Citi’s Australian bank branches go cashless

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http://www.smh.com.au/business/banking-and-finance/citis-australian-bank-branches-go-cashless-20161114-gspedd.html

Citi is removing cash from its Australian bank branches, because it is no longer worth offering a service that is used by less than one in twenty customers.

As consumers embrace digital banking and the role of cash dwindles, the US bank said its six Australian retail branches would remove cash handling services, because of falling demand from customers who instead manage their money digitally.

While Citi is a small force in domestic retail banking, the move is a sign of how banks are being forced to reinvent branches in the face of a boom in digital transactions on mobile and contactless payments.

It came as UBS analysts even floated the idea of phasing out high-value Australian bank notes altogether, a change it said would lower crime, boost tax collections and strengthen the banks’ deposit holdings.

Citi’s head of retail banking Janine Copelin said less than 4 per cent of the bank’s customers had made cash transactions through a branch in the last year.

“This move to cashless branches reflects Citi’s commitment to digital banking and we are investing in the channels our customers prefer to use,” she said.

“There is no plan to close our branches. While the number of customers visiting our branches to access cash handling services has fallen, the branch network remains an important component of how we serve our high-net worth customers.”

Customers could still make cash deposits through Australia Post’s network, she said, while the bank also allows deposits at National Australia Bank branches for deposit and mortgage customers.

Citi said more than 95 per cent of its transactions occur outside branches.

Reserve Bank data also confirms the decline in cash use. Cash was used in 78 per cent of payments worth less than $10 in 2013,  the latest year for which figures are available, down from 95 per cent in 2007.

Another indication of declining cash use is the fall in the number of ATM transactions, which fell by 6.6 per cent last financial year.

Even though cash is being used less for payments, however, the total value of $100 bank notes on issue continues to climb.

A separate report from UBS analyst Jontahan Mott this week said there were three times as many Australian $100 notes on issue as there were $5 notes. After India last week said it would take the highest value notes out of circulation, Mr Mott said removing large denomination notes would be “good for the economy and good for the banks.”

Economic benefits would include a reduction in crime, higher tax revenue from fewer cash transactions and lower rates of welfare fraud, he said. He estimated phasing out $100 bills would raise household deposits by 4 per cent if they were put into bank deposits.

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thanks to joelH for the link..

“the US bank said its six Australian retail branches would remove cash handling services, because of falling demand from customers who instead manage their money digitally.”

they are killing cash..i have a few more posts to come on this theme..

“Reserve Bank data also confirms the decline in cash use. Cash was used in 78 per cent of payments worth less than $10 in 2013,  the latest year for which figures are available, down from 95 per cent in 2007.”

reserve bank data..where do they get that information?

“This move to cashless branches reflects Citi’s commitment to digital banking and we are investing in the channels our customers prefer to use,”

401

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~ by seeker401 on November 18, 2016.

14 Responses to “Citi’s Australian bank branches go cashless”

  1. Citibank is banking on the Dakota Access pipeline.
    http://www.nationofchange.org/2016/09/07/meet-banks-financing-attacks-standing-rock-sioux-protestors/

    Why should people care where they bank? Simple; we reap what we sow.

  2. Sweden Begins Planning Transition From Cash To Digital Currency

    http://www.zerohedge.com/news/2016-11-17/sweden-begins-planning-transition-cash-digital-currency

  3. Reblogged this on World Peace Forum.

  4. i am ‘glad’ to see a cashless society materialise within this decade.. bring it
    so i don’t hv to buy a wallet every year. Those sloshing coins make holes in it… 🙂

    Meanwhile India might also be banning Gold.. on the cards

    ==
    The War on Cash is not over… it is about to intensify.

    The Trump Presidency has distracted from the next major move to be implemented by Financial Elite.

    That move is a cash ban.

    Cash, particularly physical cash (as in bills and coins) is a huge problem for insolvent banks.

    Indeed, it is the ONLY problem they have yet to address.

    If you’re a large bank and you’re overleveraged due to excessive assets to capital ratios (particularly assets that are at risk of losing value or default) there are three key issues you need to control.

    1) You need to be able to value your assets however you please.

    2) You need access to liquidity without lowering you asset to capital ratios.

    3) You need to be able to stop bank runs or capital flights.

    The Central Banks have already fixed #1 and #2 by suspending “mark to market” accounting standards and implementing QE, respectively. And thanks to rehypothecation, banks can sell assets to Central Banks via QE and still use those same assets as collateral on their derivatives trades.

    That leaves #3: capital flights.

    At the end of the day, no matter how many tricks the Financial Elites employ via accounting gimmicks and QE programs, depositors can still choose to take their money out of the banks and transfer it to physical cash.

    Hence the call for cash bans, particularly of large bills.
    ..
    ..
    http://www.zerohedge.com/news/2016-11-21/global-cash-ban-not-over-its-about-intensify

    • The Central Banks have already fixed #1 and #2 by suspending “mark to market” accounting standards and implementing QE, respectively. And thanks to rehypothecation, banks can sell assets to Central Banks via QE and still use those same assets as collateral on their derivatives trades.

      That leaves #3: capital flights.

      At the end of the day, no matter how many tricks the Financial Elites employ via accounting gimmicks and QE programs, depositors can still choose to take their money out of the banks and transfer it to physical cash.

      Hence the call for cash bans, particularly of large bills.

  5. How would you like a tax on every ATM withdrawal..?

  6. Spice Alley has gone cashless

    http://www.abc.net.au/news/2017-03-27/is-australia-on-the-brink-of-becoming-cashless-society/8377288

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