions in recent years.

‘Five years ago, 43 per cent of all point of sale transactions were cash,’ he shared.

‘Today, the figure is around 15 per cent. And yet every week customers transact more than $18 billion through the CommBank app—an increase of 64 per cent in just two years,’ he added.

However, Mr Comyn also stressed that CommBank has no plans to remove cash altogether, unlike Macquarie Bank.

‘We certainly have no plans to remove cash distribution or the provision of cash in Australia,’ he assured. ‘I don‘t think that’s feasible, and I don’t think that would be desirable, certainly in the foreseeable future.’

It was recently revealed that Macquarie Bank plans to phase out cash, cheque and phone payment services starting in January 2024. You can learn more about that story here.

The other CEOs also gave evidence about the dominance of digital transactions.

Westpac CEO Peter King stated that 96 per cent of customers’ transactions are now digital, while NAB boss Ross McEwan claimed theirs was 93 per cent.

Meanwhile, ANZ CEO claimed that more than 90 per cent of their customers aged over 65 ‘use at least one self-service option to do their banking, such as our ANZ app, internet banking or ATMs’.

‘While most customers prefer digital channels for many of their transactions, branches continue to be important,’ Mr Elliot emphasised.

Due to the Senate inquiry, CBA has paused all their regional bank closures until 2026.

‘As time goes on, it becomes unsustainable to invest substantial resources keeping expensive services that fewer and fewer customers use,’ Mr Comyn shared.

He also urged rural and regional customers to bank with CBA, saying: ‘Our decision to pause rural bank closures is predicated on customers and communities valuing our decision to stay.’

‘So for other local councils, small businesses, farmers, homeowners and regional areas, if you value CBA supporting your communities, we will be delighted to serve you.’

The Financial Sector Union estimated that more than 1,600 bank branches were closed nationwide in the five years to June 2022, with a disproportionate number located in regional and rural areas.

Without government intervention, it seems like the trend will continue—especially when the customer demand switches to online banking.

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

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

Key Takeaways

• Commonwealth Bank of Australia’s (CBA) Chief Executive, Matt Comyn, told a Senate inquiry that keeping cash costs every customer around $40 annually.
• He argued the cost of running branches and managing cash transactions is becoming increasingly unsustainable as customer demand diminishes.
• Cash transactions across the CommBank network have decreased in recent years from 43 per cent to 15 per cent.
• CommBank confirmed it has no plans to remove cash distribution or provision in Australia despite increased digital transactions.
• According to estimates from the Financial Sector Union, over 1,600 bank branches were closed across Australia in the five years leading to June 2022, with a disproportionate number located in regional and rural Australia.

Members, what’s your take on this story? Share your insights in the comments below!

No wonder the CBA is trying to put their customers on the right track and stop using cash. Their Chief Ex just explained it. The CBA could be pocketing an extra $400 million, stuff their customers.

 

[Loubeauxarts]

Does anyone else see the similarity between the supermarket debate and this current banking fiasco? We followed like sheep and sold out in the 70's & 80s, trading loyalty and supporting small family businesses for the convenience of being able to buy everything in one location. Now, with the competition gone, the supermarkets control pricing and supply of most of life's essentials and there is absolutely nothing we can do about it. Fast forward to the 2020's and we are now accepting the big 4 banks rhetoric that it is the reality of the future, that we accept what they tell us and do as we are told or we'll be left behind. As has been noted by others, and it is happening more and more frequently, what happens when power supplies and computer systems go down?
Think about it.....

 

[Pat T]

Does anyone else see the similarity between the supermarket debate and this current banking fiasco? We followed like sheep and sold out in the 70's & 80s, trading loyalty and supporting small family businesses for the convenience of being able to buy everything in one location. Now, with the competition gone, the supermarkets control pricing and supply of most of life's essentials and there is absolutely nothing we can do about it. Fast forward to the 2020's and we are now accepting the big 4 banks rhetoric that it is the reality of the future, that we accept what they tell us and do as we are told or we'll be left behind. As has been noted by others, and it is happening more and more frequently, what happens when power supplies and computer systems go down?
Think about it.....

Remember back in the ‘80s when i was in KMart and the power went out. Had to close the shop because the staff couldn’t count out the change. Probably told us then how much better cards would be. Doesn’t appear that we’ve progressed much.

