Australia’s big four reveal plans after major bank scraps cash

Australian banks reveal their plans on going cashless after one announced its move to scrap cheque, cash and phone payment services.

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.

Macquarie Bank will be phasing out cash and cheque services by November 2024. Picture: Dan Peled / NCA NewsWire

“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.”

The big four banks have no current plans to wind down cash services. Picture: NCA NewsWire / Kelly Barnes

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.

Some Australia Post outlets provide cash and cheque banking services. Picture: NCA NewsWire / John Gass

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.