Yahoo Finance ANZ accused of restricting cash and cutting jobs as branches go 'cashless'
Banks are facing a dilemma as cash use declines. All but one are steering away despite controversy.
ANZ is slowly moving cash withdrawals away from an over-the-counter teller transaction and is instead asking customers to use smart ATMs, but is that costing Aussies their jobs?
The major Australian bank confirmed the process was being adopted in some inner-city branches after 2GB host Ben Fordham said the move was essentially “shutting down branches by stealth” in Sydney’s Manly, Balmain, Revesby and St Ives. Fordham’s guest, Nationals senator Matt Canavan, described the bank’s lack of transparency around the transition as “disgraceful”.
Yahoo Finance understands this process has been in place for up to five years in some Australian branches and that targeted messaging was in place prior to the change, including signs. ANZ told Yahoo Finance customers - the particularly vulnerable and elderly - had been sent letters to let them know and to advise "we have staff on hand to help customers needing assistance".
Are you struggling to access your cash? Contact belinda.grantgeary@yahooinc.com with your story
Smart ATMs can accept cash and cheque deposits, and doll out withdrawals without a physical card or fee. This means any customer looking to access their cash could still do so from a branch, and with assistance from staff if needed. There is a standard daily limit of $1,000 that can be increased to $2,000 by contacting the bank. Customers can also check their balance and change their PIN, among other services.
Australia’s biggest financial institutions are all saying customers are moving toward cashless transactions, or withdrawing using ATMs, at supermarkets, or in post offices.
ANZ said there had been a 50 per cent in-branch decline in transactions over the last four years and that the pivot was to better suit customer's changing needs.
"At some of our metropolitan branches our staff will focus on speaking with our customers about their banking needs, particularly about the big financial decisions in their lives, like borrowing for a new home or establishing accounts for a new business," the spokesperson said.
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NAB has detailed more branch closures and Commonwealth Bank opened a number of specialist branches last year that don’t support teller withdrawals over the counter. Macquarie Bank (MQG) went a step further, announcing it would phase out cash and cheque services from January, with customers unable to deposit or withdraw at branches from May.
Even Bankwest closed another three branches last month, moving toward an "almost solely digital" model.
The reason? Customers are banking that way, option for tap payments or online transactions over cash.
Westpac appears to be bucking the trend, offering more options for customers to access cash. They can now visit Westpac, St George, BankSA or Bank of Melbourne branches.
The Big Four Aussie banks have all been under the microscope after accusations that mass regional branch closures have been leaving customers unable to access or use their own money. Their bosses have had to front a senate inquiry into the consequences, largely arguing the cost of doing business with cash is far too much to justify.
Canavan said the focus had been on country and rural areas, but that this was “related” and could be part of the probe.
“We have been mindful this is happening in the cities and I think we need to take this up and get the real answers,” Canavan said. “The senate can demand these answers about how many branches are shutting and about how many are taking cash deposits.”
ANZ said diverting cash withdrawals to an ATM could allow tellers to focus on other parts of the business, like loan support. But the Finance Sector Union said 170 staff “now appear to be facing redundancy instead of being available to assist business customers with their banking needs”.
National president Wendy Streets said a restructure was going to impact 1,300 jobs and that not enough had been done to ensure Australians weren’t being “pushed into the unemployment line”.
“Staff are being told this is about being the best in the industry but it’s hard to understand how ANZ can seriously believe that story when this will lead to jobs disappearing, the remaining staff being forced to pick up the work and cuts to the numbers of business centres the bank operates,” Streets said.
ANZ, the fourth-largest lender in Australia, announced a $7.4 billion profit in 2023, and said on Monday its first-quarter group revenue was in line, pointing out lending growth across customer deposits and home loan profits.
"The institutional division's markets business had a good start to the year with revenues a little better than the first-half FY23 average of $575 million," the company said in a statement on Monday.
How many Australians actually use cash?
A 15-year analysis shows Australians are withdrawing cash less and less. From a peak of 77.9 million withdrawals in December 2008, the figure gradually declined to 29.7 million by June last year.
Further to this, Finder’s Consumer Sentiment Tracker found only 13 per cent of Australians used cash daily, with 31 per cent opting for cash transactions just once a week.
The trend appears to be more significant in younger generations. Daily cash use sits at 19 per cent for Baby Boomers but dwindles to 15 per cent, 12 per cent, and 5 per cent for Gen X, Y (Millennials), and Z, respectively.
The shift can be attributed to a number of factors, including the surge in retailers accepting card payments and the pandemic encouraging contactless transactions.
It’s worth noting many card payments come with an additional charge, which is a reason some choose to live by the ‘Cash is King’ adage.
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