 

[Trudi]

You're entitled to your opinion. And no I don't take money out as soon as it hits the bank, I take out my shopping money, as anyone with any nous knows you don't spend as much when you can see your cash disappearing rather than tapping your card willynilly.
I'm not saying I don't use Internet banking, I do, but I am very careful with my money and if you don't think that every shop, business, Bank etc will take advantage and start charging for card use then you are the one with your head up your backside.

I pay no charges on my bank accounts or EFTPOS transactions. The only times I am charged for using a credit card is if I book a flight

 

[Lizzylou]

How many times have you heard about little old ladies having had their handbags ripped off them to get hold of cash? Or how many homes have been broken into with robbers looking for cash among other things?

Just before Christmas a couple of years ago, I found 2 x $100 notes next to the mailbox outside the post office. I picked them up and put them into my handbag before going into the post office and telling them that I found cash but naturally did not disclose the amount. I gave them my phone number in case someone approached PO staff about having lost money.

I was barely home when I got a phone call from an older woman who told me that she lost $200 at the post office, so I gave her my address and her grandson drove her to my place where I handed her the money. The money was meant for Christmas presents for her grandchildren.

Well done you, I am sure the lady was very grateful to you for being honest, I know little old ladies have had handbags taken and people have had their homes broken into, that still happens today but when a little old lady can't pay her bills cos she doesn't deal with cards has no idea I am sure you will be pleased enough to hand out your phone number and help them. Really there are plenty of people not all little old ladies and gentleman that prefer cash.

 

[Penny4]

Recently, I'm seeing more independant smaller shops with signage stating they don't accept cash.
It's all about saving money - not paying staff to count the cash at the end of the day.
Plus, the banks charge businesses to take cash.
I was at Coles today, and asked the lady scanning my items if they take cash. They do!

 

[magpie1]

oh the irony.......ANZ CEO Mr Elliot claims "branches continue to be important"....well please explain then why does ANZ continue to close their local branches in order to save money for themselves yet at the same time at their customers expense. The days of your Bank of choice giving first hand customer service inside their premises is long gone.....forget about being able to sit and talk face to face with your Bank personnel about your banking enquiries or needs, now it's all about 'PRESS 1 for this , or PRESS 2 for that' etc etc. Company profits and shareholders dividends are far more important than their poor old customers.

 

[mylittletibbies]

I pay no charges on my bank accounts or EFTPOS transactions. The only times I am charged for using a credit card is if I book a flight

We were not talking about today, although there are places that do currently charge for using your card.
We were talking about the future, if we no longer have cash, then stores, businesses etc. do not have to worry about you taking your business elsewhere, as people do.
The banks charge a fee to any trader accepting card payments, currently the majority of stores do not pass this charge on, but you can bet your bottom dollar they won't have any such qualms once we don't have the cash option.
And you can bet your next dollar that the greedy banks will jump on the gravy train and up the transaction fee.

 

[mylittletibbies]

Recently, I'm seeing more independant smaller shops with signage stating they don't accept cash.
It's all about saving money - not paying staff to count the cash at the end of the day.
Plus, the banks charge businesses to take cash.
I was at Coles today, and asked the lady scanning my items if they take cash. They do!

The Banks charge businesses for accepting card payments, it's called a transaction fee. Currently most shops do not pass this fee on, but they can if they wish but it cannot be higher than the bank charges them.

 

[MannyD]

As our world continues to become digitalised by the day, with many of us able to do almost anything with the click of a button, the use of physical currency has reportedly declined.

Still, many prefer to carry around cash as not everyone is comfortable with online transactions or has access to the internet all the time.

However, it seems that keeping cash comes with its own cost.

This is according to Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA), who claimed that every customer is losing $40 per year by keeping cash.

The executive joined the CEOs of Australia and New Zealand Banking Group Limited (ANZ), National Australia Bank (NAB), and Westpac in a Senate inquiry into regional bank closures at Parliament House in Canberra last Wednesday, September 20.

View attachment 30554

Chief Executive Matt Comyn of Commonwealth Bank of Australia (CBA) claimed that every customer is losing $40 per year by handling cash. Credit: Commonwealth Bank of Australia

The inquiry focused on the debate about the country’s move to a cashless society.

Mr Comyn argued that the costs of running 728 CommBank branches, which amount to $1 billion a year, to sell loans and manage cash transactions were becoming unsustainable since the demand had reduced.

