The shocking truth behind Commonwealth Bank's new 'cashless branches'

The Commonwealth Bank of Australia (CBA), the nation's largest home lender, is making waves—and raising more than a few eyebrows—with its new 'cashless' branches.

But what's the real reason behind this move?

Is it a sign of the times or a strategic move to cut costs and push customers towards digital banking? Let's delve into the details.



The CBA has been opening what it calls 'specialist centres' across the country.

These centres, referred to as 'services centres' in the bank's annual report, are different from traditional branches.

The most significant difference? Tellers at these centres are not allowed to handle cash transactions over the counter.


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CBA has been opening its specialist centres across the country. Credit Shutterstock


However, the bank is quick to refute the term 'cashless', arguing that these centres are not devoid of cash as they house ATMs for customers to withdraw and deposit money.

The bank's spokesperson said, ‘Specialist centres are designed to support personal and business customers with more complex banking needs.’

'Customers are able to withdraw and deposit cash at all of our specialist centres, and referring to them as cashless would be inaccurate.’

'While specialist centres don't have (sic) traditions telling counters, cash remains available for withdrawal and deposit at each location via on-site ATMs.'

A member of Daily Mail Australia visited a ‘specialist centre’ in Barangaroo in Sydney, but the teller told her she could not do a cash transaction.

The first of these specialist centres opened in 2020 at South Everleigh, Sydney, amidst the pandemic, which saw a significant shift from cash to tap-and-go payments.

Since then, more centres have sprung up in major cities like Sydney, Melbourne, and Brisbane, with a Bankwest outlet in Perth.



The bank's annual report for 2022-23 listed 741 branches and 'services centres', a grouping observers say masks the extent of traditional bank closures.

Over the past five years, the Commonwealth Bank has closed 354 traditional branches that handle cash transactions, a move that coincides with the decline in cash usage in Australia.

According to a Reserve Bank of Australia report, the proportion of in-person transactions done in cash fell to 16 per cent in 2022, down from 32 per cent in 2019, before the pandemic.

This decline in cash usage has also led to the removal of 2,297 ATMs between 2018 and 2023, a staggering 54 per cent decrease.


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CBA’s ATMs have also been removed since 2018. Credit: Shutterstock


The bank's CEO, Matt Comyn, has been candid about the cost of maintaining cash availability.

'Transporting and making cash available around our vast country involves considerable expense of logistics and security,' he said.

'We estimate that continuing to support distribution and availability of cash costs CBA approximately $ 400 million each year, which works out to be 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.’

'As time goes on, it becomes unsustainable to invest substantial resources, keeping expensive services that fewer and fewer customers use.'

Comyn also told the parliamentary committee, ‘An ATM costs around $30,000 per year to operate. In the six years since fees were removed, the number of major banks with ATMs in Australia has more than halved.’



Over the past five years, CBA closed 354 traditional branches that do cash transactions from 1,082 in June 2018.

Recently, CBA added the closure of three more branches across the country—Coogee, New South Wales, Coolangatta, Queensland, and Adelaide’s Rundle Mall in South Australia. These branches are set to close their doors permanently by March 1.

The Commonwealth Bank promised not to close any of its specialist centres outside the capital city until 2026.

Other big banks like National Australia Bank and ANZ are also trying out branches without cash services.
Key Takeaways
  • Commonwealth Bank is operating 'services centres' that do not have tellers dispensing cash over the counter, but they have ATMs, hence they are not termed 'cashless'.
  • The bank has 13 such centres across Sydney, Melbourne, Brisbane, and Perth, with none in regional areas, but commits to no rural closures before 2026.
  • These centres are designed to assist customers with complex banking needs and facilitate digital and technology conversations rather than handle cash transactions.
  • The shift towards 'services centres' aligns with a decline in cash use, which has prompted CBA to close traditional branches and reduce the number of ATMs due to decreased demand and high operational costs.
What are your thoughts on this shift towards cashless banking? Have you visited one of these 'specialist centres'? Share your experiences and opinions in the comments below.
 
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It's no point Commonwealth Bank explaining what's really happening when people on social media just want to jump on the bandwagon and make up various conspiracy theories about this as usual. 🙄

My bank can close their local branch if they want? I don't use cash and I went there once about 5 years ago.
People really need to catch up with the modern age or they'll just be left behind!!
You'd better pray that you don't have a 7-day+ power failure or major telecommunications outage if you don't have cash. Also, don't have a vehicle breakdown anywhere west of the Great Divide.
 
