The decline in bank-owned ATMs has surged to nearly 60%, prompting a rapid increase in privately-owned machines that typically charge about $3 per withdrawal. This trend has raised significant concerns among experts regarding the fairness and feasibility of transitioning to a cashless society.
Regulatory data reveals a sharp drop in the number of bank-owned ATMs since 2017, with many bank locations now housing third-party ATMs. This shift has made it increasingly difficult for individuals, particularly those from lower-income backgrounds and rural areas, to find access to fee-free cash withdrawals. These groups often withdraw smaller amounts more frequently and feel the impact of this reduction the most.
Mark Humphery-Jenner, an associate professor at UNSW, recently faced this challenge himself while in an inner-city suburb where the closest free ATM was a ten-minute walk away. “In rural locations, it’s exponentially worse,” he remarked. “How many bank branches are even around in rural areas anymore?”
The trend of closing branches and ATMs has effectively transferred the responsibility of cash distribution from banks to supermarkets and post offices. This shift imposes restrictions related to operating hours and tighter withdrawal limits on consumers.
Humphery-Jenner underscores that banks have a responsibility to ensure easy access to cash. “If banks are going to accept individuals’ cash, it’s their duty to allow those individuals to withdraw that cash,” he stated. “That should be a fundamental requirement for banks—not just a social obligation.”
ATM numbers peaked in 2016, just prior to the Commonwealth Bank’s initiative to eliminate the unpopular $2 withdrawal fee, allowing customers from any Australian bank to access most ATMs without charge. However, almost immediately afterward, banks began scaling back their ATM networks. Since those fee changes, the number of bank-owned ATMs has plummeted by approximately 60%, while the overall number of ATMs has decreased by about 28%, with third-party machines often filling the gaps.
A select few banks, such as Macquarie and ING, offer limited or full refunds for ATM fees to their customers. Meanwhile, institutions like Westpac and ANZ have negotiated fee waivers with the atmx network, but customers from banks without such agreements still incur fees.
The decline in ATM availability coincides with a rise in debit card usage, which is promoted as a more convenient way to access funds. However, this transition has led to a confusing system of unclear card charges, resulting in a multibillion-dollar revenue windfall for banks and payment service providers.
The issue has started garnering political momentum amid rising cost-of-living concerns, prompting the Reserve Bank to expedite its review of the payments system. A spokesperson for the Commonwealth Bank emphasized that the bank has the largest network of ATMs in Australia and is involved in initiatives to provide fee-free access for customers in specific remote Indigenous communities. Similarly, a Westpac representative noted their partnership with atmx, allowing customers to utilize the country’s largest fleet of fee-free ATMs.
Despite the overall decline in cash usage, many individuals—including older Australians, those with limited internet access, low-income individuals, and people with disabilities—continue to rely on physical currency. Jason Bryce from the advocacy group Cash Welcome argues that banks cannot simply eliminate their ATMs without ensuring that customers have accessible, affordable options for withdrawing cash.
“They have an economic responsibility to maintain this national economic infrastructure,” Bryce asserted. “Banks must ensure that we have easy, local, and preferably fee-free access to our cash.”
He also highlighted the crucial role of cash during emergencies, stating, “You can’t just activate it during a natural disaster or a war. Cash needs to be available and circulating freely.”
