The availability of cash - and access points to get it - is getting pointy as the number of bank-owned ATMs shrink while a major money transporting business risks going under.
Armaguard, a monopoly provider of large-scale cash delivery services, is under financial trouble after it acquired a competitor in 2023, and later said its losses were greater than predicted as cash transactions decline.
In March 2024, the Australian banking Association, the big four banks, Woolworths, Coles and Australia Post offered a funding package worth $26 million to Armaguard. But they rejected it just before Easter, with parent company Linfox pouring $10 million into the business instead.
The issue got so dicey, Coles even paused currency orders - which was later reversed - and has cut withdrawal limits from $400 to $200.
In the meantime, data reveals the amount of bank-owned ATMs has shrunk, going from 9621 nationally in June 2020 to 5693 in June 2023. But the actual amount of cash-based withdrawals has remained relatively stable, with 30.2 million withdrawals made in January 2024 to the tune of $9.2 billion - roughly $308 per withdrawal.
Who's to blame for a lack of cash access points is up for debate.
Campaign group CashWelcome.org launched a petition in March 2023 calling for an Australian Banking and Cash Guarantee that included the following:
- All Australians must be able to have reasonable local access to cash and full banking services.
- All Australians must be able to choose cash when paying for food and essentials at physical retailers.
On March 27, 2024, the organisation issued a statement taking aim at the banks for " failing to find a viable long term solution to the cash crisis they created", citing the $26 million bailout package, plus various branch closures and even a whistleblower calling out a 'secret cashless agenda' by one bank.
"Banks profit from fees and data produced by card and phone purchases so they are making it harder for us to use cash," said spokesperson Jason Bryce.
"Banks have made millions of dollars over the last few years by limiting our access to cash.
"Banks need to pay to ensure we can access our cash when we want it."
The petition can be found at www.change.org/BankingAndCashGuarantee