I am very savvy with online banking where necessary but prefer cash for my shopping so withdraw the necessary funds from my bank. I would not want to use a post office because I understand that they charge $4 per transaction in or out
Aust Post do not charge you:

"We don’t charge you fees to use Bank@Post. Please check your account terms and conditions or ask your financial institution if they will charge you for using Bank@Post."
 
You'd better pray that you don't have a 7-day+ power failure or major telecommunications outage if you don't have cash. Also, don't have a vehicle breakdown anywhere west of the Great Divide.
Adn how often is it that you have a 7 day outage? Come on, use some common sense, and if the power is out chances are the shops are closed anyway.
 
You'd better pray that you don't have a 7-day+ power failure or major telecommunications outage if you don't have cash. Also, don't have a vehicle breakdown anywhere west of the Great Divide.
"Also, don't have a vehicle breakdown anywhere west of the Great Divide."

Haha, don't they have electronic banking there? I've driven all over Australia, numerous times, never had to touch my cash I have as an emergency.
 
"Remember when you wanted a tradie to do a job around the house, you asked him for a 'cash-price' discount and he was more than happy to give you a better discount."

I'm sure he did as could hide the cash and you got a cheap job. Now you'll have to pay a proper price to get a job done. 😁
And that cheap job is costing everyone more in taxes elsewhere as the tradie is not paying their fair share of tax.
 
Would someone tell me that the demand for in-branch services are no longer used?

These photos are of the Dandenong Plaza branch of the CBA taken on Monday September 11 last year at about 10.30 am. Traditionally, a very quiet time. You should see it on a mid Friday afternoon. Triple the crowd!

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Especially for you @Greg350!
 
Would someone tell me that the demand for in-branch services are no longer used?

These photos are of the Dandenong Plaza branch of the CBA taken on Monday September 11 last year at about 10.30 am. Traditionally, a very quiet time. You should see it on a mid Friday afternoon. Triple the crowd!

View attachment 40696View attachment 40697

Especially for you @Greg350!
Dandenong Plaza - is that being closed down............NO, any sign if it being closed down.........NO.

A busy shopping centre branch is nothing like a suburban 5 staff operation where they see 30 customers in a day. And the vast majority of these people could do whatever they are doing electronically and very easily if they wanted. A large number of tax dodgers there, "cash money" only for them.
 
Would someone tell me that the demand for in-branch services are no longer used?

These photos are of the Dandenong Plaza branch of the CBA taken on Monday September 11 last year at about 10.30 am. Traditionally, a very quiet time. You should see it on a mid Friday afternoon. Triple the crowd!

View attachment 40696View attachment 40697

Especially for you @Greg350!
You said,
"Traditionally, a very quiet time."

So you agree it's usually quiet at that time, lol.
 
I haven't been inside a branch for years and most people I know haven't either, THAT'S why they are closing. The need is just not there anymore. Some people just don't like change, I get that, but it's not hard, ANYONE can use electronic banking if THEY want to give it a go. My wife can manage and she has no idea about technology, computers etc. Of course for the ones who just MUST access cash from an outlet the Post Office is still there and they can be used to access cash from a number of banks.
My mother is 100 and has a bank book. You cannot get money from the Post Office with one of these. Before you say change the account at 100 cannot see the point.
 
You said,
"Traditionally, a very quiet time."

So you agree it's usually quiet at that time, lol.
Quite the fool, aren't you. Monday morning. Would you prefer the CBA close their branch on the pretense of "it's not busy boys and girls....have an hour's break"? The queue is indicative of how busy it gets. If that is quiet, think what a busy time is like.

I shall leave you to your internet outages and hacking when making ANY type of online transaction. Enjoy your potentially evaporating funds!
 
  • Haha
Reactions: Greg350
Dandenong Plaza - is that being closed down............NO, any sign if it being closed down.........NO.

A busy shopping centre branch is nothing like a suburban 5 staff operation where they see 30 customers in a day. And the vast majority of these people could do whatever they are doing electronically and very easily if they wanted. A large number of tax dodgers there, "cash money" only for them.
Looks like we have a live one here folks! Is there some type of amnesty today?
 
