In this era where digital wallets and contactless payments are becoming the norm, it’s easy to think that the days of cash are numbered. However, despite the rapid rise of digital banking and contactless payments, cash remains a crucial part of the economy.
While many financial institutions are scaling back cash services, others are taking a different approach, investing millions to keep ATMs running and branches stocked. In a reassuring move for those who still rely on physical currency, a major bank has made a bold statement: cash is not only here to stay, it’s here to thrive.
Matt Comyn, CEO of the Commonwealth Bank of Australia (CBA)has taken a definitive stance on the future of cash, ensuring customers that despite the digital shift, cash will continue to play a crucial role in the economy.
In a letter to customers, Comyn emphasised the bank’s commitment to providing cash services, recognising its significance to the community and the bank itself.
‘While your banking preferences may continue to change, we know cash is critical to our customers, the community and to CommBank and it’s here to stay,’ he said, adding, ‘We have extended our promise to keep all our regional CommBank branches open until at least 31 July 2027 to support communities and jobs in regional Australia.’
Moreover, the nation’s largest bank is investing heavily in its physical infrastructure, with plans to upgrade its extensive branch and ATM network with a $100 million investment slated for 2025. This network is responsible for distributing more than $4 billion in cash each month, a clear indication that cash is still very much in demand.
The bank’s stance is a response to a broader conversation about the role of cash in society. A consultation paper released by the treasury in December 2024 highlighted that approximately 1.5 million Australians use cash for more than 80 per cent of their in-person payments. The paper also pointed out that cash serves as a reliable backup during natural disasters and outages, when digital payment systems may fail.
Likewise, a whopping 94 per cent of businesses continue to accept cash, suggesting that the economy is not ready to abandon physical currency just yet. This reality is a stark contrast to the Commonwealth Bank’s earlier, now-reversed decision to introduce a $3 ‘assisted withdrawal fee’ for certain cash transactions, which was met with public backlash and labelled the ‘worst Christmas present ever’ by Assistant Treasurer Stephen Jones.
The Reserve Bank of Australia’s governor, Michele Bullock, has also weighed in, acknowledging that while the use of cash for everyday payments has declined, it is unlikely to disappear entirely.
‘At the moment, we’re trying to solve the short-term issue, to make sure the cash is available … that people can use it, that people can access it. But we’ve got to think that cash is going to be around probably for another 10 years, and we’ve got to find a way of moving to a new system that means that distribution of cash can be undertaken and viable,’ she said.
Meanwhile, Cash Welcome founder Jason Bryce has challenged the notion that Australians are moving away from cash, calling for evidence to support any claims to the contrary.
‘If Michele Bullock thinks cash will disappear in Australia within ten years, the RBA needs to provide some evidence to back up those big words. This a negative market signal and a clear sign that policy-makers have not yet come to the conclusion that cash needs to stay in circulation,’ he said.
In conclusion, the Commonwealth Bank’s backing of cash sends a powerful message that despite the rise of digital payments, there is still a significant portion of the population that relies on, and prefers, cash transactions.
We’d love to hear from you, our YourLifeChoices readers, about your thoughts on cash versus digital payments. Do you find yourself using cash less frequently, or do you still prefer it for certain transactions? Share your experiences and opinions in the comments below.
Also read: Government’s proposed cash mandate faces criticism from seniors groups—here’s why
“Meanwhile, Cash Welcome founder Jason Bryce has challenged the notion that Australians are moving away from cash, calling for evidence to support any claims to the contrary.”
Very ignorant comment. The percentage of transactions which are cashless is continually rising.
According to data from the Reserve Bank of Australia, the percentage of cashless transactions in Australia has significantly increased over time, with cash payments dropping from around 70% of all transactions in 2007 to just 13% in 2022, indicating a substantial shift towards cashless payments.
A lot of banks have shut their branches and taken their ATMs with them. In Canberra, there are no Bendigo nor ANZ banks in the city centre.
Its worse in the inner suburbs around the city centre.