Nearly 60 percent of ATM machines in Australia have been closed since 2017, leading to concerns about the transition to a cashless society and its impact on consumers. Recent statistics from the Australian Prudential Regulation Authority (APRA) show that 424 physical bank branches and 718 ATMs have been shut down. This represents a 10.6 percent reduction in bank branches and an 11.2 percent cut in ATMs in the 2023 financial year. Of the closures, 122 bank branches were in regional and remote areas, continuing a trend of declining branch numbers in these areas. The decline in physical bank branches and ATMs has raised concerns among campaigners about the accessibility of cash for consumers.
The APRA statistics also reveal a significant reduction in ATM and branch numbers over the years. In 2017, there were 5,694 bank branches, which decreased to 4,012 in June 2022 and then to 3,588 in 2023, representing a 37 percent reduction in six years. Similarly, ATMs dropped from 13,814 in June 2017 to 5,693 in June 2023, a 59 percent decrease. This decline in physical banking infrastructure raises concerns about the availability of cash when needed.
Campaigners like Jason Bryce from the Cash Welcome campaign argue that there is no incentive for big financial institutions to support the cash system. They believe that the push towards a cashless society is not consumer-led but driven by financial institutions’ desire to transition to digital payment systems that charge fees and collect consumer information. Bryce started the Cash Welcome campaign in response to the COVID-19 lockdown in 2020 when his local supermarket and bank refused to accept cash.
The closure of physical bank branches is not limited to Australia. In the United States, major banks like Bank of America, Wells Fargo, U.S. Bank, and Chase have closed numerous branches. A poll showed that 51 percent of consumers are concerned about physical branch closures. This global movement towards a cashless society has prompted concerns from politicians like Tracey Roberts, who warned about the potential impact on families and the disappearance of traditional cash-based activities like piggy banks, car boot sales, and the tooth fairy.
However, the federal Labor government in Australia aims to modernize the payment system and has released a strategic plan for achieving this. One aspect of the plan is to phase out cheques by 2030 and align payment systems with other reforms, including the implementation of a national digital ID. The government also aims to position Australia as a leader in global payments and is exploring the possibility of a central bank digital currency. Despite concerns about the impact on accessibility, cost, and privacy, the government is pushing forward with its efforts to modernize the payment system.