Macquarie Bank to phase out cash, cheque and phone payments by November 2024

© Reuters.

Macquarie Bank, Australia's fifth largest bank, has announced plans to transition towards a digital-only banking system by November 2024. This unprecedented move will see the phasing out of cash, cheque, and phone payment services across all its banking and wealth management products. The bank's decision, revealed earlier this week, has sparked intense debate and criticism regarding the implications for financial surveillance and the potential exclusion of certain customer groups.

The bank's shift to digital-only payments is expected to impact customers' pension and super accounts. Additionally, Macquarie Bank will cease accepting payments via telephone in May 2024. In a statement, the bank highlighted the benefits of digital transactions, describing them as "a safer, quicker, and more convenient way to bank".

This announcement follows a statement made three months ago by Treasurer Jim Chalmers that Australia's cheque system would be phased out "no later than 2030". The government has pledged to work with industry stakeholders to mitigate adverse impacts on consumers and businesses during this transition.

In response to Macquarie Bank's move, Australia's big four banks - Commonwealth Bank, ANZ, NAB and Westpac - confirmed on Friday that they currently have no plans to go cashless. They have reassured customers that in-branch cash services will continue to be available. Similarly, smaller banks such as Suncorp, Bank of Queensland and Bendigo Bank also stated they had no intentions to eliminate cash services.

Despite this assurance from other banks, concerns remain about the potential impact of Macquarie Bank's decision on vulnerable Australians and those living in rural and remote communities. Critics argue that the shift towards a digital-only system could be exclusionary and that access to traditional banking services should be preserved for those who need it.

According to the Reserve Bank of Australia (RBA), the use of cash for in-person transactions has dropped significantly in recent years. However, the RBA also noted a strong growth in high denomination banknotes, indicating that many Australians are choosing to keep cash as a precautionary measure or store of wealth.

The trend towards digital banking has been accompanied by a reduction in the availability of ATMs and bank branches. A Senate inquiry held earlier this year revealed a 30% drop in the number of bank branches over the past five years, with a third of these closures occurring in regional and remote areas. Advocacy groups argue that in-person banking is essential for small businesses and vulnerable community members.

As traditional banking services become less accessible, remote communities are increasingly relying on banking services provided by Australia Post. These services, which include depositing cash and cheques, withdrawing money, and making balance enquiries, are available at more than 1800 rural and remote locations.

The move towards a cashless society is viewed by some as a cost-saving measure for banks. However, critics argue that the government should intervene to protect customers' access to cash. A parliamentary inquiry scheduled for next week will hear from concerned members of the public about bank branch closures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.