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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but 3 years of covid with nowhere accepting cash has impacted on this, and then still refusing after the pandemic still not accepting. It was not consumer choice. It was forced upon us. So this bank removing 2 12/k ATMs have added to it and more bank closures. They have taken advantage of the circumstances.
 
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
 
This is only the start, Banks are forcing this on us and with no regards as to how it will effect the public or small businesses. 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. That will disappear as they will be forced to carry all the 'electronic nick-nacks' with them now so say good-bye to that benefit. Also when all the electronics get 'hacked' or 'go down' we all stand around with our thumbs in our mouths, getting our personal details stolen and not being able to buy anything. Just think, electricity shuts down, you cannot buy food, petrol, medicines, TOILET PAPER, nappies etc..... we will be turning back the clock to 1000BC, push back, I have, been to speak to my local members, both sides, YOU SHOULD ALSO.
 
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.
 
One of the Banking RC conclusions was the lack of actual outcomes for customers rather than just the legal issues, seems nothing has changed there, and while their focus seems to be on impersonal online banking transactions, they should imo accept all the risks that go with that, but they don't. It seems to me ASIC's statement for the future "It doesn't matter what the new emerging issue is. We need to make sure that consumers are at the heart of how the financial system and its institutions work." is not ringing true.
 
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
Oh, what rubbish. The ATMs are being removed because of the lack of use, NOT because they want to lower the access to 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.
 
"Pardon me, Ma'am... can you direct me to the Cashless Bank?"
"Easy! It's one block south and three blocks west from here, between the Breadless Bakery and the Fruitless Fruitshop. You can't miss it!"
 
This is only the start, Banks are forcing this on us and with no regards as to how it will effect the public or small businesses. 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. That will disappear as they will be forced to carry all the 'electronic nick-nacks' with them now so say good-bye to that benefit. Also when all the electronics get 'hacked' or 'go down' we all stand around with our thumbs in our mouths, getting our personal details stolen and not being able to buy anything. Just think, electricity shuts down, you cannot buy food, petrol, medicines, TOILET PAPER, nappies etc..... we will be turning back the clock to 1000BC, push back, I have, been to speak to my local members, both sides, YOU SHOULD ALSO.
"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. 😁
 
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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!!
 
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
 
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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!!
ABSOLUTELY
 
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