See how new bank fees could drain your account with every withdrawal!
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In a move that has left many customers reeling, the Commonwealth Bank of Australia (CBA) has announced a new fee that will hit customers' pockets whenever they withdraw their money from a branch, post office, or over the phone.
This startling development has sparked a conversation about the future of banking and the role of cash in an increasingly digital economy.
The bank's decision to close its 'Complete Access Account' and transition customers to 'Smart Access Accounts' will result in a $3 fee for each withdrawal starting 6 January.
This fee is a significant change for customers accustomed to accessing their money without additional charges.
The shift towards a cashless banking model has been on the horizon for some time, but CBA has remained tight-lipped about its plans for its branch network.
The introduction of 'Specialist Centres' that do not handle physical cash is a clear indication of the bank's direction.
These centres focus on complex banking needs such as business and home loan products, credit facilities, and merchant services.
At the same time, customers seeking to deposit or withdraw cash are directed to use online banking or ATMs.
The bank's move towards digital banking is part of a broader trend in the industry.
CBA's subsidiary Bankwest has already announced its transition to a digital-only bank, closing branches and removing physical cash services.
Similarly, other central banks like ANZ and NAB have opened branches without over-the-counter teller services, and Macquarie Bank has fully embraced the digital-only model.
While the banks argue that physical cash transactions represent a small fraction of their business, the implications of this shift are far-reaching.
Privacy concerns, the fees associated with tap-and-go payments, and the increased risk of hacks, cyber-attacks, and online scams have been raised.
Moreover, the reliance on digital infrastructure poses its own set of challenges, including potential power outages.
The impact of these changes is unevenly distributed.
Vulnerable groups such as people with disabilities, undocumented workers, refugees, victims of abuse, and those living in remote and regional areas may find themselves disproportionately affected by the loss of cash services.
Removing over 800 ATMs from CBA's network further exacerbates the issue, limiting access to cash for those who need it.
‘Five years ago, 43 per cent of all point-of-sale transactions were cash. Today, the figure is around 15 per cent,' explained CEO Matt Comyn last year.’ he said.
‘And yet, every week, customers transact more than $18 billion through the CommBank app, an increase of 64 per cent in just two years.’
‘Many of our customers don't use cash, and these customers cross-subsidise those that do,’
Reserve Bank governor Michele Bullock has emphasised the importance of maintaining access to cash for those who rely on it.
‘There is a minority, but a significant minority, of people who still rely heavily on cash and want to use cash,’ she explained.
‘The government is committed, and we are committed as well, to trying to maintain access to cash for people who want to use it,’
‘This is not just a problem in Australia, it's a problem around the world as cash use declines for transactions,’
‘You've got all these fixed costs of maintaining a cash distribution system, and with fewer cash transactions, that means the cost per transaction just keeps going up and up - it's getting uneconomical.’
Have you been affected by the new fee or the shift towards cashless banking? What are your concerns or experiences with digital banking? Share your stories in the comments below.
This startling development has sparked a conversation about the future of banking and the role of cash in an increasingly digital economy.
The bank's decision to close its 'Complete Access Account' and transition customers to 'Smart Access Accounts' will result in a $3 fee for each withdrawal starting 6 January.
This fee is a significant change for customers accustomed to accessing their money without additional charges.
A new fee for withdrawing cash from branches, post offices, or by phone will be introduced by Commonwealth Bank starting 6 January. Credit: Shutterstock
The shift towards a cashless banking model has been on the horizon for some time, but CBA has remained tight-lipped about its plans for its branch network.
The introduction of 'Specialist Centres' that do not handle physical cash is a clear indication of the bank's direction.
These centres focus on complex banking needs such as business and home loan products, credit facilities, and merchant services.
At the same time, customers seeking to deposit or withdraw cash are directed to use online banking or ATMs.
The bank's move towards digital banking is part of a broader trend in the industry.
CBA's subsidiary Bankwest has already announced its transition to a digital-only bank, closing branches and removing physical cash services.
Similarly, other central banks like ANZ and NAB have opened branches without over-the-counter teller services, and Macquarie Bank has fully embraced the digital-only model.
While the banks argue that physical cash transactions represent a small fraction of their business, the implications of this shift are far-reaching.
Privacy concerns, the fees associated with tap-and-go payments, and the increased risk of hacks, cyber-attacks, and online scams have been raised.
Moreover, the reliance on digital infrastructure poses its own set of challenges, including potential power outages.
The impact of these changes is unevenly distributed.
Vulnerable groups such as people with disabilities, undocumented workers, refugees, victims of abuse, and those living in remote and regional areas may find themselves disproportionately affected by the loss of cash services.
Removing over 800 ATMs from CBA's network further exacerbates the issue, limiting access to cash for those who need it.
‘Five years ago, 43 per cent of all point-of-sale transactions were cash. Today, the figure is around 15 per cent,' explained CEO Matt Comyn last year.’ he said.
‘And yet, every week, customers transact more than $18 billion through the CommBank app, an increase of 64 per cent in just two years.’
‘Many of our customers don't use cash, and these customers cross-subsidise those that do,’
Reserve Bank governor Michele Bullock has emphasised the importance of maintaining access to cash for those who rely on it.
‘There is a minority, but a significant minority, of people who still rely heavily on cash and want to use cash,’ she explained.
‘The government is committed, and we are committed as well, to trying to maintain access to cash for people who want to use it,’
‘This is not just a problem in Australia, it's a problem around the world as cash use declines for transactions,’
‘You've got all these fixed costs of maintaining a cash distribution system, and with fewer cash transactions, that means the cost per transaction just keeps going up and up - it's getting uneconomical.’
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