Regional Australia voices concern after major bank moves away from cash transactions

A regional business has hit out at a major bank’s decision to shift away from over-the-counter cash transactions, saying there’s still a need for physical money in rural areas.

Macquarie Bank on Wednesday unveiled plans to scrap cash, cheque and phone payment services next year.

Customers will still be able to withdraw cash at ATMs but won’t be able to deposit or withdraw money with a teller.

Rhiannon Druce, the General Manager of Junee Licorice and Chocolate Factory in the New South Wales Riverina region, said she feared other banks could follow suit.

She said that regional communities relied heavily on having access to over-the-counter transactions because internet access isn’t as capable as in metro areas, limiting opportunities for online banking.

‘’People in regional areas constantly have challenges around internet access so using cash is often an easier option, making the local bank branch and cash services important to those in country towns,” Druce said.

“There is concern other banks will follow Macquarie Bank’s lead which unfortunately feels inevitable.”

She said she’s planning to attend a parliamentary inquiry about bank closures in regional areas next Thursday.

Nationals MP and former Deputy Prime Minister Michael McCormack said regional areas had vastly different banking needs to capital cities.

“Taking face-to-face banking services out of regional centres is an affront to country communities who have supported the banks for decades, particularly through Agribusiness,” he said.

“I urge and encourage those who feel aggrieved by these bank closures to keep an eye on the inquiry’s website for further details on how to register.”

Macquarie Bank said it was scrapping cash, cheque and phone payment services to modernise its offerings.

Payments will soon only be possible digitally, meaning all cash withdrawals will take place entirely at ATMs from November 2024.

“Between January 2024 and November 2024, we’ll be phasing out our cash and cheque services across all Macquarie banking and wealth management products, including pension and super accounts,” Macquarie Bank said.

New chequebooks for new cash management accounts, including for any Macquarie Wrap accounts that may be linked, will be the first to go in January.

Then in March 2024, it will no longer be possible to make payments over the phone, as the automated telephone banking service is shut down.

In May 2024, depositing or withdrawing cash or cheques over the counter at Macquarie branches will no longer be possible.

Ordering chequebooks for existing accounts will also no longer be possible from May.

Macquarie Bank said: “Customers can continue to withdraw cash from their transaction account via ATMs across Australia and overseas without fees. However, cash deposits and branch withdrawals will no longer be available.”

Then, in November 2024, writing or depositing cheques, including bank cheques, will no longer be possible, nor will superannuation contributions or payments using cheques.

Depositing or withdrawing cash over the counter at NAB branches will also be off the table for the bank’s customers from November.

“This means from November 2024 we’ll no longer offer cash or cheque services. Instead, you’ll be able to make payments digitally — a safer, quicker, and more convenient way to bank,” Macquarie Bank said.