Customers at a major Australian bank will be stopped from withdrawing and depositing cash and cheques from branches this month, as it shifts towards “completely digital” payments.
Macquarie Bank last year announced it would phase out its cash and cheque payments for customers from this year, citing a shift in customers’ banking habits.
From May 20, Macquarie customers will not be able to access over-the-counter services at Macquarie offices or order new chequebooks.
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Chequebooks for new cash management accounts were the first to go when the bank ditched the service in January.
Then in March, Macquarie ceased its automated telephone banking service, meaning customers can no longer make payments over the phone.
Come November 1, customers will not be able to write or deposit personal cheques, request or deposit bank cheques or make a super contributions or payments via cheques.
Macquarie will also end its partnership with NAB branches, meaning no depositing cash or cheques over the counter at NAB either.
Digital banking was a “safe, quick, and more convenient” way to transact, Macquarie said.
“As a digital bank, we’re committed to transitioning to completely digital payments, and continuing to ensure our customers can access secure and reliable digital payment options,” Macquarie said.
Customers will still be able to withdraw cash at an ATM.
The shift follows other major banks as they transition towards digital-focused banking.
ANZ, Commonwealth Bank and NAB have already begun phasing out cheques.
Bankwest is moving to a digital bank this year, as the bank prepares to shut 45 branches in Western Australia by October.
While the bank faced backlash over the move, it said the decision was influenced by customers’ preferences, with 97 per cent of transactions completed digitally, while less than 2 per cent of customers visit a branch regularly.
Australians are using less cash for day-to-day payments, with consumers increasingly choosing to pay for things electronically, according to the Reserve Bank of Australia.
In 2019, 27 per cent of in-person transactions were made with cash but by 2022 this more than halved to just 13 per cent.
The use of ATMs has also been declining since 2008, with the number and value of withdrawals falling by about 60 per cent and 40 per cent, respectively, the RBA reports.
While cash is no longer king, there has been a small comeback in withdrawals.
The RBA’s Retail Payments report, published last month, revealed Australians withdrew $9.5 billion in total from ATMs in February 2024 — a growth rate of 9.5 per cent over the year from February 2023.
The report showed Aussies made 30.9 million ATM withdrawals — a 3.7 per cent rise over 12 months.