‘Transporting and making cash available around our vast country involves the considerable expense of logistics and security,’ Mr Comyn said in the hearing.

‘We estimate that continuing to support distribution and availability of cash costs CBA approximately $400 million each year—which works out to roughly $40 for every one of our 10 million customers. Many of our customers don’t use cash though—and these customers cross-subsidise those that do,’ he explained.

It was reported that the CBA network had seen a decline in cash transactions in recent years.

‘Five years ago, 43 per cent of all point of sale transactions were cash,’ he shared.

‘Today, the figure is around 15 per cent. And yet every week customers transact more than $18 billion through the CommBank app—an increase of 64 per cent in just two years,’ he added.

However, Mr Comyn also stressed that CommBank has no plans to remove cash altogether, unlike Macquarie Bank.

‘We certainly have no plans to remove cash distribution or the provision of cash in Australia,’ he assured. ‘I don‘t think that’s feasible, and I don’t think that would be desirable, certainly in the foreseeable future.’

It was recently revealed that Macquarie Bank plans to phase out cash, cheque and phone payment services starting in January 2024. You can learn more about that story here.

The other CEOs also gave evidence about the dominance of digital transactions.

Westpac CEO Peter King stated that 96 per cent of customers’ transactions are now digital, while NAB boss Ross McEwan claimed theirs was 93 per cent.

Meanwhile, ANZ CEO claimed that more than 90 per cent of their customers aged over 65 ‘use at least one self-service option to do their banking, such as our ANZ app, internet banking or ATMs’.

‘While most customers prefer digital channels for many of their transactions, branches continue to be important,’ Mr Elliot emphasised.

Due to the Senate inquiry, CBA has paused all their regional bank closures until 2026.

‘As time goes on, it becomes unsustainable to invest substantial resources keeping expensive services that fewer and fewer customers use,’ Mr Comyn shared.

He also urged rural and regional customers to bank with CBA, saying: ‘Our decision to pause rural bank closures is predicated on customers and communities valuing our decision to stay.’

‘So for other local councils, small businesses, farmers, homeowners and regional areas, if you value CBA supporting your communities, we will be delighted to serve you.’

The Financial Sector Union estimated that more than 1,600 bank branches were closed nationwide in the five years to June 2022, with a disproportionate number located in regional and rural areas.

Without government intervention, it seems like the trend will continue—especially when the customer demand switches to online banking.

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

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

Key Takeaways

• Commonwealth Bank of Australia’s (CBA) Chief Executive, Matt Comyn, told a Senate inquiry that keeping cash costs every customer around $40 annually.
• He argued the cost of running branches and managing cash transactions is becoming increasingly unsustainable as customer demand diminishes.
• Cash transactions across the CommBank network have decreased in recent years from 43 per cent to 15 per cent.
• CommBank confirmed it has no plans to remove cash distribution or provision in Australia despite increased digital transactions.
• According to estimates from the Financial Sector Union, over 1,600 bank branches were closed across Australia in the five years leading to June 2022, with a disproportionate number located in regional and rural Australia.

Members, what’s your take on this story? Share your insights in the comments below!

Was at a Coles Express today and while getting a coffee an announcement was made to customers filling their cars with fuel that all transactions must be paid in cash.. as the internet was down !!

 

[Mogambo_shee']

last 5 years- and there were 3 years of no business taking cash- forced to use cards/phones or digital to pay for everything. Not fair statistics. And with constant closure of banks and ATMS they have taken that option away. I had 4 branches of my bank within 20 minutes in the last 11 years where I lam now living and several ATMs and now there is one branch and the ATM outside that branch. It prevents people using cash as they can't get to it.

Yes, the sad part is the government is in it that's why they don't want to do anything. The Pandemic was a good trial for control and it worked - they minimized the use of cash and used it as statistics, awwwww. The solution is on us if we cannot get services from them, why put our money with them???? It's our money, we should be in control of it, not the government or the bank.

 

[mylittletibbies]

I pay no charges on my bank accounts or EFTPOS transactions. The only times I am charged for using a credit card is if I book a flight

Then you obviously don't go to places that charge, bur nonetheless they are allowed to charge if they wish, the only thing stopping them is that people take their business elsewhere if they think they are going to be charged
The banks charge the merchant for accepting card payment. I know because I was charged this fee when ,I had my own business.
Of course businesses will pass this fee on when there is no cash and customers have no choice to go elsewhere.