In this era of unprecedented technological advancement and convenience, the world is shifting gears, steering towards a cashless society.

If you've visited the local branch of the Commonwealth Bank recently, you might have experienced this shift firsthand.

Imagine going to a bank, reaching out to the teller to withdraw some cash, only to realise they aren't handing out those precious paper notes anymore. Sounds odd, right?

But in recent news, the Commonwealth Bank has taken another step on the path to a digital-only future.

Major banks are transitioning towards cashless branches, where customers can no longer make cash deposits or withdrawals over the counter, raising concerns and criticism regarding accessibility. Source: Shutterstock

Several branches of Commonwealth Bank, including the likes of Commonwealth Bank Place in Sydney, South Eveleigh, Barangaroo, Penrith, and the University of Sydney, no longer facilitate over-the-counter money withdrawals or deposits.

Termed as 'specialist centres,' these branches are now focused on servicing business customers and loan products.

So what do you do now if you're left stranded without cash at these establishments?

If you're without your card and need funds over $500—an amount exceeding the limit of the 'Cardless cash' cash feature of the CommBank app—your only solution would be to travel to a traditional branch, which allows teller transactions, according to reports

Now we understand it can be quite a bother for our mobility-impaired members or those residing in remote areas.

Naturally, some of us are poking holes at this seemingly outlandish concept of a cashless bank. But it’s important to keep in mind that Commonwealth Bank isn’t alone in this.

This new banking model is gradually turning into an industry-wide trend.

An unsuspecting ANZ customer experienced an unexpected inconvenience when she was unable to withdraw cash at her local branch to make a necessary payment.

The introduction of ‘specialist centres’ by Commonwealth Bank, which focus on business customers and loan products rather than over-the-counter transactions, reflects the evolving nature of banking services in response to changing customer behaviours and preferences. Image by Ono Kosuki from pexels

She had to resort to setting up a temporary card for ATM withdrawal which failed, ironically underlining that not all modern solutions are failsafe.

This customer shared in a video, saying, 'I thought “that's fine” I will just go to the teller. The teller proceeds to tell me they don't have cash in the bank anymore, that you can only get it out through the ATM, but she said, “Don't worry, I'll set you a card up so you can just tap it in place of your card.”'

In March, ANZ announced that certain branches would no longer handle cash transactions except for ATM services.

ANZ issued a statement confirming their decision to go cashless at the counter and clarified the specific branches impacted by this change.

A spokesperson stated, ‘At ANZ, we have seen in-branch transactions fall 50 per cent over the past five years, with just one per cent of transactions now done over the counter and 96 per cent conducted digitally.’

Online banking comes with significant security concerns as well. Scammers can pretend to be banks and catch unsuspecting customers off guard, convincing them to instantly transfer large sums of money.

A recent incident involved an Australian businessman who was tricked out of $130,000 in a sophisticated text message scam.

The fraudster sent him a message from the same number used by his bank, making the deception more convincing. You can read more about this story here.

According to a research study published in January, physical cash is expected to nearly disappear from circulation within the next decade.

The dominance of digital banking has brought about security concerns, as society becomes increasingly reliant on potentially vulnerable systems, with instances of online scams and data breaches underscoring the risks involved. Image from Shutterstock

Lance Blockley, an expert on market payments, estimates that by 2025, traditional cash will account for less than 4 per cent of total retail purchases in Australia.

In a submission to the ACCC in 2021, Mr Blockley, the Managing Director of consulting frm The Initiatives Group, mentioned that the usage of banknotes, not only in retail but across all areas, is projected to decrease to 10.2 per cent in 2025, down from 24.2 per cent in 2019.

However, Cyber security expert, Ben Britton, emphasised that online transactions have opened up new opportunities for criminals to target more people and steal substantial amounts of money.

Key Takeaways

• The Commonwealth Bank has introduced 'cashless' branches where customers cannot make cash deposits or withdrawals over the counter. Customers must now use on-site ATMs or cardless cash withdrawals via the CommBank app.
  
• Other major banks, such as ANZ, are also shifting towards cashless branches in favour of digital banking methods. However, this move has sparked criticism and concerns among customers.
  
• The dominance of digital banking has raised security concerns, with experts pointing out that society has become too reliant on potentially vulnerable systems.
• Independent payments market expert Lance Blockley estimated that by 2025, traditional cash would make up less than 4 per cent of total retail purchases across Australia, signifying the rise of digital transactions in the country.

What are your opinions on the shift towards cashless banking and the introduction of cashless branches? Is this transition beneficial or problematic?

 

[Leenie]

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