When was the last time you used an ATM?
As banks and customers move transactions online, the number of ATMs and bank branches has dropped by more than one in 10 in the last financial year, according to the latest APRA Points of Presence data for June 2023.
In fact, the report shows 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.
This trend reflects a growing shift in Australia from using physical cash to embracing electronic banking.
In 2022, cash made up only 13% of all payments, down significantly from 27% in 2019.
The percentage of 'High cash users,' those who use cash for 80% or more of their in-person transactions, dropped to 7% in 2022, down by half since 2019.
However, cash usage is not extinct yet. In August 2023, approximately $8.56 billion was withdrawn from ATMs in Australia in nearly 29 million transactions, according to the latest RBA statistics.
APRA Points of Presence: branches
The report highlighted that 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%).
Meanwhile, 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
| Number: June 2023 | Annual change (number, %) | Change from 5 yrs ago (number, %) | |
| ACT | 60 | -9, -13% | -32, -35% |
| NSW | 1,192 | -142, -11% | -590, -33% |
| NT | 46 | -4, -8% | -16, -26% |
| QLD | 779 | -60, -7% | -361, -32% |
| SA | 256 | -38, -13% | -166, -39% |
| TAS | 84 | -8, -9% | -46, -35% |
| VIC | 830 | -128, -13% | -493, -37% |
| WA | 339 | -35, -9% | -191, -36% |
| Other | 2 | 0, 0% | -2, -50% |
| TOTAL | 3,588 | -424, -11% | -1,897, -35% |
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
| Number: end FY2023 | Change from previous yr | Change from 5 yrs ago | |
| Major cities | 2027 | -302, -13% | -1,203, -37% |
| Inner regional | 892 | -74, -8% | -373, -29% |
| Outer regional | 531 | -38, -7% | -242, -31% |
| Remote | 98 | -4, -4% | -47, -32% |
| Very remote | 40 | -6, -13% | -32, -44% |
Source: APRA points of presence, June 2023, released 18 Oct 2023.
Big four branches
| Number: June 2023 | Annual change (number, %) | Change from 5 yrs ago (number, %) | |
| CBA | 728 | -73, -9% | -353, -33% |
| Westpac | 583 | -167, -22% | -428, -42% |
| NAB | 473 | -63, -12% | -215, -31% |
| ANZ | 342 | -72, -17% | -291, -46% |
| Total big four | 2,126 | -375, -15% | -1,287, -38% |
Source: APRA points of presence, June 2023, released 18 Oct 2023
APRA Points of Presence: ATMs
The report revealed that the total number of ATMs in Australia dropped by 718 in the last financial year – a decline of 11 per cent.
In comparison to FY2018, there are almost 7,000 fewer ATMs, marking a 55% decrease.
The largest annual decline occurred in cities, down by 12%, with Western Australia experiencing the most significant percentage drop at 14%.
Even though the big four banks have offered free access to their ATMs for all Australians since 2017, the overall number of these ATMs continues to decrease.
The most recent data from APRA shows a 9% reduction in big bank ATMs in the past financial year and a 53% decrease since June 2018.
However, Westpac and ANZ provide their customers with free access to Armaguard's network of over 1,700 ATMs in addition to their own ATMs.
Number of ATMs per state and territory
| Number: June 2023 | Annual change (number, %) | Change from 5 yrs ago (number, %) | |
| ACT | 88 | -9, -9% | -144, -62% |
| NSW | 1,851 | -231, -11% | -2,269, -55% |
| NT | 89 | -6, -6% | -58, -39% |
| QLD | 1,115 | -159, -12% | -1,371, -55% |
| SA | 390 | -37, -9% | -443, -53% |
| TAS | 109 | -6, -5% | -174, -61% |
| VIC | 1,540 | -185, -11% | -1,700, -52% |
| WA | 510 | -85, -14% | -787, -61% |
| Other | 1 | 0, 0% | 0, 0% |
| Total | 5,693 | -718, -11% | -6,946, -55% |
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
| By remoteness area | Number: end FY2023 | Change from previous yr | Change from 5 yrs ago |
| Major cities | 3,794 | -535, -12% | -5,322, -58% |
| Inner regional | 1,126 | -110, -9% | -1,099, -49% |
| Outer regional | 615 | -62, -9% | -448, -42% |
| Remote | 101 | -6, -6% | -54, -35% |
| Very remote | 57 | -5, -8% | -23, -29% |
Source: APRA points of presence, June 2023, released 18 Oct 2023.
Big four bank ATM numbers
| Number: June 2023 | Annual change (number, %) | Change from 5 yrs ago (number, %) | |
| CBA | 1,956 | -139, -7% | -1,713, -47% |
| Westpac | 917 | -225, -20% | -1,735, -65% |
| NAB | 777 | -88, -10% | -260, -25% |
| ANZ | 870 | -19, -2% | -1,424, -62% |
| Total big four | 4,520 | -471, -9% | -5,132, -53% |
Source: APRA points of presence, June 2023, released 18 Oct 2023.
Bank@Post continues to be an important option
The availability of 'other face-to-face' points of presence, including Bank@Post services, remains a common service in local communities.
Bank@Post is a service offered at Australia Post outlets where customers can perform basic banking tasks like depositing and withdrawing cash, provided their bank participates in this program.
According to APRA data, there was a slight 0.2% increase in the number of these service points over the last year, but there has been a 5% decline over the past five years.
Research from RateCity.com.au indicates that more than 70 banks, approximately 74% of the database, offer Bank@Post services to their customers.
This includes major banks like CBA, Westpac, and NAB, online-only banks like ING, and smaller credit unions with limited branches in specific locations.
However, ANZ does not provide its customers with access to Bank@Post services.
Are there cashless branches?
According to RateCity.com.au research, some CBA, NAB, and ANZ shopfronts only offer ATM access and don't accept deposits or cash withdrawals over the counter.
In contrast, all Westpac branches let customers deposit and withdraw cash over the counter.
| Deposit and withdrawals available at tellers in all branches? | Withdrawal limit via teller | |
| CBA | Not at CBA specialist centres | No limit – call ahead for large amounts. |
| Westpac | Yes | No limit – call ahead for large amounts. |
| NAB | Not at Expert Centres | No limit – call ahead for large amounts. |
| ANZ | No | Appointment preferred where amount is over $10,000 |
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.
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 to 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."
She further commented:
"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."
