The Australian banking landscape is undergoing a significant transformation, and it's not all good news for consumers, especially those in regional areas.

A worrying trend has emerged among the country's major banks, including Commonwealth Bank, National Australia Bank (NAB), and Australia and New Zealand Banking Group (ANZ), which could have far-reaching implications for Australians.

The number of bank-owned ATMs has been cut by more than half since 2017, and bank branches have also seen a significant decline.

This trend is causing concern among politicians and consumers alike, who fear it could lead to Australia becoming a cashless society.

The number of bank-owned ATMs have significantly decreased since 2017. Image source: fanjianhua on Freepik.

According to data compiled by the Australian Prudential Regulation Authority, the number of bank-owned ATMs has plummeted from 13,814 in 2017 to just 5,693.

Over the same period, the number of bank branches has decreased from 5,694 to 3,588.

This decline is happening despite major banks like Commonwealth Bank reporting substantial profits.

Earlier this February, the bank announced a half-yearly profit of $5 billion, only slightly down from its previous six-month record result.

Liberal Senator Jonathon Duniam has voiced his concern over this trend, arguing that banks are failing regional Australians by not keeping their ATMs functional.

'Frankly it’s probably cost-cutting measures on the part of banks that I find very disappointing,' he said.

'I think these organisations that make significant profits should be required to maintain these facilities in regional communities.'

'I’ve got nothing against profits but delivering on these services to communities is critically important.'

'They’ve closed the branches. ATMs are a much cheaper alternative. Please keep them particularly in regional communities and big cities too.'

Senator Duniam also highlighted the dangers of an over-reliance on electronic transactions.

He recalled the recent mass outage of the Optus network in November, which rendered many EFTPOS machines useless.

'What do we do if we don’t have ATMs?' he asked.

'If people aren’t using cash, if shops won’t accept cash we are going to be a bit stuck.'

The senator also noted that many elderly people are uncomfortable with electronic transactions, further underscoring the need for maintaining cash access.

Banks have defended their decision to close branches and ATMs by pointing out that fewer customers are using these services.

By the end of 2022, cash only accounted for 13 per cent of Australian consumer payments, compared to 70 per cent in 2007.

Last December, Reserve Bank Governor Michele Bullock suggested that businesses should charge fees to Australians who use cash. While she admitted such a move was unlikely due to potential backlash, she argued that from an economist's point of view, it was justifiable.

'As economists you want people to face the prices of using particular services that reflect the cost of those services,' Ms Bullock said.

LNP Senator Gerard Rennick, who initiated and sits on a Senate committee conducting an inquiry into bank closures, responded by saying Ms Bullock was 'way out of touch' for suggesting the idea.

He was adamant that Australians should never have to pay extra to use cash.

He also accused Ms Bullock of losing sight of her area of responsibility.

'She should be representing the interests of the Australian people,' Senator Rennick said.

Key Takeaways

• ATMs in Australia have decreased substantially since 2017, with numbers cut by more than half.
• Senator Jonathon Duniam advocated for banks to maintain ATM services, particularly in regional areas, and criticised bank cost-cutting measures despite their significant profits.
• Concerns have been raised about the potential challenges and risks of a cashless society, especially for those uncomfortable with electronic transactions, such as many elderly people.
• There are differing opinions on whether businesses should charge for cash transactions, with Reserve Bank Governor Michele Bullock suggesting it could be justified, while Senator Gerard Rennick strongly opposes extra fees for using cash.

What are your thoughts on this trend? Have you been affected by the closure of ATMs or bank branches in your area? Share your thoughts and experiences in the comments below.

 

[chinkapook]

I think they should keep banks open and keep cash. What if there is a power outage,how are people supposed to do shopping. I am only 68 but don't agree with everything that is going on

 

[Margaret 9]

Cash is legal tender and any attempt to go cashless should be fought t with vigour. Not everybody wants big brother knowing where every cent you spend goes….what about the recent electricity outage, computers, mobile phones all out, as I said you need CASH…. also when having home maintenance done you can get handy discounts for CASH….

I agree with you. On a recent shopping trip, hours after a major power outage, I was told that my gift certificate for the store, as well as my debit card etc couldn't be used until the next day at least because of the recent power outage. The result was that I had to walk away without my required shopping as I had no cash and none of the ATM'S were operational either! Electronic transactions only work when there is electricity!

 

[Rob44]

So because I worked in a bank 45 years ago I stick up for banks? hahaha, what a ridiculous notion.

Where are those jobs? Unemployment at 4.1%, hundred's of thousands of jobs that cannot be filled, you do know that businesses change, jobs move from one sector to another sector, often new sectors. If the banks don't need the staff why employ them. Should them spend money for people to sit around doing nothing? Maybe that's the job you'd like, do nothing.
Credit unions - banks with a different name, you don't think they make profits, they lookout for themselves as number one? Delusional. Solicitors loans, hahahahahahaha, come on get in the real world, the only loans they supply are to very, very safe people. Where do you think they get their money from.......the Bank. And any funds they have would be very limited. Love to see the housing loan market rely on solicitors.

"Maybe that's the job you'd like, do nothing."

Self-righteous sarcasm is a pointless debating tool worthy of our Federal Parliament.

