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Not too long ago, Australians lined up at ATMs on Friday evenings, made weekend deposits at the local bank, and saw branches on every major street. Fast forward to 2025, and the landscape has changed drastically. Bank branches are vanishing, ATMs are becoming rare, and digital banking is taking over.
So, what exactly happened to bank branches and ATMs in Australia?
💳 1. The Rise of Cashless Payments
Australia is quickly becoming one of the most cashless countries in the world. According to the Reserve Bank of Australia (RBA), less than 13% of all payments were made with cash in 2023 — down from 70% a decade earlier. Tap-and-go payments, digital wallets like Apple Pay and Google Pay, and instant transfers via PayID have taken over.
🧾 2. COVID-19 Accelerated the Shift
During the pandemic, many Australians avoided handling cash due to health concerns. Banks and retailers encouraged digital payments, and consumers adapted quickly. What started as a temporary change became permanent. Branch visits dropped significantly, pushing banks to reevaluate their physical presence.
🏦 3. Banks Are Shutting Down Branches
Major banks such as Commonwealth Bank, ANZ, Westpac, and NAB have closed hundreds of branches across the country — especially in regional and rural areas. Some towns no longer have a single local branch.
Why? The answer is economics. Fewer customers visiting physical branches means higher costs and lower returns for banks. By closing branches, they invest more into mobile apps and online services.
🏧 4. ATM Networks Are Shrinking
ATMs are also disappearing. Over 3,000 ATMs were removed nationwide between 2020 and 2024. Some banks have removed their entire ATM networks and now rely on third-party operators like Armaguard and Precinct ATM for limited cash access.
Australia Post’s Bank@Post service has filled some of the gap — allowing customers of many banks to deposit and withdraw cash at participating post offices.
📱 5. Digital Banking Is the New Normal
Online banking apps now offer:
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24/7 access to accounts
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Real-time payments
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Chatbot customer service
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Card controls and instant freeze options
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Loan applications and investment services
Neobanks like Up, 86 400 (now part of UBank), and Judo Bank are 100% digital with no physical branches at all.
👵 6. Who’s Affected the Most?
While tech-savvy Australians enjoy the convenience, many elderly, remote, and vulnerable populations are feeling left behind. Some community groups and regional councils have raised concerns about financial exclusion.
💡 What Can You Do?
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Set up online banking with strong passwords and 2FA
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Use Australia Post’s Bank@Post services if you need physical transactions
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Download your bank’s mobile app and learn to use it
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Consider switching to banks with better digital support
📍 In Summary
Australia’s banking sector is evolving rapidly. Physical bank branches and ATMs are declining, while digital banking is rising. The cashless trend isn’t just a prediction — it’s already here.
While this change has made banking more accessible for many, it’s also sparked an important conversation about inclusion and access in a fast-changing digital economy.
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📌 Want more updates on life, finance, and migration in Australia?
Visit Xpino’s Blog: www.xpinosblog.com.ng
