Commonwealth Bank has revealed how much it spends providing cash at its branches and ATMs amid growing concerns about the viability of cash services.
In its latest annual report, the bank described cash provision as a “challenging business model” and revealed it spent $410 million on cash services in the year ending June 2024.
Of that amount, some $350 million was used to keep cash available in branches and ATMs.
This is the first time the bank has shared detailed information on cash services costs, as it warned that costs had risen by 50 percent.
Earlier this year, the bank faced criticism after Daily Mail Australia reported it had removed over-the-counter cash withdrawals at several branches, which the bank rebranded as “specialist centres”.
The figures have been released as Australia rapidly evolves towards a cashless society, raising concerns about the costs of maintaining cash services in a world where digital payments are increasingly common.
Earlier this year, Australia’s largest cash-dispensing service, Armaguard, was on the brink of collapse until it received a $50 million bailout from major banks and big retailers in late June.
Even as fewer people use cash, the right to do so must be defended, says Reserve Bank Governor Michele Bullock.
Testifying before the federal parliament’s economics committee on Friday, Ms Bullock said access to cash was “a sensitive issue” after unrest in the industry threatened to disrupt access to it.
Commonwealth Bank has revealed how much it spends providing cash at its branches and ATMs amid growing concerns about the viability of cash services
“There is a minority, but a significant minority, of people who still rely heavily on cash and want to use it,” he said.
“The government is committed, and we are committed, to trying to maintain access to cash for people who want to use it,” he said.
“This is not just an Australian problem, it’s a problem around the world as the use of cash for transactions declines,” Bullock said.
“You have to consider all these fixed costs of maintaining a cash distribution system, and with fewer cash transactions that means the cost per transaction just keeps going up and up; it’s becoming uneconomical.”
The central bank and government are trying to maintain access to cash, says Michele Bullock
Ms Bullock said the central bank and federal government were encouraging the industry to design a more viable model for the long term.
He said the one-year industrial support package agreed between Armaguard and its key customers reduced the short-term risk of major disruption.
“It remains an important means of payment for many Australians,” he said.
‘Cash is used as a store of wealth, especially during periods of economic uncertainty, and can be a useful backup to electronic payment methods.’
