New analysis from S&P Global Ratings, reported
by BankingDay.com finds Australian
banks have “ample” financial capability to pay for bank
branches.
S&P also says banks will
not be able to ‘simply walk away from
cash.’
“We believe major bank ratings have
ample headroom in their credit ratings to absorb the costs
of unprofitable branches,” S&P observed.
S&P cited CBA
data, showing the group reported cash services cost $410
million last financial year, brought in $60 million in
fees, for a net loss of $350 million.
” … we
believe political pressure prevents major banks from simply
walking away from cash services,” S&P said.
Banks and
the ABA have complained loudly in recent years about the
cost of maintaining branches and cash distribution
services.
Commonwealth Bank (and the other three big
banks) GAVE
UP $503 million in ATM fee revenue in 2017 from
251,651,300 ATM cash withdrawals made by ‘foreign’
customers.
Australia’s big banks have now
agreed to a temporary moratorium on branch closures but
have already dismantled most of Australia’s bank and cash
networks
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Banks have dismantled half their cash
network
Banks
are dismantling national economic
infrastructure
Data from the Australian
Prudential Regulatory Authority and the Australian
Payments Network reveals Australia has lost 926 ATMs
in the last financial year (to June 2024). Banks removed
217 bank-owned ATMs in the 12 months to June 2024 and a
staggering 8,338 bank-owned ATMs in seven years.
The
number of bank-owned branches plus bank-owned ATMs (so the
total bank-owned cash access points) has halved in seven
years from 19,508 to 8,836 as at 30 June
2024.
Australia’s banks have dismantled half of their
cash distribution network.
Demand
for cash continues to rise
Over
the seven years, to June 2024, the total value of
Australian banknotes circulating rose 37 per cent
from $73.5 billion to $100.8 billion and these numbers
continue to rise into 2025.
Right now, in March 2025,
there is $103,259,000,000 ($103.3 billion) of Australian
notes in pockets, in tills and circulating in the
community.
Choice
reports that 80% of Australians use cash and 97% support a
cash mandate.
Because cash is not going away, bank
branch closures make life difficult for many
Australians, says Choice. You can read the bank’s policy
on branch closures here:
Cash
means control
One reason cash remains popular
is because cash makes budgeting easy.
Young people,
parents and people on strict budgets are increasingly
following influencers using cash to budget and
save.
These recent popular hashtags have billions of
views:
#CashStuffing
#100EnvelopeChallenge
Cash
Welcome is promoting the use of cash by young people with
our social media campaign “I
always carry cash” on TikTok, Facebook and
Instagram.
A growing number of mums and budgeting
experts are using cash to promote savings and taking control
of your money, like Vicky_Plans_Budgets
on YouTube.
Please share our petition
calling for mandated cash acceptance by supermarkets and
mandated cash access in all suburbs and towns:
https://www.change.org/BankingAndCashGuarantee
