Bank fees tip of iceberg as anger mounts
The proposal to charge $3 for some customers taking out money at branches is the canary in the coalmine for anger at a rapidly changing banking system.
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Since early last year, NSA has been at the forefront of the movement to Keep Cash accessible and accepted, which has had a formidable influence on government and corporate decisions such as this.
NSA has welcomed the Commonwealth Bank’s decision to delay charging some customers for cash withdrawals from its branches, after the move attracted widespread criticism.
The bank said it would pause the migration of affected customers from its “Complete Access” accounts to “Smart Access” accounts, which was to begin on 6 January 2025.
The Smart Access account includes an “assisted withdrawal fee”, where customers taking money out at bank branches, post offices, or by phone are charged $3 per withdrawal.
National Seniors Australia chief executive officer Chris Grice said, “NSA is pleased to hear Commonwealth Bank (CBA) has listened to its customers and the broader Australian community and paused plans to charge customers a $3 fee to withdraw their own money from branches.
“Similar to the government’s proposal to mandate businesses that sell essential items to accept cash, it shows the importance of 'people power’.
It is vital the government continues to work with the banking industry, corporate Australia, and consumers to help protect cash and the people who use it. Assistant Treasurer and Minister for Financial Services Stephen Jones was also among those who called on the bank to reverse the original decision soon after it was announced.
Mr Grice said, according to Treasury figures, 1.5 million Australians were still using cash on a regular basis. “We know that about 85% of those are 65-plus.”
He proposed change by CBA is just one example of changes occurring in the banking sector and comes on top of sector wide branch and ATM closures, the refusal of a growing number of retailers to accept cash, cheques being removed as a form of payment, and phone banking systems being shut down. It’s the accumulation of these significant changes NSA is concerned about.
“It’s all this stuff in aggregate that we are really concerned about.”
Mr Grice also noted staff played an important role in detecting elder abuse, for example in instances where some seniors are coerced into withdrawing money to give to someone else.
If vulnerable Australians could no longer used branches for this purpose because they did not want to pay a fee, there could be an increase in this kind of financial abuse.
NSA will ensure the Federal Government remained firm in its proposal to mandate that businesses accept cash for essential items such as groceries and fuel. That mandate is expected to be implemented from 1 January 2026, subject to consultation that is occurring this month.
“We will also support the proposal to create a new banking levy to ensure face-to-face banking services remain viable in communities who need them.”
Related reading: ABC
