Westpac, Commonwealth Bank close thousands of ATMS across Australia
Thousands of ATMs have been removed across Australia as the country continues to move away from using cash.
The number of bank branches and ATMs owned by banks has fallen by more than half over the past seven years, from 19,508 to 8,836 as of June 30, 2024, with Westpac and Commonwealth Bank among the key players in this reduction.
926 ATMs were removed in the last financial year and as many as 8,338 bank ATMs were closed in the past seven years, data from the Australian Prudential Regulatory Authority shows.
Australia has also lost 230 bank branches in major cities and 52 in regional areas. In addition, 63 Australia Post branches that offered banking and cash services have closed in the past year.
Jason Bryce, the founder of cash advocacy group Cash Welcome, argued that banks should maintain access to cash services despite increasing digital payment methods.
‘If a bank proposes to close a branch or ATM, they must publish a plan on how their customers can access local cash free of charge.’
“Banks must work together to ensure that there is easy local access to cash in every community.
“Major retailers selling food, groceries, medicines and fuel must accept cash and must ensure that no fewer than 40 percent of self-checkout terminals accept cash.”
Thousands of ATMs have been removed across Australia as the country continues to move away from using cash
Mr Bryce urges Australians to sign petition’An Australian cash and bank guarantee‘, which holds banks responsible for keeping cash in circulation rather than closing regional branches and ATMs.
RMIT Associate Professor in Finance Angel Zhong said banknotes have become much rarer in everyday transactions due to the rise of digital transactions.
“The shift to a cashless society in Australia is not only a possibility, but is already well underway,” she explained.
However, many older Australians still preferred to pay in physical cash, with almost one in five classified as a ‘cash heavy user’.
Dr. Zhong said Australia needs “better support for other age groups to embrace technology, better literacy about systems in technology and financial assistance” for those struggling with the transition to digital payments.
Earlier this week, the federal government said it was prepared to ban overdraft surcharges by 2026, pending an investigation by the Reserve Bank.
Another problem with digital transactions was that they often came with a surcharge, which may not be immediately apparent at the time of purchase.
Earlier this week, the federal government said it was prepared to ban overdraft surcharges by 2026, pending an investigation by the Reserve Bank.
“Surcharges were introduced as a way for businesses to pass on the costs of processing transactions and leasing payment terminals from banks,” explains Dr. Zhong.
‘However, this practice becomes problematic when surcharges exceed the actual cost of processing payments – an issue currently under investigation by the RBA.
‘It is also important that any reforms maintain an optimal balance in supporting businesses, who may have to bear additional banking costs to continue operating payment terminals.’