Dandenong's Palm Court yesterday. My favourite meat and seafood outlet in the area. Why? Their prices are generally $3 to $10 per kilo (depending on the cut of meat) CHEAPER than CARD ONLY outlets in the same area. And the quality is the same, if not better. Guess what! There's an ATM at the rear of the shop!

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The major reason cash is used less is that banks make it almost impossible for the average person to access cash.

closing bank branches, making branches into cashless service centres, removing ATM machines and restricting the amount of access customers have to their money as cash... limiting the amount of cash a customer can access on a daily, weekly and/or monthly basis...

Slyly forcing the banks cashless agenda on the general public... jmho
You Forgot the ATM charges the banks are raking in
 
I am a former bank employee having served 25 years, with 10 of those years in management. As the CEO of CBA admits in the article, not having cash is a massive saving to Banks. Less Insurance, Less transport costs, less training of staff required, Less OHS needed around cash handling, less chance of robbery. etc, etc. The Pandemic was Manor From Heaven for The Banks, as it enabled them to accelerate their cashless society and closure of branches agenda. For years they have been slowly pushing society away from cash to plastic. Is it because, as The Banks claim, because, we the consumer want it? OF COURSE IT BLOODY WELL ISN'T! It is to improve The Banks bottom line and return to Shareholders. The Banks are no longer there to serve us, we are their toys to play with. They think the consumer is stupid, but WE ARE NOT! And where are all the savings going???? To Shareholders, Bank Executive Salaries and bonuses and The Banks Billions of dollars in Profits. At One time, Banks were good corporate citizens. No Longer, now they are just blood sucking leeches trying to sell their brand and products for more and more profit.
 
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Sick & tired of hearing about another BANK that is DISCRIMINATING against people who are not computer savvy. When will they learn that not everyone takes to new tech like a duck to water. So PIS#ED OFF I'm being forced into doing something I don't want or need to do all in the name of making a PROFIT.
I am not being forced into doing something I don't want to do. I carry cash with me all the time. I do use my cashcard for groceries as that's a big hit on my cash. But for everything else I pay with cash. I don't want the bank or the govt knowing what I spend my money on or telling me what I can buy. This is private & I intend to keep it private.
 
How are they robbing us by doing this?
Quite simply by charging to use a cashcard at local stores. Just last week I went to a local chemist, chose my vitamins which are needed for my eyes, went to the checkout & hey, presto! price was higher than shelf price. When I challenged this, I was told that the govt had said they had to charge for the use of any card (I know this is wrong as I had already been to my chosen chemist for regular meds & no extra charge for using the same card) & I just had to get used to it. NO I DON'T!! I have to travel to another city every few weeks for eye treatment & I will be checking chemists in that town to buy this same medication there in future. BTW I was only using my card as I had run short of cash & hadn't been to the supermarket to get more.
 
  • Wow
Reactions: Veggiepatch
Those that are lucky enough to holiday around Australia know how handy cash is in remote areas. We often neen one or two dollar coins, as do men’s shed, senior citizen centres, local garage sales etc. Now I cannot get these coins out of the ATM that they say are available for me to use. Next they will say we don’t use five dollar notes , so they will be gone. Again as you cannot get them out of the ATM! It’s not the public that stops using cash, it’s the lack of availability that is causing it. This is one way to stop financial transactions to go under the radar of the ATO. Just remember politicians, the brown paper bag will disappear as well
 
I am not being forced into doing something I don't want to do. I carry cash with me all the time. I do use my cashcard for groceries as that's a big hit on my cash. But for everything else I pay with cash. I don't want the bank or the govt knowing what I spend my money on or telling me what I can buy. This is private & I intend to keep it private.
What if you cannot get hold of the cash?
 
I haven't been inside a branch for years and most people I know haven't either, THAT'S why they are closing. The need is just not there anymore. Some people just don't like change, I get that, but it's not hard, ANYONE can use electronic banking if THEY want to give it a go. My wife can manage and she has no idea about technology, computers etc. Of course for the ones who just MUST access cash from an outlet the Post Office is still there and they can be used to access cash from a number of banks.
I can use technology but have no desire to have my bank a/c linked to a phone (which I usually forget to take with me when I go shopping anyway). The risk of being hacked these days is waaay to great for me. I am happy & confident using a cashcard (which is always in my purse) & have no desire to change to electronic banking.
 
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Reactions: freedy50

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