Australia: Indicator of increasing cashless times as Westpac branch closes?

It is no hidden fact that Australians love their cashless payment options. Big banks seem to be hopping on the bandwagon as Westpac is closing several traditional branches whilst ANZ opens its first cashless branch in Brisbane.

"Westpac has shut over 60 branches since 2015 and it is set to shut 2 more outlets in WA and VIC."

Our customers are embracing the digital changes we’re rolling out across our network as they continue to use cashless for everyday purchases,” said Catriona Noble, ANZ’s Australian Managing Director of Retail Distribution.

The RBA released data in March that suggested more than ¾ of face-to-face purchases over $10 are made via cashless transactions, with most Australians only using physical cash for smaller transactions. This trend favouring cashless transactions may be having an impact on traditional bank branches. Westpac has shut over 60 branches since 2015 and it is set to shut 2 more outlets in WA and VIC. Instead, “cashless” bank branches have been sprouting across the country. ANZ’s Brisbane outlet will be the 7th cashless branch opened in Australia since March 2016 which has no traditional tellers or over the counter cash withdrawals. Instead staff at the branch will provide customers with assistance on using ATMs and advice on financial products.

According to RFi Group data, 60% of people who pay for low value purchases such as coffee, snacks and newspapers, use cash instead of cashless transactions. This is consistent with the RBA data that says most Australians only utilize physical cash for smaller transactions.

 

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