ATMs and branches drop across the country – how banks are backing away from cash

The number of ATMs and bank branches has dropped by more than one in 10 in the last financial year, as banks and customers move their transactions online.

The latest APRA Points of Presence data for June 2023, released yesterday, shows the number of branches has dropped by 11 per cent in the space of a year (30 June 22 - 30 June 23), and by 35 per cent in the last five years.

The number of ATMs has also continued to fall, decreasing by 11 per cent in the last financial year. ATM numbers have more than halved in the last five years (-55%).

This trend comes as Australians increasingly ditch cash in favour of electronic banking. The latest RBA consumer payment survey showed cash accounted for just 13 per cent of the number of all payments in 2022, more than half of what it was just three years before (27% in 2019).

‘High cash users’, who use cash for 80 percent or more of their in-person transactions, represented around 7 per cent of Australians in 2022 – a number that, according to the RBA, has also halved since 2019.

That said, cash usage, while dropping, is not dead in the water. The latest RBA statistics show in the month of August 2023, a total of $8.56 billion was withdrawn from ATMs across Australia in almost 29 million transactions in seasonally adjusted terms.

APRA Points of Presence: branches

The number of branches in NSW has dropped by 142 over the last financial year, however, as a percentage change, the biggest drop was recorded in Victoria (-13.4%).

Westpac recorded the largest drop in the number of branches out of the big four banks in the last financial year (-22%), however, this is in part, a result of the bank’s strategy to merge branches across its brands to enable Westpac, St George, Bank of Melbourne and BankSA customers to access any Westpac Group branch. According to Westpac, a total of 42 branches were co-located in the last financial year where two or more branches were operating.

Australia’s biggest bank, CBA, recorded the lowest number of closures in percentage terms at 9 per cent.

Number of branches per state and territory

Source: APRA points of presence, June 2023, released 18 Oct 2023. Other includes Jervis Bay Territory and the external Territories of Christmas Island and Cocos (Keeling) Islands.

Number of branches by remoteness in Australia

Source: APRA points of presence, June 2023, released 18 Oct 2023.

Big four branches

Source: APRA points of presence, June 2023, released 18 Oct 2023.

APRA Points of Presence: ATMs

The total number of ATMs in Australia dropped by 718 in the last financial year – a decline of 11 per cent.

Compared to FY2018 there were almost 7,000 fewer ATMs, a drop of 55 per cent.

The biggest annual drop was recorded in the cities (-12%), with Western Australia recording the biggest annual drop in percentage terms (-14%).

The big four banks’ ATMs have been free to all Australians since 2017, however, collectively the number of these ATMs continue to drop. The latest APRA data shows the number of big bank ATMs has reduced by 9 per cent in the last financial year and 53 per cent since June 2018.

However, Westpac and ANZ offer their customers free access to ATMs provided by Armaguard, which has a network of over 1,700 ATMs in addition to their own ATMs.

Number of ATMs per state and territory

Source: APRA points of presence, June 2023, released 18 Oct 2023. Other includes Jervis Bay Territory and the external Territories of Christmas Island and Cocos (Keeling) Islands.

Number of ATMs by remoteness in Australia

Source: APRA points of presence, June 2023, released 18 Oct 2023.

Big four bank ATM numbers

Source: APRA points of presence, June 2023, released 18 Oct 2023.

Bank@Post continues to be an important option

The number of ‘other face-to-face’ points of presence, as categorised by APRA, which includes Bank@Post services, remains to be a widespread service in local communities.

Bank@Post is a service provided by Australia Post outlets where customers can perform basic banking services, such as depositing and withdrawing cash, if their bank participates in the scheme.

The APRA data shows there was a 0.2 per cent increase in the number of these points of presence over the last financial year, but a 5 per cent drop in the last five years.

RateCity.com.au research shows more than 70 banks offer Bank@Post services to their customers (approximately 74% of the database).

This includes big banks CBA, Westpac and NAB, along with online-only banks such as ING and smaller credit unions with limited branches in specific locations.

ANZ does not provide its customers with Bank@Post access.

Cashless branches?

RateCity.com.au research also shows that a small number of CBA, NAB and ANZ shopfronts do not accept deposits or cash withdrawals over the counter, with ATM access only at these locations.

All Westpac branches allow customers to deposit and take out cash over the counter.

Source: RateCity.com.au

RateCity.com.au research director Sally Tindall said: “Cash is no longer king, but it’s not dead in the water either.”

“RBA statistics show over $8 billion is withdrawn from ATMs across the country every single month, confirming we’re not a cashless society just yet,” she said.

“While the majority of banking services have moved online, some customers still prefer to transact face-to-face, while others rely on in-branch banking because they need to deposit or withdraw large amounts of cash, whether that’s for their business, the local footy club, or to pay for something they’ve bought second hand to avoid scammers.

“Westpac might have recorded the largest number of branch closures over the last financial year, however, this is partly due the merging of branches across the banking group. Customers of Westpac, St George, Bank of Melbourne and BankSA can all access teller facilities from the same location.

“The move to online banking has caused banks to reassess their points of presence. To counter this, some banks have decided to piggyback on existing facilities such as third-party ATM networks and Australia Post branches to provide customers with more access to basic services.

“Australia Post branches play an important role in keeping competition in the banking sector alive, because of the basic banking services they provide.

“Many customers who opt for a smaller bank or credit union with a limited branch network are comforted by the fact that if they need to deposit or withdraw a reasonable amount of cash, they can head to their nearest post office.

“That said, Bank@Post services are limited and not a direct replacement for a full-service branch.

“With 566 submissions to the Senate inquiry, the issue of regional and remote branch closures is a significant one.

“Banks provide an important service in regional and remote communities that extends beyond the basic fundamentals of accepting and dispensing cash.

“The Senate is rightly looking into the impact of these closures, and will no doubt be factoring in this latest round of APRA data,” she said.

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