The big four banks have reassured customers they will maintain in-branch cash services, following Macquarie Bank’s unprecedented move to phase out cash and cheque services entirely.
Commonwealth Bank, ANZ, NAB and Westpac all confirmed on Friday that there are no current plans to go cashless.
This comes after Macquarie Bank announced it would phase out cash and cheque services across all its banking and wealth management products from January to November 2024.
“Instead, you’ll be able to make payments digitally — a safer, quicker, and more convenient way to bank,” the bank said in a statement.
The changes will also impact customers’ pension and super accounts, while the bank will stop accepting payments via telephone in May next year.
This comes three months after Treasurer Jim Chalmers announced Australia’s cheque system would be wound down “no later than 2030”.
“The Government will work with industry to minimise adverse impacts to consumers and businesses and ensure vulnerable Australians have the assistance they need to switch to other payment methods,” Mr Chalmers said in a statement.
“We understand the change in payment methods that is already underway is difficult for some people, including older Australians, and some small businesses.”
A Commonwealth Bank spokesperson said the bank had “no plans to phase out cash withdrawal and deposit services”, a sentiment echoed by the other big four.
Spokespersons for Westpac, NAB and ANZ said cash services would still be retained at various branches, though cheque systems would be closed by 2030 in line with the government’s Strategic Plan for Australia’s Payments System.
Smaller banks such as Suncorp, Bank of Queensland and Bendigo Bank also said they had no plans to go cashless.
According to the Australian Banking Association (ABA), just under 99 per cent of all customer interactions with banks now occur digitally, while more than 1600 Australian bank branches closed between 2017 and 2022.
Increasingly, remote communities are relying on banking services provided by Australia Post, which allows people to deposit cash and cheques, withdraw money and make balance enquiries for free.
The service is operated by Australia Post at more than 1800 rural and remote locations, however, not every outlet participates.
A Senate inquiry into regional and rural bank closures held earlier this year found there had been a 30 per cent drop in the number of bank branches in Australia over the past five years, a third of which were in regional and remote areas.
Advocacy groups for regional Australians have slammed the closures, arguing in-person banking provides essential services to small businesses and vulnerable community members.
FAQs
All of the Big Four banks - Commonwealth Bank, Westpac, ANZ and NAB - have ruled out going cashless.
Which major Aussie bank closes all branches as it scraps cash completely? ›
Bankwest closes EVERY branch as it scraps cash and becomes 'digital only' - here's what it means for you. Commonwealth Bank is closing all branches of its subsidiary Bankwest, which will become a digital only financial institution.
Why are banks stopping cash? ›
The shift can be attributed to a number of factors, including the surge in retailers accepting card payments and the pandemic encouraging contactless transactions. It's worth noting many card payments come with an additional charge, which is a reason some choose to live by the 'Cash is King' adage.
Is the Commonwealth going cashless? ›
While CBA has ruled out going cashless or phasing out ATMs completely, the major bank has reduced the number of access points to cash for customers in recent years. In the past five years, the bank has closed 354 branches and 2,297 ATMs across the country.
How close are we to cashless? ›
The US is moving toward cashless payments, with a substantial increase in the use of mobile wallet apps and contactless cards. A report from the Federal Reserve Bank of San Francisco found that payments made using cash accounted for just 18% of all US payments in 2022.
Who is getting rid of cash? ›
Londoners are moving away from cash faster than the rest of the country, according to new data. Figures from Link, the firm behind the majority of the UK's cash machine network, shows the capital's residents and workers are taking out £500m less every month from machines compared to pre-pandemic levels.
What are the 3 banks that shut down? ›
The collapses of Silicon Valley Bank and Signature Bank in March 2023—then the second- and third-largest bank failures in U.S. history—took consumers by surprise. Subsequently, three more banks failed in 2023: First Republic Bank in May, Heartland Tri-State Bank in July and Citizens Bank of Sac City in November.
What is the oldest bank still in operation? ›
The oldest bank still in existence is Banca Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.
Where do big banks keep their money? ›
Federal law sets requirements for the percentage of deposits a bank must keep on reserve, either at the local Federal Reserve Bank or in its own vault. Any money a bank has on hand after it meets its reserve requirement is its excess reserves. It's the excess reserves that create money.
Is cash going to be obsolete? ›
It might seem like cash is slowly becoming obsolete. But, Brett Scott says it's a false narrative that we're all pining for a cashless society.
The huge adoption of digital payments - such as contactless cards or using smartphones on EFTPOS terminals - has seen a dramatic reduction in the number of customers accessing ATMs to withdraw cash.
Are banks going away? ›
In 2023, America saw its highest amount of bank closings since the 2008 recession. The increase in mobile banking use, inflation and interest rates, and real-estate struggles all contributed to why 2023 experienced so many banks shutting their doors.
What happens to your cash in a cashless society? ›
A cashless society is one where cash—paper and coin currency—isn't used for financial transactions. Instead, all transactions are electronic, using debit or credit cards or payment services like PayPal, Zelle, Venmo, and Apple Pay.
Is China cashless? ›
“China is one of the top countries for using cashless payment systems, but penetration is not 100%,” says Sara Hsu, an associate professor at the University of Tennessee, specialising in supply chain management. “Elderly Chinese still often prefer to pay with cash and some struggle with using mobile payments.”
How to prepare for a cashless society? ›
Three steps for banks to prepare for a cashless world
- Invest in integrated payment solutions to help meet merchants' digital-first needs. ...
- Expand to adjacent areas to provide more “money management” capabilities. ...
- Explore the viability of new payment flows.
Physical currency isn't becoming obsolete any time soon, so it's important to weigh up your options before deciding to go fully cashless in 2024. Ensuring you can accept some cashless payments though, is essential to keeping with today's trends and customer expectations.
Which banks to avoid? ›
The worst banks in America of 2024
- Wells Fargo. BBB customer review rating: 1.06/5. ...
- Credit One. BBB customer review rating: 1.11/5. ...
- Bank of America. BBB customer review rating: 1.06/5. ...
- Chase Bank. BBB customer review rating: 1.1 / 5. ...
- US Bank. BBB customer review rating: 1.1 / 5.
In a cashless bank branch, teller or counter services such as cash withdrawals, deposits and cheque-cashing are not available. These services are instead provided via automatic teller machines.
What three banks just went under? ›
The collapses of Silicon Valley Bank and Signature Bank in March 2023—then the second- and third-largest bank failures in U.S. history—took consumers by surprise. Subsequently, three more banks failed in 2023: First Republic Bank in May, Heartland Tri-State Bank in July and Citizens Bank of Sac City in November.
