ANZ, one of the “Big Four” banks in Australia, has recently announced that it will no longer facilitate cash withdrawals and deposits in some of its branches. This move has sparked concerns that it could be the start of a campaign to eliminate cash from Australia’s financial system.
The decision has been met with criticism from some quarters, who are worried that this could disproportionately affect older people who are less comfortable with digital transactions. Furthermore, this move could also make fiat users more vulnerable to technical issues.
However, ANZ has assured its customers that the affected branches are all metropolitan ones, which already have nearby ATMs and deposit machines. The bank also claims that the move was partially prompted by a significant 50% decrease in in-branch transactions over the last four years.
This move by ANZ is indicative of Australia’s gradual transition to a cashless society. According to reports, the percentage of retail payments made with cash in the country has fallen from 59% in 2007 to just 27% in 2019[1]. This trend towards cashlessness is also seen in other developed countries, such as Sweden and Denmark, where cash usage has declined significantly over the years.
The advantages of going cashless are undeniable. It can increase efficiency, reduce the risk of theft, and enable better tracking of transactions. Moreover, it can promote financial inclusion by providing easier access to banking services for people who are unbanked or underbanked.
However, critics argue that a cashless society could create significant challenges for those who rely heavily on cash. This includes people who do not have access to digital payment systems or those who do not have a bank account. Furthermore, it could make people more vulnerable to cyber attacks and technical glitches, which could lead to financial losses.
In conclusion, ANZ’s decision to stop cash transactions in some of its branches is not surprising given the increasing trend towards a cashless society in Australia. While there are clear benefits to this shift, it is essential to consider the potential impact on those who rely heavily on cash. It is crucial to ensure that measures are put in place to ensure that these people are not left behind and that financial inclusion remains a top priority.
As Australia moves towards a cashless society, there are several initiatives aimed at promoting digital payments and financial inclusion. The government, for instance, has launched a program to improve access to affordable banking services in rural and remote areas of the country.
Moreover, there are ongoing efforts to make digital payments more accessible and user-friendly for everyone, including older people and those with disabilities. For instance, some banks have developed apps and other tools that cater to people who are not comfortable with technology.
However, there are still challenges to be addressed in this transition to a cashless society. For example, there is a need to ensure that digital payment systems are secure and reliable, and that they do not discriminate against certain groups of people.
Moreover, it is essential to educate people on the benefits of going cashless and how to use digital payment systems safely and efficiently. This could involve providing training and support to people who are not comfortable with technology, as well as promoting financial literacy and responsible spending.
Overall, the move towards a cashless society in Australia is a significant trend that is likely to continue in the coming years. While there are clear benefits to this shift, it is essential to address the potential challenges and ensure that everyone is included in this transition. By doing so, Australia can build a more efficient, secure, and inclusive financial system that benefits everyone.
