Is the shift towards cashless banking leaving older Australians behind? Advocacy group slams financial institutions for ageism
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In our rapidly digitising world, many conveniences have arisen that make day-to-day life easier for most of the population. One such change is the shift towards cashless banking, a trend that doesn't appear to be slowing down anytime soon.
Unfortunately, while this trend provides benefits for some, it also raises concerns for many people who are members of vulnerable groups, such as seniors and those with no access to the internet.
According to recent reports, closing cash services at banks may cut off access to essential banking services for many older Australians.
Patricia Sparrow, COTA Australia's Chief Executive Officer, recently expressed her concern over the trend of in-person banking services becoming less accessible.
She said, ‘It’s important that everyone can access banking and other essential services no matter their circumstances or location.’
‘There’s been a trend towards making in-person banking less accessible for many years, and the recent move by ANZ is just the latest example of that.’
Sparrow acknowledged that technological advancements have led to a shift towards digitisation, which is not a problem for many older Australians.
However, she noted that this shift should not come at the expense of those in the community who still heavily rely on in-person services.
She continued: ‘There are many vulnerable older people who don’t have bank cards and prefer, for a number of reasons, to get their money out over the counter with the assistance of staff members.’
‘During COVID-19, it was revealed that there were tens of thousands of accounts without active debit cards attached to them, many of which belonged to older Australians.’
Sparrow emphasised that it is not just a matter of convenience but also financial inclusion and accessibility for everyone.
Bank branch closures and changes to banking at branches have made access increasingly difficult for many, particularly those in regional areas.
Ms Sparrow remarked: ‘It’s important to note that many older Australians are very happy to use new banking technology, and of course, we need to find ways to include everyone in technological advancements, but we can’t ignore the fact that physical banking is still important to many people.’
‘The government and banking sector need to work together to come up with solutions that work for everyone. Forcing people to deal with a lack of access to basic services is not the answer.’
In a previous report, we highlighted the closure of local Westpac banks, with some members of the SDC expressing their concerns.
One member shared: ‘We are losing our local Westpac in May. It was only small anyway, max two people and only open 10 am to 2 pm. The only thing we will be left with is the post office.’
Several SDC members speculated that the closures were due to financial institutions cutting costs, which would explain the move towards digital banking.
One member expressed frustration, saying: ‘Just closed a bank account because it has gone digital. Going digital is just an excuse for sacking staff to make more money.’
‘Going “paper-free” means that you and I and thousands of others have to spend time and money sitting at a keyboard when at one time we could walk to the nearby shops/bank and have a bit of a chat with counter staff/the owner and maybe even catch up with some old friends.’
Others called for the government to take action and address the issue.
One comment read: ‘Why is the federal government not stopping these bank closures? Surely there is a happy median in this. If you leave it to the bankers, they'll choose profit over service every time, especially if they are foreign-owned banks.’
Members, it can be difficult to stay up to date with bank changes, particularly when they come with short notice.
If you're worried that your branch might be closing or discontinuing cash services, then make sure to check regular updates and call in or email the customer service team of your financial institution to get the latest information.
We want to hear from you. Has your local bank closed? What concerns do you have about the move to digital banking? Share your thoughts and experiences in the comments below!
Unfortunately, while this trend provides benefits for some, it also raises concerns for many people who are members of vulnerable groups, such as seniors and those with no access to the internet.
According to recent reports, closing cash services at banks may cut off access to essential banking services for many older Australians.
Patricia Sparrow, COTA Australia's Chief Executive Officer, recently expressed her concern over the trend of in-person banking services becoming less accessible.
Advocacy groups are worried that the closure of banks is excluding vulnerable groups, particularly seniors, who have limited options for accessing banking services. Credit: Shutterstock/Net Vector.
She said, ‘It’s important that everyone can access banking and other essential services no matter their circumstances or location.’
‘There’s been a trend towards making in-person banking less accessible for many years, and the recent move by ANZ is just the latest example of that.’
Sparrow acknowledged that technological advancements have led to a shift towards digitisation, which is not a problem for many older Australians.
However, she noted that this shift should not come at the expense of those in the community who still heavily rely on in-person services.
She continued: ‘There are many vulnerable older people who don’t have bank cards and prefer, for a number of reasons, to get their money out over the counter with the assistance of staff members.’
‘During COVID-19, it was revealed that there were tens of thousands of accounts without active debit cards attached to them, many of which belonged to older Australians.’
Sparrow emphasised that it is not just a matter of convenience but also financial inclusion and accessibility for everyone.
Bank branch closures and changes to banking at branches have made access increasingly difficult for many, particularly those in regional areas.
Ms Sparrow remarked: ‘It’s important to note that many older Australians are very happy to use new banking technology, and of course, we need to find ways to include everyone in technological advancements, but we can’t ignore the fact that physical banking is still important to many people.’
‘The government and banking sector need to work together to come up with solutions that work for everyone. Forcing people to deal with a lack of access to basic services is not the answer.’
In a previous report, we highlighted the closure of local Westpac banks, with some members of the SDC expressing their concerns.
One member shared: ‘We are losing our local Westpac in May. It was only small anyway, max two people and only open 10 am to 2 pm. The only thing we will be left with is the post office.’
Several SDC members speculated that the closures were due to financial institutions cutting costs, which would explain the move towards digital banking.
One member expressed frustration, saying: ‘Just closed a bank account because it has gone digital. Going digital is just an excuse for sacking staff to make more money.’
‘Going “paper-free” means that you and I and thousands of others have to spend time and money sitting at a keyboard when at one time we could walk to the nearby shops/bank and have a bit of a chat with counter staff/the owner and maybe even catch up with some old friends.’
Others called for the government to take action and address the issue.
One comment read: ‘Why is the federal government not stopping these bank closures? Surely there is a happy median in this. If you leave it to the bankers, they'll choose profit over service every time, especially if they are foreign-owned banks.’
Members, it can be difficult to stay up to date with bank changes, particularly when they come with short notice.
If you're worried that your branch might be closing or discontinuing cash services, then make sure to check regular updates and call in or email the customer service team of your financial institution to get the latest information.
We want to hear from you. Has your local bank closed? What concerns do you have about the move to digital banking? Share your thoughts and experiences in the comments below!
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