 

[Rob44]

No because they use...........cards and electronic banking. How do you think a business like a service station operated 40 years ago? Cash transactions, travel from the station to the bank carrying 30-40,000 cash every few days. Or a estate agency with numerous rentals, people paid them in cash, had to bring it to the bank, again thousands of dollars. This is not just about a person and their money on hand, business use to have massive amounts of cash to handle, the bank

It is interesting to consider the umpteen millions of dollars stolen easily and quickly via internet scams these days and compare that with the relatively few hold-ups, bank robberies and hijackings for cash in the pre-internet days. The physical theft of bulk cash limited the amount of cash that could be stolen and, if we take that to extremes, if we were to pay for everything using the 1790s ''cart wheel " copper pennies of those days the sheer weight of the pennies required to be stolen would be forbidding. Although it would be worthwhile perhaps to melt them down and sell the copper to a scrap merchant.

 

[Rob44]

"Last December, Reserve Bank Governor Michele Bullock suggested that businesses should charge fees to Australians who use cash. While she admitted such a move was unlikely due to potential backlash, she argued that from an economist's point of view, it was justifiable."

May God spare us from the crass stupidity of such "economists". Although perhaps as long as businesses pay my costs in travelling to the business to do business with them; travelling time at $120 an hour; petrol and oil; wear and tear on my vehicle; depreciation on my vehicle, clothes and shoes; a contribution towards insurance and registration costs; depreciation on my house; a contribution to my food etc all of which are essential if I am to give my business to a business and pay that business by cash? Then there is my fee for withdrawing cash from the bank/ATM etc.

"User-pays" bites both ways.
,

 

[Cazza52]

How about all the extra fees stores are charging when using cards I thought it was illegal now. But I still find them using it imagine how much we would be paying if we can't use cash. I'v even been charged when using my Eftpos card and they get the money straight away.

 

[Catherines]

Think back to the 60s and early 70s. As the song goes - “the times, they are a-changing”. Keep up or get left behind, miles behind, with no one to whinge to.

Technology, medicine, the way we shop, eat, do everything everyday - it is all changing and it’s time we stopped wanting our old lives back.

 

[MaccaMan]

Why are the people of Australia not having a choice ? The banks are forcing this on us so they can up their exorbitant profits even more ! It is not good enough, power and the internet is not reliable for people to access their own money.
What is the Gov saying about it ? Nothing I guess !

You have a choice. Vote with your feet and leave your bank!

 

[magpie1]

The banks remove an ATM when the need is not there for them anymore. Do you think ATM's run for free, they don't, they take a lot of money to run, if there are not enough people using a particular machine it's not viable so it's removed.

Of course there's always someone who would like to use a machine at a certain location, but you can't have a machine everywhere and the fact is, people like using cards. Electronic backing is an option for everyone, no one ever had to use it but people are, people are driving this change.

Greg350:...you are so right, people DO like using cards these days....so reinstate the ATM'S. Also electronic banking is an option for everyone, people are driving the change you say.....so reinstate the ATM'S. If the bloody banks want to deny their customers personal service by closing all of their branch offices, then the absolute least they can do is provide an ATM in the wall....that gives better service to their customers these days than the institutions themselves towards their clientele.

 

[MaccaMan]

Who reported this, 'This trend is causing concern among politicians and consumers alike, who fear it could lead to Australia becoming a cashless society.'
Politicians have been driving this for as long as the banks have!

 

[Luckyus]

This trend is causing concern among politicians and consumers alike, who fear it could lead to Australia becoming a cashless society. It's my understanding that these arseholes are the collective voice of their constituents who seem to be with sdme growing future concern that we will no longer be able to use cash in our every day transactions. Now I fully realise that the problem not only lies with the banks, but with people that don't seem to mind paying fees every time they tap and go now it not seem like at the time. But I'm reminded of a story I heard on the radio (Now I don't about the story's veracity) but it involved a bank teller in a large city bank, who rounded all transactions that involved farthings. By the time the bank woke up he had been given his gold watch on retiring from the only job he had known, sold up and disappeared off the face of the earth?. I mention this recollection purely in passing?.

 

[Penny4]

I use 2 different banks. When their ATMs' disappeared, I rang the banks. I was informed of the name of ATM's that wouldn't be charging me fees to use it, as they have reciprocal arrangements. Other brands of ATM's would charge me. It's worth a phone call to your bank to ask them. I agree with the banks that people aren't visiting their local branch as much anymore. I gather this has been due to covid lockdown, and now most people use online banking. However, a cashless society is of concern.

 

[rehandra]

Bankwest is our main account for our daily transactions, super etc. I always draw out cash one a fotrnight but there is no Bankwest ATM close by. However I also have an account with Police and Nurses and I can go to an ATMX which is close by and withdraw at no charge. What I now do is once a fortnight I transfer an amount from Bankwest to my P&N Account and that is how I get around the problem.

 

[tpw1961]

I am so sick of this constant push by big business to make us totally reliant on digital things. Have they not seen the results of this push everytime the power goes out or the internet goes down. It's up to us to push back. We need to increase the use of cash again. With the use of cash, we can stem the tide of closures of both branches and ATMs. The banks try to justify themselves by saying the majority of people have embraced digital services. They fail to remember that many did not embrace it but were forced on to this format by COVID-19 restrictions. Quite a few of those people they refer to are keen to return to doing their transactions again using only cash. Rural and regional customers are always at a disadvantage with businesses as businesses only care about their profits and rarely if ever about their customers. Maybe what we need to do is go back to bartering. Using products and services instead of cash. That would definitely send a clear message to businesses as to who the important people really are.

 

[MaccaMan]

What we NEED to do.
What we COULD do.
What we SHOULD do.
When are people ACTUALLY going to do?